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Diksha Ltd. Was Marketing ‘Dish-washers’ Which Were Very Popular Due to Their Quality and After-sale Services Provided to the Customers. the Company Was a Leading Company in the Market and Earning Huge Profits. - CBSE (Commerce) Class 12 - Business Studies

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Question

Diksha Ltd. was marketing ‘Dish-Washers’ which were very popular due to their quality and after-sale services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits the company ignored its after-sale services. As a result its relations with the customers got spoiled and the image of the company was damaged in the eyes of the public. Top management became concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring after-sale services was its reason. Therefore, the company took all possible measures to protect and promote its image. As a result the goodwill of the company improved in the society.

a. Name and state the communication tool used by the marketer in the above case to improve its images.

b. Also explain role of the tool as identified in part (a).

Solution

a. In the given scenario, ‘public relations’ is the communication tool used by the company to restore its good image. The sole purpose of ‘public relations’ is to create and maintain cordial relationship of the company with its stakeholders, customers, lenders etc. Such positive public relations of company are key foundations for its survival and growth.

b. Importance of “public relations” can be highlighted as follows.

i. It allows organization to attain its goals in a hassel free manner without constantly worrying about its public image.

ii. It assists the organization in creating and maintaining a market for its product among the consumers and hence, to increase its brand loyalty among those consumers.

iii. Public relations among the stakeholders and consumers also allow an organization to survive in the business in long run and deal with its new potential competitors effectively.

iv. It also complements the promotional ventures undertaken by the organization to increase its customer base.

  Is there an error in this question or solution?
Solution Diksha Ltd. Was Marketing ‘Dish-washers’ Which Were Very Popular Due to Their Quality and After-sale Services Provided to the Customers. the Company Was a Leading Company in the Market and Earning Huge Profits. Concept: Role of Public Relations.
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