Department Of Technical Education

Andhra Pradesh
Name : A.Ram Reddy
Designation : Lecturer
Branch : D.C.C.P.
Institute : SRRS Govt. Polytechnic, Sircilla
Year/Semester : IV Semester
Subject : Business Correspondence
Subject Code : CCP-404
Topic : Collection Letters
Duration : 50 Minutes
Sub Topic : Meaning, Different occasions for
writing Circular Letters
Teaching Aids : PPT CCP-404.33 1
OBJECTIVES

On completion of this period, you will be

able to:
 Explain circumstances when circular letters are
written
 Explain the meaning and purpose of trade
circular letters

CCP-404.33 2
 Recap
 Circulars Letters are the letters which contain the
same subject matter addressed to different persons.
 The main objective is to give publicity for a cause
 It catches the attention of the reader
 It gives valuable information to the reader
 It improvers customer relations

CCP-404.33 3
Circular Letters
Circular letters are written in the following
situations:
 New Shop opening / Business expansion.
 Change of address of premises.
 Introducing a new product
 Discount sale
 Obtaining an agency.
CCP-404.33 4
Circular Letters
 Admission of a new partner.
 Retirement or death of a partner.
 Change in the constitution of the
firm.
 Retirement of a salesman.
 Authorization of powers.
 Dissolution of business.
 Sale of old assets.
 Amalgamations of business
CCP-404.33 5
Circular Letters

 Change in personnel of the firm

 Other internal business changes
 Transfer of business etc

CCP-404.33 6
Circular Letters
 Any changes relating to internal business or offers
to customer informed to patrons, business friends
and public.
 This is necessary in the interests of the business
itself.
 It may be done in various ways.
 Personal solicitation is generally considered the
best method, but
 Not possible due to short time and expense.
 Also done through newspapers

CCP-404.33 7
Circular Letters
 But it catches the attention of only few people
 Circular letters are printed or cyclostyled
 Hundreds of which may not be posted in one
day and at a very small expense

CCP-404.33 8
Circular Letters

 Though the circular letter is either printed or

cyclostyled, the name of the sender must never
be so done.
 It must be either in writing or in facsimile.

CCP-404.33 9
Trade Circular Letter

 Most important type of circular letter.

 Helps business man brings his/her goods to
potential buyers and
 Solicits their patronage.

CCP-404.33 10
Trade Circular Letter
 If sales fall it affects the finances of the firm.
 For temporary slackness producer will not
stop production.
 Nor will the wholesale dealer dispense with
his staff.
 They will continue in hopes of better times.
 But they cannot do this indefinitely.

CCP-404.33 11
Trade Circular Letter
 A time will come when either the work must be
stopped or the products sold.
 Then the need of finding a market becomes very
acute.
 It should not be supposed, however, that the
problem of finding a market arises only when the
sales fall off.
 There is nothing like standing still in this world.
 And the merchant who does not try to improve his
sales will soon find himself in a perilous position.
CCP-404.33 12
Trade Circular Letter
 Finding a market is not a very easy task.
 It means persuading people to part with a portion of their
money in exchange for something and
 Many will be found reluctant to do this in ordinary
circumstances.
 A cut in price is, no doubt, a very effective method in
increasing sales.

CCP-404.33 13
Trade Circular Letter
 But this is not always possible.
 Besides, the cut in prices has to be brought to the notice
of prospective buyers.
 So traders write trade circular letters to find sales for their
production
 Businessmen are so busy and in most cases they do not
find time to read circular letters
 It they open the letter and realize that it is a trade circular
they immediately drop it into the waste paper basket

CCP-404.33 14
Trade Circular Letter
 The circulars, if they are to serve their purpose,
must be saved from such a fate.
 So great care is necessary in the drafting the trade
circular letters
 They should either be cyclostyled or printed in type
script, the name and address being typed later on.
 They should attract the attention of the reader

CCP-404.33 15
SUMMARY
So far we have discussed about:
 The meaning of Circular Letter.
 The different occasions for writing a Circular
Letter.
 Opening of a new branch, expansion of
business change of address etc
 The Trade Circular Letter.
 Trade circular letter is written to improve the
sales

CCP-404.33 16
QUIZ
1.Circular Letters are written:
a. When a new branch is opened.
b. When introduced a new article.
c. When obtained a new agency.
d. All of the above

CCP-404.33 17
QUIZ

2.Trade circular letters are written with the

objective of
a) Improve purchaser
b) Improve sales
c) Both A and B
d) None

CCP-404.33 18
Frequently Asked Questions

1.Write any five circumstances for writing circular

letters.
2.What is a trade circular for X and Co, Guntur
who announced discount of 20 to 40% on
Silver Jubilee year of firm’s establishment.

CCP-404.33 19