Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Marketing

Question:

Read the following case study and answer question.

Sumit and Rachit are running a company processing coffee powder with a unique name 'Mad over Coffee'. It has a widely established market because of its excellent quality and distinct flavours. They don't have too many competitors in the market. As a result, they are in a position to keep the price of their products high. But the company is not providing after sales service. It doesn't take feedback from its customers. They soon realised this and bounced back. They appointed Raghav, a young energetic, as marketing manager. Raghav suggested diversification and expansion of staff. They added new flavours to their existing product range. They also ventured into tea processing, cocoa powder, and protein mix.

For this, he estimated the additional manpower requirement and finally after completing the staffing process, he managed to get a good team of sales personnel. He modified their packaging, making it more attractive and reusable. They started providing more details about their products on their labels. To promote their sales they started offering extra quantity (20% extra) in each pack.

A variety of programmes were designed by him to promote or protect the company's image and its individual products in the eyes of public.

They started advertising their products on TV and Social media.

To promote their sales, they started offering extra quantity in each pack. Identify the promotional tool under which such short term incentives are offered.

Options:

Advertising

Sales Promotion

Personal Selling

Public Relations

Correct Answer:

Sales Promotion

Explanation:

The correct answer is option (2) : Sales Promotion

(2) Sales Promotion

• Sales promotion involves various activities and incentives aimed at stimulating sales in the short term. Offering extra quantity in a product pack is a common sales promotion technique to encourage customers to make a purchase.

Advertising (1):

• Advertising involves creating and placing paid promotional messages or content through various media channels to inform and persuade a target audience about a product or service.

Personal Selling (3):

• Personal selling is a one-on-one interaction between a salesperson and a potential customer. It allows for a direct, personal approach to persuade the customer to make a purchase.

Public Relations (4):

• Public relations involve managing an organization's image and reputation with the public and media. It often includes activities like press releases, media coverage, and events to build a positive public imaqe.