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.

"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".

Which element of promotion mix is highlighted here?

Options:

Advertising

Public Relations

Personal Selling

Sales Promotion

Correct Answer:

Public Relations

Explanation:

The correct answer is option 2- Public relations.

The given statement highlights that EcoTech received positive press coverage and attention from environmental organizations, which is a result of their public image and sustainability efforts — a classic example of Public Relations (PR).

Public Relations (PR) involves a variety of programs and activities designed to maintain and enhance the company's image and the perception of its products or services in the eyes of the public. PR efforts might include press releases, sponsorships, events, media relations, and other strategies aimed at creating a positive public image and fostering good relationships with stakeholders.

 

OTHER OPTIONS

  • Sales promotion refers to short- term incentives, which are designed to encourage buyers to make immediate purchases of a product or service. These include all promotional efforts other than advertising, personal selling and publicity, used by a company to boost its sales. Sales promotion activities include offering cash discounts, sales contests, free gift offers, and free sample distribution. Sales promotion is usually undertaken to supplement other promotional efforts such as advertising and personal selling. Companies use sales promotion tools specifically designed to promote to customers (e.g., free samples, discounts, and contests), tradesmen or middlemen (e.g., cooperative advertising, dealer discounts and dealer incentives and contests) and to salesperson (e.g., bonus, salesmen contests, special offers). Sales promotions include only those activities that are used to provide short-term incentives to boost the sales of a firm.
  • Advertising is perhaps the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by the marketers (sponsors) to promote some goods or service. The most common modes of advertising are ‘newspapers’, ‘magazines’, ‘television’, and ‘radio’.
  • Personal selling involves oral presentation of message in the form of conversation with one or more prospective customers for the purpose of making sales. It is a personal form of communication. Companies appoint salespersons to contact prospective buyers and create awareness about the product and develop product preferences with the aim of making sale.