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Question

Difficulty: MediumSales Promotion and Public Relations

A multinational logistics company operating in Nigeria establishes an annual university scholarship fund for youth living in its host communities to build trust and resolve past environmental disputes. Which promotional activity is illustrated by this initiative?

  1. Corporate public relationsAnswer
  2. B
    Informative product advertising
  3. C
    Consumer sales promotion
  4. D
    Direct personal selling

Answer

Corporate public relations
Establishing scholarship funds and community development programs aims to create a favorable corporate image and build harmonious relationships with stakeholders, which defines corporate public relations.

Step-by-Step Solution

1
Analyze the primary goal of the corporate initiative in the scenario.
The initiative seeks to establish community trust, address disputes, and build long-term goodwill rather than drive immediate product purchase.
Identifying the target outcome distinguishes image management from direct sales incentives.
2
Match the core objective to the correct promotional mix component.
Strategies designed to manage public reputation and foster mutual understanding with host communities fall under public relations.
Public relations centers on long-term corporate goodwill and community harmony.

Key Concept

Distinguishing Public Relations from Advertising and Sales Promotion
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Topics

Sales Promotion and Public Relations

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