CBSE Class 12 Business Studies 2016 Outside Delhi set 1

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A company was marketing 'Juicers' 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 the aftersales-services. As a result its relations with the customers got spoiled and the image of the company in the public was damaged. Top management became concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the after sales services was its reason. Therefore the company took all possible measures to protect and promote its favourable image. As a result, the goodwill of the company improved in the society.
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Question : 23
Total: 34
Also explain role of the tool as identified in Part (a).
Solution:  
Role of Public Relations:
(i) Communicating new development: Public relation is a good tool to communicate new developments in the organisation.
(ii) Image building: It helps an organisation in building a positive image for its products. Moreover, an organisation facing a negative publicity can use public relations to improve its image and reputation.
(iii) Supplement to advertising: The public relation helps in strengthening the image to the product through press releases, sponsoring event, etc. It act as a supplement to advertising.
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