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.
How does XYZ Electronics use personal selling?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → By providing product demonstrations in stores
Option (1) By offering discounts online — Incorrect. A discount is a sales promotion tool. It is offered to everyone and needs no salesperson.
Option (2) By providing product demonstrations in stores — Correct. XYZ’s sales representatives stand in retail stores, show how the phone works and explain its benefits to each customer. That is personal selling: oral, face-to-face presentation of the product to a prospective buyer, with the aim of making a sale. The salesperson can answer questions and adjust the message to the person in front of him.
Option (3) By distributing free samples — Incorrect. Free samples are another sales promotion tool. The passage does not mention them.
Option (4) By reducing product prices — Incorrect. A price cut is a pricing decision or a sales promotion offer, not personal selling.
NCERT (2026-27 Edition): “Personal Selling 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.” “Personal Form: In personal selling a direct face-to-face dialogue takes place that involves an interactive relationship between the seller and the buyer.” |