213.0 x 276.

0 mm

• status – individuals, couples, groups, families with

LO1 Understand who customers children

1.1 Different types of customers

• other – culture, ethics and religion.
are and their importance to 2 Location:
businesses P1 P2 P3 M1 D1 • local area
• wider city/town
GETTING STARTED • urban
• rural
(20 minutes) • other parts of the country
Working in small groups, select a business in your • other parts of the world.
local area. Discuss the types of customers who visit 3 Service access requirements:
the business you have chosen, and identify the goods
• weekdays
or services they may wish to purchase.
• weekends
• seasonal
• term times
1.1 Different types of customers • school holiday periods
Customers are the most important people in any • before 9 am
business. They allow an organisation to achieve its • after 5.30 pm
business aims and objectives. • mornings
• lunchtimes
External and internal customers • afternoons
There are two main types of customer. These are: • evenings.
1 external customers who come from outside of the 4 Travel:
business providing a product or service • car
2 internal customers who are in the same organisation • van
as the person who is providing a product or service. • bus
• train
• tram
KEY TERMS • taxi
External customers – those who do not belong to • on foot
the business but conduct a transaction with the • bicycle
business to purchase its products or services, e.g. • motorbike.
a customer visiting a supermarket. 5 Method of communication:
Internal customers – a member of a business • face to face
or organisation who relies on others within the • in writing
business to do their job, e.g. an employee is an • telephone
internal customer of the IT function.
• online.
6 Behaviour and demeanour:
Most businesses will have a mixture of internal and
• demanding/undemanding
external customers. Regardless of the type of customer,
• patient/impatient
a number of characteristics apply to all customers,
• confused
including those listed below.
• unsure
1 Demographics: • familiar/unfamiliar with the
• gender – male/female product/service
• age – pre-school children, school children, • aggressive
teenagers, young adults, middle-aged adults, • assertive
elderly people • specialist knowledge.

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Potential/new customers
These customers will allow the business to expand and
diversify into new markets. Once the new customer has
purchased a product or service the business should try
to retain them.

PAIRS ACTIVITY
(30 minutes)
Working in pairs, use the list above to consider the
types of customers the businesses listed in Table
4.1 may encounter, and the characteristics of these
customers. The first one has been completed for you.

▲ Figure 4.1 Customers are individuals with different needs

1.2 What influences customer
Table 4.1 Customer types and characteristics behaviour?
There are a number of things that influence a
Type of business Type of customers and their
characteristics customer’s behaviour when sourcing and purchasing
goods and services. Some of these are described below.
Local hairdressing salon Females
Young adults
Middle-aged adults Customer needs and expectations
Elderly people Customer needs and expectations are important
Car factors in influencing customer behaviour – for example,
Bus
individuals who expect businesses and products and
Walk
Individual customers services to be environmental and ethically friendly may
Face to face spend time researching energy efficiency ratings before
From the local area purchasing new white goods for the home.
Tourist information
centre
KEY TERMS
Local bank Customer needs – the solutions to problems that
a customer is aiming to solve with the use of the
Call centre product or service.
Builder’s merchant Customer expectations – the perceived value a
customer will gain from the purchase of a product
In addition to internal and external customers, or service.
businesses will come into contact with other customer
UNIT 4 CUSTOMERS AND COMMUNICATION

groups. Customer demographics

For example, the age of the customer will affect their
Returning customers
behaviour – a young person is more likely to use online
These form the backbone of selling. Repeat or returning
shopping than an elderly person. Individuals on a low
customers will help to provide revenue and certainty for
income are likely to purchase from budget ranges, whereas
the business.
high earners are more willing to purchase premium brands.
One-off customers Cultural differences
These are people who purchase an item or service
People from different places or ethnic origins may look
only once from a business. This can be because
for different products or services, or have different
the customer does not live in the same area as the
expectations. For example, someone of a particular
business, the purchase is required only once or the
ethnic origin may shop for certain ingredients at a
customer prefers a competitor’s product.
specialist supermarket or online provider.

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customer loyalty, inform existing customers of
new products, educate them on new initiatives and
potentially provoke a response.
1.4 Why customer service is
important
Effective customer service is often seen as a ‘unique
selling point’ for a business and can ensure business
survival in the longer term. Research from many
businesses has shown that effective customer service
will lead to:
● a competitive advantage over similar businesses
that don’t offer such good customer service; the
business is more likely to succeed in the business
environment
● public- and third-sector organisations (see Unit
1, LO1.2, page 2) providing the best value for the
money that has been invested; as a public- or third-
sector organisation is funded from public money or
donations, the trustees have a responsibility to spend
this money wisely, with specific aims and objectives
LO1 assessment activities
Below are suggested assessment activities that have
been directly linked to the Pass, Merit and Distinction
criteria in LO1 to help with assignment preparation.
These are followed by top tips on how to achieve the
best results.
Activity 1 Pass criteria P1 P2 P3
Choose a business in the local area for which you already
have knowledge of its operations and customer base.
UNIT 4 CUSTOMERS AND COMMUNICATION
Then write your answers to the following questions.
P1 Using your chosen business, explain who its
customers are and what influences their behaviour
when using the business.
P2 Describe any actions it has taken in response to the
differing needs of its customers.
P3 Explain the range of customer services provided
and, giving examples, show how each area of the
business has responded to the requirement of providing
customer service.
110
● an increase in public image and reputation
● higher customer numbers, greater customer diversity
and improved customer loyalty
● satisfied customers who make repeat purchases
and recommend the product or service to family
and friends; this may lead to an increase in ‘word of
mouth’ sales
● increased sales, and therefore the possibility of
increasing profits and market share
● increased job satisfaction and motivation for the
workforce.
KNOW IT
1 State two types of business customer.
2 Explain the difference between customer needs
and customer expectations.
3 Suggest how a supermarket may respond and
adapt its operations to meet the differing needs of
its customers.
4 Describe the range of customer services that are
provided by a hotel.
5 Analyse why customer service is important to
business success.
TOP TIPS
4 Check with your tutor that your business choice is
suitable.
4 Ensure your choice of business gives you
appropriate opportunities to meet the
requirements of P1.
4 Spend equal time and produce similar amounts of
evidence for each of the pass criteria.
Activity 2 Merit criteria M1
M1 Reflect on the work you have produced for P3. Using
the business you have chosen and studied, analyse
the benefits to the business and to its customers of
maintaining and developing customer service.
TOP TIPS
4 Ensure you are focusing on both the business
and its customers.
4 You can present your response in one or more
format, e.g. in an assignment, in a recorded
discussion, as a presentation to the rest of the group.
4 Ensure you provide detailed evidence that meets
the command verb ‘analyse’.
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Activity 3 Distinction criteria D1 TOP TIPS

2.1 Audience requirements

D1 Using your chosen business, prepare a report for
its senior management that recommends and justifies
changes to its customer service to improve the
customer experience.
4 Ensure you understand the requirements for a
business report.
4 Ensure the business you are using has
sufficient scope for you to make suitable
recommendations.
4 Give practical recommendations, with examples
where appropriate.

l age

LO2 Understand how to l gender

l special needs
communicate with customers P4 P5 M2 l accessibility

GETTING STARTED l knowledge

l customer type (e.g. internal or external customer).
(10 minutes) The questions in Table 4.2 would apply to verbal, non-
Carry out some research to find examples of how a verbal and written communication methods, as well as
business communicates with its customers when media advertisements.
providing customer services.
Table 4.2 Questions to ask when planning communications
Communication skills are a person’s ability to process,
receive and send information. When communicating in a Verbal Can the audience see and hear?
communication Is the audience comfortable?
business setting, individuals need to consider a range of
(e.g. meetings, Is there sufficient seating?
styles and methods that meet the communication needs business Is the temperature in the room appropriate?
of their customers, including verbal and non-verbal presentations, Are refreshments available?
communication skills. By using these effectively, interviews) Is there a need to consider cultural
staff will build positive and potentially profitable differences in the audience?
business relationships. Are all issues addressed?
Non-verbal Are facial expressions welcoming and
communication friendly?
2.1 Audience requirements (e.g. meetings, Do gestures support verbal
An instant image when seeing the word ‘audience’ is business communication?
presentations) Is there an appropriate level of eye
a group of people listening to music at a concert or
contact with the audience?
attending a theatre performance. In a business context, Is the presenter’s posture relaxed?
however, ‘audience’ has a much broader meaning. Is the presenter showing respect to the
audience?
What is an audience? Is the presenter’s dress appropriate and in
In previous units, you will have considered the idea of accordance with any cultural differences?
stakeholders: those with an interest in an organisation Written Is the intended recipient identified for
or who are affected by what it does. At a local sandwich communication contact?
(e.g. sales Is the recipient addressed appropriately?
shop, the customers who buy the sandwiches, the
letters, email Is the message clear and easy to
employees in the shop, and the bakeries, butchers and newsletters) understand?
farmers who supply the shop with its raw materials are Is the content focused on topics of
all types of audience. interest to the recipient?
Media Is the message short and concise?
Audience requirements advertisement If appropriate, are the details of the
Irrespective of the method or style of communication, (e.g. magazine product and price clear and easy to
it is vital to show awareness of your audience. When ad, TV ad) understand?
Are terms and conditions or any offers
planning your communication method, you need to stated clearly?
consider the following in relation to your customers:
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PAIRS ACTIVITY INDIVIDUAL ACTIVITY

(30 minutes)
Working in pairs, choose a job advertisement from
the internet, in a magazine or newspaper. Analyse the
advert and assess whether or not the form, style and
layout meet the needs of a person thinking of applying
for the job.
(10 minutes)
Working individually and considering your school or
college, identify one communication method and explain
how this highlights the corporate standards of your
school or college.

2.3 The advantages and

2.2 Purposes of communication in disadvantages of various forms of
business situations communication
Before selecting the type of communication, a business There are a number of advantages and disadvantages
needs to identify its purpose. There are five main of different forms of communication that need to
purposes: be considered (Table 4.3). These are of particular
1 to inform – for example, staff or customers about importance when considering the purpose, content and
new products or inform staff of changes to working audience of a business message.
conditions
2 to confirm – for example, arrangements for a staff
meeting or a product delivery to a customer
3 to promote – for example, a particular product or
service to a selected customer group
4 to make a request – for example, for information or
data
5 to instruct – for example, a group of workers on the
process of completing a particular task.
If the purpose is not clearly identified, the business
risks damaging relationships with staff, customers
and the general public. For example, recipients of a
monthly email newsletter with no specific purpose or
information could be irritated by it wasting their time ▲ Figure 4.3 Consider the purpose, content and audience of a
and associate that business with ‘junk’ email. business message when choosing how you will communicate it

Table 4.3 Advantages and disadvantages of different communication channels

UNIT 4 CUSTOMERS AND COMMUNICATION

Communication Advantages Disadvantages

method
Face to face Preferred communication channel if clarity of the
message is the main aim
Allows for interaction between all parties
Enables discussions to take place
Uses non-verbal gestures such as facial
expressions, eye contact and body language
Conflict could become more heated and emotional
in a face-to-face environment
Tension and stress is more evident in face-to-face
communication than in remote interactions
Some people may prefer to write down what they
want to say rather than having to respond verbally
straight away
If they are using a second language, the individual
may require time to understand the conversation

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l endorsements
l sponsorship.
Each business has its own corporate standards that
ensure consistency and high-quality communication.
They relate to things like those listed below.
l Colour schemes: to ensure a business and its
communications can be easily identified, a business will
have a corporate colour scheme that will be used across
all business documents. For example, Sainsbury’s uses
orange and Marks & Spencer uses green.
l Writing guides for letters, reports and leaflets: standard
letters may be sent in response to a complaint or
standard enquiry. A writing guide will ensure corporate
consistency and will aid quality control.
l House styles: for example, details of preferred
spellings, font style, font size and paragraph layout.
l Version control: to ensure everyone using a document
is certain they are using the most up-to-date version,
businesses may name and label documents with a
version number, e.g. v1, v2.
2.6 The importance of managing
corporate profile through media
activity
A business should manage its corporate profile,
particularly through media activities. On television or
the radio, its corporate image and profile need to be
LO2 assessment activity
Below is a suggested assessment activity that has been
directly linked to the Pass and Merit criteria in LO2 to
help with assignment preparation. This is followed by
top tips on how to achieve the best results.
Activity 1 Pass criteria P4 and P5
You will be supplied with a range of different
communications illustrating corporate standards. These
could be communications from your school or college
and include its website, prospectus, subject leaflets,
application forms, job descriptions, letters to parents,
etc. Produce your written work in report format to
present to your head teacher.
controlled and not misrepresented. Some businesses
restrict the media they are willing to work with, and
2.6 The importance of managing corporate profile through media activity
many train their senior staff in giving interviews and
presenting themselves on TV or radio. They may also
have a media spokesperson who appears on the media
when there is an important announcement or issue.
This attempts to ensure the business’s reputation isn’t
damaged by a staff member saying the wrong thing.
GROUP ACTIVITY
(1 hour)
Working in small groups, choose three large national
businesses. Research the corporate image that these
businesses portray to their stakeholders and how it is
achieved. Produce a short presentation illustrating the
corporate image of each business.
KNOW IT
1 Define the term ‘audience’.
2 Describe three purposes of business
communication.
3 Explain the benefits of using ‘face to face’
communication.
4 State the advantages and disadvantages of using
email for business communication.
5 Explain the importance of using version control
and corporate colour schemes when preparing
business communication.
P4 Based on the communication material you have
been given, assess whether or not the form, style
and layout is suitable for the intended audience and
purpose.
P5 Using your school or college as a case study,
summarise its corporate standards and corporate
profile. Explain the importance of these standards and
profile to your school or college.
TOP TIPS
4 The communication types you receive should be
sufficient to give you appropriate opportunities
to meet the requirements of P4.
4 You should spend equal time and produce
similar amounts of evidence for each of the
pass criteria.
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We know that we pick up important information
from other people by noticing these non-verbal
communication cues or signals. It is very useful to
develop the skill of reading these signals. As other
people will read our non-verbal cues and signals, we
need to be aware of the signals we give.
We also need to consider cultural differences when
considering non-verbal communication. For example, in
some cultures making relaxed eye contact is considered
a positive trait, showing interest and warmth, whereas
in others eye contact is not welcomed. In fact, choice of
clothing can sometimes prevent the eyes being seen at all.
Business success means getting it right first time. The
main objective as an effective communicator is to be
understood.
PAIRS ACTIVITY
(40 minutes)
Working in pairs, prepare short role plays that
illustrate how a person’s body language demonstrates
the following feelings and moods:
1 upset
2 happy
3 uninterested
4 annoyed
5 nervous.
3.2 Verbal skills
Effective verbal communication relies on a number
of factors, including non-verbal communication cues,
listening skills and clarification. Individuals need to
ensure they speak clearly, remain calm, focus on the
conversations and are polite when communicating
verbally with another person.
There are a number of important aspects and skills that
are required when holding a verbal conversation with
another person.
Tone and pace
This refers to the strength of a vocal sound made by a
person in a communication or situation, and how fast
they speak.
Clarifying
This is the process of ensuring that the message you
have received has been understood. It allows you
to gain feedback and question any points you have
misunderstood.
Giving compliments, and avoiding and
responding to criticism
3.2 Verbal skills
Compliments are positive and appreciated by the other
person, making them more likely to lead to successful
business deals. Conversely, criticism of the other
person has the potential to offend and the customer
may go elsewhere. If the other person criticises you, it
is professional to accept the criticism and not allow the
conversation to lead to an argument. Keep calm and
don’t take it personally.
Opening and initiating a conversation
First impressions have a significant impact on the
success of further communication. Formalities,
in accordance with customs, will be expected.
These may include a handshake, introduction by
name, eye contact, etc. In a group situation or at
a business training event, organisers may use ice
breakers to allow all group members to get to know
one another.
KEY TERM
Ice breakers – activities used to introduce individuals
to one another.
Questioning
Effective questioning can influence the conversation
and, in business transactions, can mean the difference
between success and failure. Questioning should be
used to obtain information, check understanding,
involve a person in a conversation, show interest in
another individual and seek agreement. Successful
conversations will use open and closed questions,
where open questions allow a more in-depth
conversation and closed questions tend to lead to a
‘yes’, ‘no’ or one-word response.
KEY TERM
Questioning – a method of seeking information that
requires a response.
Closing a conversation
When ending a business conversation, it is good practice
to briefly summarise the main points that have been
discussed. The way in which a conversation is closed
usually determines how it will be remembered. People
will remember the non-verbal signals as well as the
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Table 4.4 Communication survey

When communicating with another Always Frequently Occasionally Rarely Never
person and listening to them, I tend to:

recap/reflect on what has

been said

understand any instructions given

interpret any requirements for a task

make notes

confirm that I have understood

seek clarification when necessary

words that were spoken. It is good practice to maintain
eye contact, avoid looking at your watch or a clock,
remain facing the other person (it is seen as ill mannered
to turn your back), if appropriate make arrangements
for a further meeting and close the conversation with a
socially acceptable gesture, such as a handshake.
Addressing customers by name using
appropriate convention
In a business situation, address a customer by name
and demonstrate you have a working knowledge of
their requirements. For example, in a formal situation,
or with older customers, Mr, Mrs or Ms may be most
appropriate. In less formal situations, using their first
name may be acceptable but this needs to be checked
with them first.
l Interpretthe requirements of the tasks you have been
set by asking questions if necessary.
l Probe for any missing information.
l Make suitable notes if you need to.
l Give yourself time for personal reflection.
l Seek clarification of anything you’re not sure about.
l Remember the important points of the message.
PAIRS ACTIVITY
(25 minutes)
Complete the survey in Table 4.4 as honestly as
possible. Once you have completed it, ask one of your
peers to review your responses and give you feedback
on your skills. Work on developing any skills that you
need to improve and then complete the survey again to
demonstrate how you have improved.

3.3 Listening skills

Research has shown that we spend 70 per cent of our Active listening
time communicating with other people. Of this time, we Active listening is a technique in which the listener
UNIT 4 CUSTOMERS AND COMMUNICATION

spend: focuses on the words of the speaker and restates them to

ensure the meaning is clear to both speaker and listener.
l 16 per cent reading
Active listening is often used in situations where there
l 9per cent writing
are disagreements and conflicts. This approach will ease
l 30 per cent talking
misunderstanding and improve personal relationships.
l 45 per cent listening.
In business, listening is an important part of the
Listening can be seen to be the most vital part of any
communication process. In practising active listening
communication activity we take part in.
the goal is to learn what the speaker has said.
Key listening tips There are five key steps in the active listening process,
l Paraphrase the message to confirm you understand. as follows.
l Repeat the message and recap to help you remember
1 Ensure you give your whole attention to the speaker,
the key points.
without any distractions.
l Understand instructions that have been given to you.
2 Put aside your own opinions, experiences and
emotions.

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3 Listen with your eyes as well as your ears, to ensure
you pick up any non-verbal communication cues.
4 Thank the speaker and acknowledge the contribution
they have made.
5 Repeat what has been said in your own words, to
confirm that your understanding is correct.
LO3 assessment activities
Below are suggested assessment activities that have
been directly linked to the Pass and Merit criteria
in LO4 to help with assignment preparation. These
are followed by top tips on how to achieve the best
results.
Activity 1 Pass criteria P6 and P7
Participate in a role play, taking the role of the
supervisor in a local supermarket. Your tutor or other
person will act as a customer who is demanding a
refund for a product they have purchased.
TOP TIPS
4 Ensure the role play gives you appropriate
opportunities to demonstrate your verbal and non-
verbal communication skills.
4 Ensure someone who is not another learner acts
as the customer.
4 Each role play should last approximately three to
five minutes. It would be good practice to record
or video these for evidence. If this is not possible,
a detailed individualised witness testimony should
be provided.
4 For P7, take the opportunity to present your
response in one or more of a variety of formats,
e.g. in an assignment, in a recorded discussion, as
a presentation to the rest of the group.
LO4 Be able to convey messages
for business purposes P8 P9 M4 D2
GETTING STARTED
(20 minutes)
In small groups, produce a mind-map of different
types of verbal and written communications in which a
business can convey messages – for example, emails.
KNOW IT
4.1 How messages can be structured to convey messages
1 Describe four non-verbal skills.
2 Explain the difference between implicit and explicit
communication.
3 Identify five key listening skills and apply them to
building a rapport with specific customers.
4 Explain the importance of questioning.
5 Describe the term ‘active listening’.
P6 Demonstrate your non-verbal and verbal
communication skills when responding to the customer
complaint.
P7 Considering the role play you have completed,
explain the importance of listening skills in building a
rapport with customers.
Activity 2 Merit criteria M3
M3 Carry out a review of your non-verbal and verbal
skills from the role play, suggesting improvements you
would make. Consider your ability to:
l reflect on other people’s comments
l confirm your understanding
l confirm understanding if there is any ambiguity
l make a relevant contribution to the conversation
l listen to others
l use and read appropriate body language
l act sensitively
l respond appropriately
l portray a professional image.
TOP TIPS
4 Take the opportunity to review your performance
by getting feedback from your tutor or other group
members, or by reviewing recorded evidence.
4 Ensure you provide detailed evidence that reviews
your skills, and suggest improvements for the
future.
4.1 How messages can be
structured to convey messages
Business information that is being conveyed to other
people is usually structured in a formal manner. This
may include the production of business reports, emails,
notices or newsletters. Whatever the format of the
message, it is the content that ensures the successful
transfer of information. In general, messages are
structured as follows.
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l Introduction: sets out who the message is to and Planned discussions

from, key topics to be discussed and, if appropriate, a
Planned discussions are usually categorised in two
title, heading or subject line.
ways. The discussion can occur either with people that
l Body of message: the main content that needs to be
you are familiar with or with people that you do not know.
delivered to the recipient.
l Summary: a recap of the key points. Examples of these discussions will include the
l Conclusion: any next steps, action points, following.
recommendations and proposals; it is the conclusion
l One-to-one meetings when shopping for goods
that most people refer back to when reviewing the
or services – this could be a discussion with a
message later.
hairdresser or dentist that you have used for many
l Invite/seek questions: invite the reader to ask
years and are familiar with, or someone at the
questions if required, or the sender may seek
supermarket who you ask for product details.
questions to clarify points.
l Interviews – these are often part of any formal
l Frequently asked questions (FAQs): this prevents
stakeholders asking the same questions repeatedly recruitment process. A certain amount of preparation is
and provides them with an information source. required as you are unlikely to know the people who will
be conducting the interview. Basic guidelines include:
4.2 Types of verbal and written a ensure you know where you need to be and at what
time; it is imperative to be on time
business communications b consider the other people you may meet – the
Verbal communications receptionist, car park attendant, etc.
c try to calm any nervousness through focusing on
Presentations your breathing
The common fear of doing a presentation can be reduced d see yourself as positive and welcoming when you
with careful preparation. Ideally, a presentation should enter the interview room
tell a story with a start, middle and end. The presenter e ensure you have prepared a list of examples of your
is the storyteller, and needs to ensure the delivery is knowledge and skills
interesting and carefully expressed. It is often useful to f prepare questions to ask the interviewer.
think of the presentation as an extension of a one-to-one
meeting. In reality, you are still speaking to individuals,
it is just that there are several individuals in the room
at the same time. Here are four useful questions to ask
yourself when preparing a presentation:
1 Why should or would people want to listen to me?
2 How will I know whether my presentation has been
successful?
3 What resources will help me engage with the
UNIT 4 CUSTOMERS AND COMMUNICATION

audience and tell them my ‘story’?

4 What can I do so that I feel confident and prepared?

PAIRS ACTIVITY
(45 minutes)
You and your colleague work for a stationery business
and you have been asked by your manager to carry out
a sales presentation on the stationery you can provide ▲ Figure 4.4 It is best to be well prepared for interviews
for local companies. You are free to choose the range
of stationery available. l Meeting with a colleague – you are likely to know your
Considering the four questions above, prepare a plan for colleague well, so try to keep the meeting business-
presenting to local businesses. Review the effectiveness like. You should focus on co-operation and business
of the structure of your planned presentation to convey objectives.
the relevant message to the local companies. l Telephone conversations – although this is a
convenient method of verbal communication, some

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meaning may be lost due to a lack of non-verbal people need to prepare for such meetings, and to

4.2 Types of verbal and written business communications

cues. Basic guidelines are:
a speak calmly and clearly to ensure you are
understood
b use a warm and welcoming tone of voice
c remain polite at all times throughout the
conversation
d do not eat, drink or chew when you are on the
telephone
e avoid holding another conversation with someone
in the same room at the same time as talking on
the telephone.
● Participating in an appraisal – many organisations
will ask their employees to participate in an
annual appraisal. The person completing the
appraisal may or may not be known to the
employee. These meetings are confidential and
offer one-to-one discussions and feedback. Both
be honest and constructive in their discussions.
Giving feedback to the employee involves focusing
on behaviour and outcomes leading to learning
and improvement. You need to listen carefully and
ask for clarification if needed. You should then
take time to reflect before you contest anything
that may have been said.
Written communications
Although we are in an electronic age, businesses still
rely on written communication as the main method
of communicating with their stakeholders. There
are a number of forms of written communication
(Table 4.5), many of which provide a formal means of
communicating with other people

Table 4.5 Types of written communication – their uses, effectiveness and alternatives
Type of written Use Effectiveness Alternatives
communication
Letters Usually used for external, formal Keeps a clear record of the Email
communication with customers, communication made and can be Face-to-face meeting
shareholders and other used in the case of a dispute
Telephone
stakeholders
conversation
Social media Used for internal and external Widely available, and most people Email
communication on an informal currently regularly read and keep Notice
basis up to date with feeds
Newsletter
May not be effective for older
stakeholders
Websites Provides formal and informal Very effective if user friendly and Social media
information to internal and external kept up to date with the information Advertisement
stakeholders of a business that stakeholders require. Notice
Emails Usually sent to internal and Very effective due to the speed with Letter
external stakeholders which they can be sent and received Notice
Can contain formal and informal Can have attachments containing Social media
business information data and images
Notices Used for internal informal Stakeholders need to check the Email
information to all interested notice location regularly Social media
people
Often more personal than
business-like in structure
Newsletter Provides informal information, Effective if produced regularly and if Email
usually to an internal audience, all stakeholders read it Social media
but also to regular external
customers
Provides information on news,
relevant articles and notices

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LO5 Know the constraints and
issues which affect the sharing,
storing and use of information for
business communications P10
GETTING STARTED
(15 minutes)
Working with a partner and using your current
knowledge only, define the following terms:
1 copyright
2 patent
3 trademark.
Be prepared to share your definitions with the rest of
the group.
Whenever a business produces communications for
either internal or external purposes it must ensure that
it appreciates the constraints and issues that affect the
production, sharing, storing and use of this information.
5.1 Legal constraints
Many legal constraints affect the way businesses use
information; some examples are shown in Figure 4.5.
UNIT 4 CUSTOMERS AND COMMUNICATION
KEY TERMS
GDPR – General Data Protection Regulation is a legal
framework with guidelines about the collection
and processing of personal information from
individuals
Intellectual property rights – the rights of the
creators of products or services and the way their
ideas and work are protected from being copied by
others
Copyright – legal right given to the creator of an
original work to control how their material is used
Data Protection Act – gives rights to those who
have information held about them by a company
or organisation, ensuring that this information is
appropriately managed
Freedom of Information Act – allows public access
to information held by public authorities
Whistle-blowing – the process of informing the
relevant authorities about a questionable business
activity
Confidentiality – not sharing personal details about
someone with others
Advertising Standards Agency – the UK’s
independent regulator of advertising across all
media

▲ Figure 4.5 Many constraints and issues affect the sharing, storing and use of information for business communications

124
213.0 x 276.0 mm
or by using the BCC line when sending an email to
several external stakeholders
l use of the internet – for example, by having an
intranet or internal online system with areas that only
approved people can access
l whistle-blowing – where an employee raises a
concern about a business practice; the concern can
be identified to management within the firm or to
someone outside (e.g. the press).
l staff handbooks, advising staff how they should
behave while at work, including instructing them on
how to deal with sensitive information
l contracts of employment outlining what staff
members’ roles should be.
Advertisement policies
A business will usually have clear guidance on its
policy for advertising. For example, when advertising
to children businesses need to ensure they are truthful
and socially responsible. They need to consider the
appropriateness of any images, pictures and text.
LO5 assessment activity
Below is a suggested assessment activity that has been
directly linked to the Pass criteria in LO5 to help with
assignment preparation. This is followed by top tips on
how to achieve the best results.
Activity 1 Pass criteria P10
P10 Businesses have to deal with a large volume
of information, in many different forms from a wide
range of sources. To ensure that a business operates
effectively, it must be able to handle this information
UNIT 4 CUSTOMERS AND COMMUNICATION
KNOW IT
1 Define the term ‘copyright’.
2 Explain the importance of the Data Protection Act.
3 Describe the role of the Advertising Standards
Authority.
4 Research where some businesses have broken the
Computer Misuse Act. Describe the situation and
what happened.
5 Explain a time when a business would need to
consider copyright.
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5.3 Security issues
A business needs to consider whether information will
be stored electronically or manually. To ensure secure
storage of all personal and business data, security
issues that will surround its sharing, storage and use
need to be addressed, including:
l monitoring of telephone and email communications
l confidentiality of personal data
l information storage
l backup policies and procedures
l the increasing levels and use of information technology
l operational and business costs.
INDEPENDENT RESEARCH ACTIVITY
(45 minutes)
Read the following online article: http://tinyurl.com/
h7ocd84
In pairs, discuss the content of the article and make
notes about the security issues from Talk Talk’s
perspective.
effectively. Prepare a factsheet for your school or
college that describes the legal constraints, ethical and
security issues faced by it in relation to the sharing and
storing of school or college communications.
TOP TIPS
4 Ensure you are given sufficient practical
information about the school or college to allow
you to complete the task.
4 Ensure you relate theory to practice and focus on
the school or college in your written work.
Read about it
Business Information at Work, by Michael Lowe, Europa
Publications, 1999
Corporate Communication, by Paul A. Argenti, Irwin
McGraw-Hill, 1998
Finding and Knowing: Psychology, Information and
Computers, by Claire Davies, Routledge, 2004
Web Design in a Nutshell: A Desktop Quick Reference, by
Jennifer Niederst, O’Reilly, 2001