External business communication

Updated April 17, 2017

External business communication is just as important to the life and vitality of a business as internal communication. External business communication places focus on the relationships and various audiences that are outside of the company. External communication’s main expression is through public relations, media relations, marketing management and advertising, according to BNET. Successful businesses utilise effective internal and external business communication to accomplish the company’s goals and mission.


External business communication is defined by BNET as, “the exchange of information and messages between an organisation and other organisations, groups, or individuals outside its formal structure.”


External business communication is intended to organise cooperation between the business and other groups and create a positive corporate image, according to BNET. External business communication helps organise events, deals and happenings with suppliers and other businesses to ensure products and service are delivered on time. It also provides clarity for business deals, meeting times and agreements. Maintaining a favourable image of the company is an important aspect of external business communication. This is accomplished through marketing, advertising and public relations.

Improvement, a business development company, states that external business communication helps to improve overall performance, public goodwill and the corporate image. External communication ensures that all parties involved with the business are well informed, provided direction and receive progress reports. This builds trust between the company and those outside the business (public goodwill). When a company practices effective external communications the company’s public image is favourable. The company will be perceived as honourable, trustworthy and dependable.

Channels (Types)

External business communication manifests itself though various channels. Channels are the medium used to deliver a message. External business communication is used in mass media, interpersonal and organizational communication and electronic media such as the Internet, e-mail or text messages. Mass media includes the use of commercial radio, television, newspapers and magazines. Interpersonal external communication is a one-on-one meeting between two executives of two different businesses. Organizational communication is messages sent on a corporate level from the business to a specific group outside the company.


External business communication needs to be assessed by an external source such as communication specialist annually. A communication assessment hires an outside company to observe and determine areas of strength and weakness in the company’s external communication effectiveness. The assessment provides the company with action steps to correct and strengthen areas of weakness to improve external communication.

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About the Author

Nicole Papa has been a freelance writer since 2004 with a focus on SEO and Internet marketing. She has written for and JOLT! Marketing. She graduated from the University of South Florida with a Bachelor of Arts in mass media communications, and from the University of Texas with an associate degree in theater performance.