Penelope's Pizza, a Local Chain of Carryout Restaurants, Has Made

question 150

Short Answer

Penelope's Pizza, a local chain of carryout restaurants, has made the decision to expand to a national basis. It plans to open 50 Penelope's 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.
Penelope's Pizza also wants to be at the forefront of current trends and changes in the practice of advertising. The account manager wants to focus on consumer generated advertising via YouTube, Twitter, and Facebook, whereas the CEO prefers to focus on mainstream media. Which of the following, if true, would support the position of the account manager?
The number of television cable channels has skyrocketed in recent years.
Over the same time, the four major television networks suffered a 20-percent decrease in viewership, leading to a reduction in advertising rates.
The emphasis on effectiveness and accountability has lowered the production costs for a 30-second television commercial.
Television networks are seeking to ban the feature in recording devices that allows viewers to record television shows while deleting all commercial messages.
Young adults, under the age of 30, consume the largest amount of pizza per capita and are the greatest users of social media.

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Definitions:

Quotas

Limits set by governments on the quantity of a product that can be imported or exported within a given time period.

International Trade

The exchange of goods, services, and capital between countries across international borders.

Economic Growth

An increase in the production and consumption of goods and services, reflecting an improvement in a country's economy over time, typically measured by GDP.

Tariff Rates

The taxes imposed by a government on imported or, less commonly, exported goods, often used to protect domestic industries or to generate revenue.