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NextQ18

Prabhas is the creative head of an advertising agency. His latest project is to design a campaign for super food for children in the age group of 6 months to 2 years. He developed a jingle in Hindi as well as in English language to reach out to the maximum audience of the market segment. By doing this, he is not only informing and selling the product but also improving the image of the business. When any advertising activity is planned, there are four rules to be considered. From the following, identify the rule/rules that are taken into consideration by Prabhas in the above case: (i) Aim (ii) Target (iii) Media (iv) Competitors

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Question 17

Krishiv manufactures lamp shades in his cottage industry where labour intensive techniques are used. He is selling these lamp shades under the brand name U-lite. They are in great demand as nowadays interior designers are using lamp shades to give an aesthetic look to the houses they design. For Krishiv, the per unit cost of each lamp shade is Rs. 450 and he sells it for Rs. 900. Similar lamp shades are available in the market and on online websites in the range of Rs. 1,000 - Rs. 1,100 per unit. The pricing strategy used by Krishiv is the one where the price of the product is initially set at a price lower than the eventual market price to attract new customers. His objective is to increase the sales volume, rather than to make profit in the short-run. The pricing strategy adopted by Krishiv is:

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