Communication in business: WASSCE Commerce

A wholesaler's price change is useless if retailers never hear of it, and an order is worthless if the supplier misreads it. Communication is the passing of information, ideas and instructions between people. In commerce it removes the hindrance of knowledge (information): buyers and sellers must know about each other before they can trade.

Learning objectives

By the end of this lesson you should be able to:

define communication and explain its importance in commerce
describe the communication process
classify the types and methods of communication
compare oral, written, visual and electronic communication
explain the barriers to effective communication and how to overcome them

Meaning and importance of communication

Definition

Communication is the transfer of messages (information, ideas, instructions or feelings) from a sender to a receiver through a channel, with the receiver understanding and responding.

Importance of communication in commerce:

Links buyers and sellers: enquiries, quotations, orders and complaints.
Speeds up business: decisions and transactions are made faster.
Advertising depends on it to inform and persuade consumers.
Coordinates work within a firm: instructions, reports and meetings.
Market information: traders learn about prices, demand and competitors.
Helps other aids to trade: banking, insurance and transport rely on messages.
Makes foreign trade possible by linking traders across countries.
Reduces costs of travel and wasted journeys.
Good public relations with customers and the public.

The communication process

The communication process: a sender encodes a message, which passes through a channel to a receiver who decodes it and gives feedback; noise can distort it

Figure 1. Communication is complete only when feedback returns to the sender. WASSCE Tutor diagram.

Element	Meaning
Sender	The person or firm with the message
Encoding	Putting the idea into words, figures, pictures or signals
Message	The information itself
Channel (medium)	The means used: letter, telephone, email, meeting, poster
Receiver	The person who gets the message
Decoding	The receiver interpreting the message
Feedback	The receiver's response, showing whether the message was understood
Noise	Anything that distorts the message (poor network, jargon, distraction)

Types of communication

By direction

Internal: within a firm (manager to staff, between departments). It may be downward (instructions), upward (reports, suggestions) or horizontal (between people at the same level).
External: between the firm and outsiders (customers, suppliers, banks, government).

By formality

Formal: through official channels and records (letters, memos, minutes).
Informal: casual conversation, "grapevine" information.

Methods of communication

Method	Examples	Advantages	Disadvantages
Oral (verbal)	Face-to-face talk, telephone, meetings, interviews, radio	Quick; immediate feedback; personal; questions answered at once	No permanent record; can be forgotten or denied; may be misheard
Written	Letters, memos, reports, notices, minutes, circulars, invoices	Permanent record and evidence; can be checked and copied; detailed	Slower; costly in time; no instant feedback; can be misread
Visual	Charts, graphs, posters, signs, photographs, films	Attracts attention; easy to understand; crosses language barriers	Limited detail; may be misinterpreted
Electronic	Email, SMS, WhatsApp, video calls, websites, social media	Very fast; cheap; reaches many people; works over long distances; can keep records	Needs power, devices and network; risk of hacking, fraud and viruses

In Sierra Leone

A market trader in Freetown may phone a supplier in Kenema to check prices (oral), send the order on WhatsApp (electronic), receive a written invoice with the goods and pay by mobile money with an SMS receipt. One deal can use several methods, and the written and electronic ones leave a record.

Qualities of good communication

The message should be:

clear: simple words
correct: accurate facts and figures
complete: all the necessary details
concise: no unnecessary words
courteous: polite
timely: sent at the right time
sent through the right channel

Barriers to effective communication

Barrier	How it is overcome
Language differences and jargon	Use simple, common language; interpreters
Noise: poor network, distractions	Better equipment; quiet place; repeat important points
Poor listening or lack of attention	Active listening; ask for feedback
Wrong choice of channel	Choose the channel that suits the message and receiver
Distance and time differences	Telephone, email, video calls
Illiteracy	Oral and visual messages; local languages
Emotions and attitudes: anger, bias, fear	Calm, respectful tone
Too much information (overload)	Keep messages short and focused
Cultural differences	Respect for customs; local agents
Poor infrastructure: power cuts, weak networks	Backup power; several networks

Common mistake

Communication is not complete when the message is sent. It is complete when the receiver understands it and gives feedback. Answers that leave out feedback lose marks.

Key points

Communication removes the hindrance of knowledge; it links buyers and sellers.
Process: sender → encoding → message → channel → receiver → decoding → feedback, with noise as interference.
Methods: oral, written, visual and electronic; written methods give a record, oral gives quick feedback.
Barriers: language, noise, poor listening, wrong channel, illiteracy, emotions, overload, poor infrastructure.

WASSCE examination focus

WAEC tests this

Expect to explain the importance of communication to commerce, to describe the communication process (sometimes with a diagram), to compare oral and written communication, and to state barriers to effective communication and how to overcome them. Draw the process with feedback when asked.

Quick check

Which hindrance to trade does communication remove?
What is feedback, and why is it important?
Give one advantage and one disadvantage of written communication.
Give three barriers to effective communication.

Answers: 1. The hindrance of knowledge (information). 2. The receiver's response to a message; it shows the sender whether the message was understood. 3. Advantage: a permanent record (or evidence, detail). Disadvantage: slow (or no instant feedback, can be misread). 4. Any three: language and jargon, noise, poor listening, wrong channel, distance, illiteracy, emotions, overload, cultural differences, poor infrastructure.

Communication in business