Internal Communication takes place within the company, through oral and written channels such as meetings, speeches, memos, emails, phone calls and persons speaking to each other. External Communication occurs when messages leave the company or business or messages come into the company from outside sources. Companies communicate with the public through advertising, with customers through activities like sales promotions, order fullfillment and handling complaints. Business communicate with other companies through email, letters, proposals, reports, presentations, meetings and phone calls. A business may communicate with the government through business sales contracts and requests for information, like laws, regulations and taxes.
Communication Channels can be formal and informal, along with being internal or external.
Internal Formal Channels are often discussed in terms of communication flow. Most companies and businesses set up a structured hierarchy of command and control and leadership. The President or CEO is at the top of the hierarchy, controlling divisions and ranks beneath him or her, such as vice presidents, division managers, sales representatives, etc. The further up the hierarchy within a company, the more responsibility and decision-making power a person tends to have. As such, communication is said to flow from level to level.