Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Enterprise marketing

Question:

Jaagruk Grahak is an NGO which is active in spreading awareness and conducting tests of products for quality checks.

After doing a quality check in their laboratory, they found an energy drink by the name 'Blue Bull' produced by an MNC that contains the ingredients which are very harmful to health but the company has not mentioned them anywhere in the label of the product package. Jaagruk Grahak called a press conference and revealed the reports of the test for the product claiming that it contains harmful perspectives which were way beyond the permissible limits and regular intake of such drink could cause cancer. It was a breaking news on TV channels, newspapers, Radio, Magazines etc.

As a result, people stopped consuming that drink. This gave a big shock to company's sales and consequently it's revenue decreased drastically and affected company's goodwill. To overcome this situation, the top executive of the company decided to issue a press release clarifying that the company has stopped using harmful ingredients and label contains all the required information as per the law. The company also made multimedia presentation of its production process and future plans to promote its sales. The company also plans to change its packaging and labelling to give a fresh look to product.

Which of the following promotion tools helps to increase sales in short term?

(A) Advertising

(B) Personal selling

(C) Sales promotion

(D) Public relations

Choose the correct answer from the options given below:

Options:

(A) and (D) Only

(B) and (C) Only

(A) and (C) Only

(B) and (D) Only

Correct Answer:

(A) and (C) Only

Explanation:

Advertising and public relations are typically considered long-term strategies that aim to build brand awareness and enhance brand image over time. While they may indirectly contribute to sales in the long run, they are not typically designed to provide a quick boost in sales.

On the other hand, personal selling and sales promotion are specifically designed to generate immediate sales. Personal selling involves direct interaction with potential customers to persuade them to make a purchase, while sales promotion involves offering temporary incentives, such as discounts or coupons, to entice customers to buy.

Therefore, the most effective promotion tools for increasing sales in the short term are personal selling and sales promotion.