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 an example of XYZ’s sales promotion tactics?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Offering deals and discounts
Option (1) Hiring more employees — Incorrect. This is a staffing decision. It does not give the customer any reason to buy now.
Option (2) Increasing production capacity — Incorrect. This is a production decision, not a marketing tool.
Option (3) Reducing salaries — Incorrect. This concerns the company’s own employees and costs. It is not aimed at customers at all.
Option (4) Offering deals and discounts — Correct. XYZ uses discounts, bundle deals and limited-time offers to attract more customers. Sales promotion means short-term incentives that encourage people to buy a product immediately. Discounts, a free product with another, and offers that end on a fixed date are its common tools.
NCERT (2026-27 Edition): “Sales Promotion Sales promotion refers to short-term incentives, which are designed to encourage the buyers to make immediate purchase 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. …” “Discount: Offering products at less than list price. Example, a shoe company’s offer of ‘Discount Up to 50%’ or a shirt marketer’s offer of ‘50+40% Discount’.” |