Penelope's Pizza,a Local Chain of Restaurants,has Made the Decision to Expand

question 296

Multiple Choice

Penelope's Pizza,a local chain of restaurants,has made the decision to expand on a national basis.It plans to open 50 new locations in 20 cities across the country within the next two years.In order to efficiently integrate all the tools and company resources to maximize the impact on new customers,Penelope's Pizza is considering using an integrated marketing strategy to promote a coherent national brand perception.The account manager argues that an integrated marketing strategy is the way to go,but the CEO argues that each local community is different,and the needs,values,and norms of the host cities should drive the marketing campaign. After becoming a successful national brand,Penelope's Pizza has made the decision to expand overseas and enter the global market.Using a globally integrated marketing plan,Penelope's plans to enter the pizza market in Germany,Japan,and India.The CEO wants to use an adaptation plan in the new markets,and thus offer kielbasa pizza in Germany,sushi pizza in Japan,and vegetarian pizza in India.The advertising firm recommends a standardization approach as being more cost efficient and brand identifiable.Which statement,if true,supports the CEO's argument?

• A)Traditionally,all three markets are slow to adapt to the idea of fast food and prefer meals with known ingredients that are familiar to them.
• B)The cost of introducing new ingredients to the menu will increase the price of pizza by 15 percent.
• C)Marketing surveys show that the under-30 generation in each of the three countries is increasingly eager to consume fast food as a status symbol of increasing wealth.
• D)The current economic slump has decreased the volume of sales for all fast foods on a global basis.
• E)Obtaining vendors for new pizza toppings would require the hiring of additional translators in each country.

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Definitions:

Local Markets

Marketplaces or economic regions focusing on the trade, sale, and consumption of goods and services within a specific geographic area, often tailored to the local community's needs and preferences.

Mobile Marketing

A digital marketing strategy aimed at reaching a target audience on their smartphones, tablets, and other mobile devices, via websites, email, SMS, social media, and apps.

Interactive Messaging

Communication methods that allow for real-time or near-real-time exchanges between individuals or groups, often facilitated by digital technologies.

National Distribution

The process of making a product or service available across an entire country, often involving a complex network of distributors and retailers.