Circular Letter: Purpose, Features, Importance, Samples

circular letter

A circular letter is written to achieve specific purposes, and certain situations favor its use. It is a popular and effective medium in business, especially for reaching a large audience with important messages. It can be considered a general notice or declaration to the public.

What is a Circular Letter?

This type of letter is typically used to communicate various messages to the public, such as introducing new products, announcing the opening of a new showroom or branch, informing about office or shop location changes, or notifying customers about product price changes. Circular letters are usually addressed to a large number of people simultaneously.

Any business or non-business organization can utilize this letter, but it is most effective when the target audience is a large group of people.

A letter written for a large number of readers to convey a message is a circular letter. These letters serve as business declarations or tools for business expansion. Circular letters can also be categorized as persuasive letters.

Persuasive letters provide opportunities to promote one’s organization, gain acceptance for an idea or point of view, and prompt action. These letters are crafted to convince someone to take action or accept a point of view that benefits the business.

While circular letters can be used to inform people about things like a change of address, in the business world, they are typically employed to persuade people to purchase products or services, request special favors, or motivate people to engage in business with the firm.

Regardless of the purpose of the circular letter, it contains an element of persuasion. Every business endeavor aims to prompt action in its favor. The circular letter is a general address to the public that includes an appeal in various forms to support the organization.

6 Purposes of Circular Letters

A circular letter is written to achieve specific purposes, and certain situations are favorable for its use. The following description outlines its purposes:

To Introduce a Product

The primary purpose of a circular letter is to introduce a product to the masses or a specific target market. It includes information about the product, its production technology, and quality assurance, instilling confidence in prospective buyers.

To Request Action in Favor of the Business Organization

Circular letters serve as persuasive communications, urging readers to take immediate action, such as making a purchase in support of the business organization.

To Enhance the Company’s Goodwill

Another purpose of the circular letter is to boost the company’s goodwill by informing people about its social initiatives, quality improvements, cultural and educational sponsorships, and more.

To Communicate the Product’s Availability

Circular letters are used to inform a large number of people or customers about the availability of a product. This helps customers find where they can purchase the product, reducing the effort required to search for it.

To Enter a New Market Area

A crucial objective of the circular letter is to announce the entry of a new product into a specific market. Therefore, circular letters convey the news that a product is about to be introduced in a new market.

To Benefit Both Customers and Marketers

Circular letters highlight the mutual benefits for both customers and marketers resulting from expected buyer behavior. Their purpose is to foster mutual understanding and collaboration between marketers and customers.

14 Features of Circular Letters

Business people compose a circular letter to persuade a group of people to buy a product or service, vote for a particular issue, or inform the public about changes of address or the establishment of a branch, showroom, or shop.

Regardless of the purpose of the circular letter, it must possess certain qualities to achieve its objective effectively. The general effective characteristics of a circular letter are discussed below:

Capture the Reader’s Attention/Attractiveness

The most crucial feature of a circular letter is its ability to capture the reader’s attention. It should be attractive in all aspects to maintain the reader’s interest throughout the message.

Introduce the Product or Idea

The content of the circular letter should introduce the product or idea that it aims to convey to the masses to elicit a favorable response.

Explain the Benefits to the Reader

Another characteristic of a circular letter is that it should explain to the reader the benefits they will gain. This will motivate them to take action in favor of the organization.

Provide Evidence to Support Value to the Reader and Others

A circular letter must present evidence supporting the value of the product or idea to the reader and others. Authentic documentation or references are essential for a responsive circular letter.

Call for Action

Circular letters should prompt the reader to take immediate action to receive the benefit or to give considerable thought to the idea. Therefore, every circular letter includes an assertive call for action.


Courtesy is an essential virtue in every business communication, including circular letters. The message must be conveyed in a courteous manner, following the principles of courtesy.


Circular letters are read by people of all ages, so they should be written in a way and language that everyone can understand and appreciate, without feeling discriminated against or humiliated.

Persuasive Language

Circular letters are inherently persuasive, so their language must be convincing and compelling.


Facts and information presented in a circular letter must be authentic and supported by evidence so that people can rely on it and take action without hesitation.

Wide Circulation

Circular letters are widely circulated among a large number of people, making them a form of mass communication.

Definite Purpose

Each circular letter is written for a specific purpose and should not contain more than one objective.

Distinct Art of Writing

Circular letters require a distinct style of writing, as they serve as both a letter and a mass communication tool, addressing various types of customers.

Distinct/Special Structure

The structure of a circular letter is unique, resembling a letter but containing specific styles or symbols not typically found in ordinary correspondence. Thus, it necessitates a special structure.


Circular letters are business communications and should be concise yet comprehensive. The principles of conciseness and completeness should guide their composition.

7 Importance of Circular Letter

Competition is inevitable today in every sphere of business, especially after opening up our economy to others. An open economy provides opportunities for our businesses to enter foreign markets and for foreign businesses to enter ours.

Furthermore, the domestic market is becoming increasingly competitive day by day, with skilled entrepreneurs entering the business field. They create a new competitive landscape that is not easy for everyone to navigate.

Therefore, winning the market and the hearts of customers is an essential effort for every business, regardless of its size.

In this context, circular letters have become an effective tool in the battle for competition today. The following will detail the significance of such letters in today’s business environment:

Economical Publicity Tool

Circular letters are one of the most cost-effective publicity tools. They require minimal expenditure compared to other mass media advertising methods, making them a popular choice in the business community.

Easy Publicity Medium

Circular letters do not necessitate formalities or contracts with advertising agencies. Anyone can draft a circular letter, have it printed, and distribute it to the public through various means. This ease of publicity makes circular letters a convenient choice.

Labor-Saving Device

Circular letters save a significant amount of time and effort for a company. They can reach a large audience quickly and efficiently, which would be a costly and labor-intensive process with other advertising methods.

Widespread Reach

Circular letters disseminate a company’s message to every corner of the area, reaching a diverse audience regardless of their place of residence. However, this form of communication is effective only for literate individuals.

Prompt Product Publicity

Circular letters swiftly convey product information to a large number of people, leading to quick responses from potential customers.

Business/Market Expansion Tool

Circular letters are effective tools for expanding businesses or markets by providing comprehensive product information to a wide audience. This enables people to make informed purchasing decisions.

Beneficial to Both Buyers and Sellers

Circular letters benefit both buyers and sellers. They provide buyers with valuable information for making effective purchasing decisions while indirectly increasing sales for the firm.

Samples of Circular Letter

Establishment of New Branch

Smith & Sons Financial Services
15, Avenida da Liberdade
Lisbon – 1200
Phone: +351 21 789 4567

June 10, 2005

Dear Valued Clients,

We are thrilled to announce the establishment of our new branch right in the heart of the bustling business district of Alameda Central. The new branch will commence its operations on July 1st, 2005, and we are excited to bring our full range of banking services closer to you.

At Smith & Sons Financial Services, we believe in progress, convenience, and excellence. Our mission is to provide you with prompt and reliable banking services while ensuring your complete satisfaction. With the opening of our new branch, we are one step closer to achieving that goal.

What Sets Us Apart:

  • Modern Banking: Our Alameda Central branch is fully computerized, equipped with cutting-edge technology to serve you efficiently.
  • Customer-Centric Approach: Your satisfaction is our top priority. We strive to offer a hassle-free banking experience tailored to your needs.
  • Comfort and Convenience: Our branch boasts a fully air-conditioned environment, ensuring your comfort during your visits.
  • Export Support: In line with our commitment to customer protection, we have implemented a guaranteed export support system exclusively for export-oriented businesses.
  • Electronic Banking: In today’s interconnected world, we offer a wide range of electronic transfer facilities to cater to your global financial needs.

Our team of qualified, well-trained, and experienced bankers is ready to assist you with the utmost professionalism and dedication. We look forward to serving all your banking requirements promptly and efficiently.

We invite you to visit our new branch and become a valued client of Smith & Sons Financial Services. Open an account and experience modern banking with a difference. Our goal is to make your financial journey smoother and more convenient.

May your fortunes and prosperity multiply, and may we have the privilege of being your financial partner in the growing economy of Portugal. Let us be a part of your financial success story.

Thank you for your continued trust and support.

Yours sincerely,

Sir Edward James Worthington
Branch Manager
Smith & Sons Financial Services
Alameda Central Branch

Establishment of New Business

Smith & Sons Retail Ventures
37, Avenida da Liberdade
Lisbon – 1250

Dear Residents,

We are delighted to announce the grand opening of our new retail grocery store on Friday, June 3rd, 2005.

We are pleased to introduce Mr. Alexander Montgomery as the store manager. With 15 years of experience in the industry, Mr. Montgomery brings a wealth of knowledge and expertise to ensure that the products we offer are of the highest quality and competitively priced.

Our new store will open its doors at 0800 hours on Friday, June 1st, marking the beginning of a new shopping experience in our community. To celebrate this special occasion, we are offering an exclusive 10% discount on all purchases made by our valued customers on the first day of operation. We sincerely hope to welcome you as one of our first-day customers.

At Smith & Sons Retail Ventures, we are committed to providing you with a wide range of quality groceries and a convenient shopping environment. We are dedicated to meeting your needs and ensuring your satisfaction.

We look forward to serving you and becoming your preferred choice for grocery shopping in our neighborhood. Your support means the world to us, and we can’t wait to embark on this exciting journey together.

Thank you for your anticipated patronage and trust in Smith & Sons Retail Ventures.


Sir Benjamin Alexander Worthington
General Manager (Marketing)
Smith & Sons Retail Ventures