Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

Read the passage carefully and answer the questions.

A company called "EcoTech Appliances" has recently launched a new line of eco-friendly home appliances designed to help consumers save energy and reduce their carbon footprint.

Marketing Strategies used by the Company:

1. The company has developed eco-friendly appliances with energy-efficient features and environmentally sustainable materials. The product is priced slightly higher than regular appliances but is positioned as a long-term investment in sustainability.

2. Eco Tech has adopted a premium skimming pricing strategy for eco-friendly appliances, positioning them as high-quality, sustainable products.

3. The products are available on both online and offline channels, including large retail stores and the company's e-commerce website.

4. EcoTech employs various promotional tools to create awareness and persuade customers to buy their products:

  • -The company runs TV and digital ads showcasing the energy-saving benefits of their appliances and their commitment to sustainability.
  • -Sales representatives are trained to interact with customers in retail stores, explaining the benefits of the products and offering personalized recommendations based on individual needs.
  • -Eco Tech has garnered attention from environmental organizations and media outlets due to their focus on eco-friendly products, resulting in positive press coverage and word-of-mouth promotion.

What is the main advantage of using personal selling in EcoTech's promotional strategy?

Options:

It helps in creating awareness on a large scale

It involves direct communication with potential customers to address their individual needs

It increases the amount of publicity for the brand

It offers discounts on products

Correct Answer:

It involves direct communication with potential customers to address their individual needs

Explanation:

The correct answer is option 2- It involves direct communication with potential customers to address their individual needs.

Personal selling is a promotional strategy where sales representatives interact directly with customers to explain product features and benefits. In EcoTech's case, trained staff in retail stores offer personalized recommendations based on the customer's individual needs, which helps in building trust, addressing specific questions or concerns, demonstrating product value effectively. This is more effective for high-involvement products like appliances, where customers often need guidance before purchasing.