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What Is External Communication in Business? - Definition, Strategies & Examples

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  • 0:01 External Communication
  • 0:23 Channels of Communication
  • 0:48 Strategies of External…
  • 2:49 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley
Businesses communicate with the outside world in many different ways. In this lesson, you'll learn about how businesses communicate with their environment and be given some examples. A short quiz follows the lesson.

Definition of External Communication

External communication is the transmission of information between a business and another person or entity in the company's external environment. Examples of these people and entities include customers, potential customers, suppliers, investors, shareholders, and society at large.

Channels of Communication

A channel of communication is simply the way the organization transmits its message. Communication channels include face-to-face communication, print media, such as newspapers, magazines, fliers, and newsletters, broadcast media, such as radio and television, and electronic communication, such as websites, social media, such as Facebook and Twitter, and email.

Strategies of External Communication

A business typically engages in different strategies in managing its external communications. The approach used will vary by circumstance, purpose, and the intended recipient. For example, a business will communicate differently if it is communicating with potential investors, its shareholders, or its customers.

Bad news is communicated differently than good news. For example, an oil company will communicate about an oil spill differently than its joint venture with another company to develop alternative fuels. Some generalized approaches to external communications include:

Public relations is a manner of external communication where a business uses psychological and sociological knowledge to create a positive image of its business and activities. The message is broad and is about creating a good public image. For example, a fast food chain may sponsor a kids' marathon to improve its image in the community relating to health.

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