Business Understanding and Commercial Awareness

Question 1

What is the ASA and what do they do?

Answer 1

Advertising Standards Authority - ASA is the UK’s independent advertising regulator. The primary role of the ASA is to make sure ads across the UK stick to the advertising rules.

Question 2

Adverts should be…?

Answer 2

Decent, Honest & truthful

Question 3

ASA enforce two codes. What are they?

Answer 3

Non-Broadcast Code and Broadcast Code

Question 4

What is a Creative Commons licence?

Answer 4

Creative Commons licenses give everyone from individual creators to large institutions a standardised way to grant the public permission to use their creative work under copyright law.

Question 5

What is a push strategy?

Answer 5

A Push Marketing Strategy also called push promotional strategy, where businesses attempt to take their products directly to the customers. In a Push marketing strategy, the goal is to use various marketing techniques or channels to ‘Push’ their products in order to be seen by the consumers starting at the point of purchase.

Question 6

What is a pull strategy?

Answer 6

A pull strategy is a marketing technique that involves attracting customers to a company’s product or service. Pull marketing is focused on creating demand for the product or service. It’s about providing an experience that will make people want to buy your product.

Question 7

What is Mass Marketing?

Answer 7

a marketing strategy in which a business decides to ignore market segment differences and appeal the whole market with one offer or one strategy, which supports the idea of broadcasting a message that will reach the largest number of people possible.

Question 8

Define MPS

Answer 8

MPS stands for Mailing Preference Service. This is a service designed to help individuals in the UK reduce the amount of unsolicited direct mail they receive. By registering with the MPS, people can opt out of receiving unwanted marketing materials, such as promotional mailings and catalogues, from companies and organisations.

Question 9

What is taken into consideration when segmenting your audience?

Answer 9

• Geographical factors
• Demographical factors
• Psychographic factors
• Behavioural factors

Question 10

What is the penalty for not complying with GDPR?

Answer 10

Fines of up to 20 million euros or 4% of turnover (which ever is greater)

Question 11

What is The Data Protection Act?

Answer 11

The Data Protection Act is the UK’s implementation of GDPR. It sets out the framework for data protection, regulating how personal data is used, stored, and processed to control how personal information is used by organisations.

Question 12

What falls under the Data Protection Act 2018?

Answer 12

1. Used fairly, lawfully and transparently
2. Used for specified, explicit purposes
3. Used in a way that is adequate, relevant and limited to only what is necessary
4. Accurate and, where necessary, kept up to date
5. Kept for no longer than is necessary
6. Handled in a way that ensures appropriate security, including protection against unlawful or unauthorised processing, access, loss, destruction or damage

Question 13

What is a business sector?

Answer 13

A business sector refers to a portion of the domestic economy where businesses acquire raw materials, sell finished products, and offer services

Question 14

What is a primary sector?

Answer 14

Our natural resources and raw materials > Agricultural, Farming, Fishing, Forestry, Mining

Question 15

What is a secondary sector?

Answer 15

Manufacturing raw goods and making new products/services > Car manufacturers, Food production, Building companies

Question 16

What is a tertiary sector?

Answer 16

Concerned with providing a service > Banks, Healthcare, Retail, Hairdressers, Supermarkets, Hotels/Restaurants

Question 17

What is a Quaternary Sector?

Answer 17

The quaternary sector is an economic area with primary services centred on research, information, and technology. High level education is needed to be within this sector > computer services, media, information and communication technology, consultancy, and research and development.

Question 18

What is a Quinary Sector?

Answer 18

The quinary sector is an important extension of the tertiary sector. It includes important organisation structures such as government organisations, public services, healthcare, and education. It also includes all the individuals who are responsible for decision-making in a society > federal, state, local governments, military service members, police service, healthcare professionals, education professionals, and community service professionals. Domestic-based employees such as home cleaning professionals, childcare professionals, and chefs are also included in the quinary sector.

Question 19

Define ‘Economy’

Answer 19

The word ‘economy’ describes how a country or place is doing in producing and making goods, and how much money it has.

Question 20

Define ‘Economics’

Answer 20

Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources.

Question 21

What is the public sector?

Answer 21

The public sector, also called the state sector, is the part of the economy composed of both public services and public enterprises. Not there to make a profit, paid for by tax payers e.g NHS and Police

Question 22

What is the third party sector?

Answer 22

The Third Party sector is not about making a profit but rather making a difference to society. Third sector organisations are categorised into: charities and community groups. social enterprises.

Question 22

What is the private sector?

Answer 22

The private sector is the part of the economy, sometimes referred to as the citizen sector, which is owned by private groups, usually as a means of establishment for profit, rather than being owned by the government.

Question 23

What is a Business Model Canvas?

Answer 23

A business model canvas contains a detailed one-page representation of a business strategy, vision and marketing ideas. This is typically centred around selling a specific product.

Question 24

What is a Lean Canvas Model?

Answer 24

A Lean Canvas is a one-page sketch of a business plan that focuses on business problems.

Question 25

What is the Growth Share Matrix?

Answer 25

The growth share matrix is, put simply, a portfolio management framework that helps companies decide how to prioritise their different businesses/products.

Question 26

What is the Star?

Answer 26

High Growth, High Share. Companies should significantly invest in these “stars” as they have high future potential.

Question 27

What is the Question mark?

Answer 27

High Growth, Low Share. Companies should invest in or discard these “question marks,” depending on their chances of becoming stars.

Question 28

What is the Cash Cow?

Answer 28

Low Growth, High Share. Companies should milk these “cash cows” for cash to reinvest.

Question 29

What is the Pet?

Answer 29

Low Share, Low Growth. Companies should liquidate, divest, or reposition these “pets.”

Question 30

What is a mission statement?

Answer 30

A mission statement is a short statement of why an organisation exists, what its overall goal is, the goal of its operations

Question 31

What is a vision statement?

Answer 31

A vision statement is a high-level statement of how a business is moving towards its end goal, which is their mission.

Question 32

What are company values?

Answer 32

Company values are a set of fundamental beliefs that help teams work toward a common business goal. These values are often related to business relationships/company culture, customer relationships, and company growth.