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.

Identify the concept used by the company to rebuild its image and to remove negative publicity.

Options:

Sponsorship

Sales Promotions

Public Relations

Personal Selling

Correct Answer:

Public Relations

Explanation:

The concept used by the company to rebuild its image and remove negative publicity is Public Relations.

Public relations (PR) is the management of public perception and reputation. It involves building relationships with the public, the media, and other stakeholders to promote a positive image of the company.

Sponsorship and sales promotions are primarily marketing tools used to increase sales and brand awareness. Personal selling is a sales technique that involves direct interaction with potential customers to persuade them to make a purchase.

While these other concepts may indirectly contribute to a company's image, they are not specifically designed to address negative publicity or rebuild a tarnished reputation. PR, on the other hand, is specifically focused on managing public perception and crafting a positive narrative around the company.

Therefore, the most appropriate concept for rebuilding a company's image and removing negative publicity is public relations.