XYZ Electronics, a leading smartphone manufacturer, follows a well-defined marketing philosophy that focuses on customer satisfaction and innovation. The company believes in a market-oriented philosophy, where products are developed based on customer needs rather than merely pushing what they can produce.
To promote its latest smartphone model, XYZ Electronics uses a mix of advertising, personal selling, and public relations. The company invests heavily in online and television advertising, showcasing product features and customer testimonials. Additionally, XYZ’s sales representatives engage in personal selling at retail stores, offering demonstrations and explaining the benefits of the new phone to customers.
In terms of public relations, XYZ Electronics frequently organizes technology conferences, collaborates with influencers, and engages in corporate social responsibility (CSR) activities to maintain a positive brand image. The company also utilizes sales promotion tactics such as discounts, bundle deals, and limited-time offers to attract more customers.
When setting pricing, XYZ Electronics follows a value-based pricing strategy, ensuring that the cost reflects the perceived benefits. It offers premium models at higher prices, while also introducing budget-friendly versions to cater to price-sensitive customers.
This comprehensive marketing strategy has helped XYZ Electronics maintain a strong market presence, build customer loyalty, and sustain a competitive advantage.
Which of the following is NOT part of XYZ’s promotional strategy?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Financial audit
Option (1) Advertising — Part of the promotional strategy (Incorrect). XYZ advertises heavily online and on television.
Option (2) Financial audit — Not part of the promotional strategy (Correct). The promotion mix is advertising, personal selling, sales promotion and public relations, and XYZ uses all four. A financial audit is a check of the company’s accounts. It is a finance and accounting activity, and it says nothing to customers about the product.
Option (3) Sales promotion — Part of the promotional strategy (Incorrect). XYZ offers discounts, bundle deals and limited-time offers.
Option (4) Personal selling — Part of the promotional strategy (Incorrect). Its sales representatives demonstrate the phone in retail stores.
NCERT (2026-27 Edition): “Promotion Mix Promotion mix refers to combination of promotional tools used by an organisation to achieve its communication objectives. Various tools of communication are used by the marketers to inform and persuade customers about their firm’s products. These include: (i) Advertising, (ii) Personal Selling, (iii) Sales Promotion, and (iv) Publicity. These tools are also called elements of promotion mix and can be used in different combinations, to achieve the goals of promotion. …” |