Solved

Scenario 12-4 Prudential Prime Properties Is a Local Real Estate Office Franchise

question 16

Multiple Choice

Scenario 12-4
Prudential Prime Properties is a local real estate office franchise that serves a medium sized metropolitan market. This business is the second largest real estate office in town with a 23% share of the market. Even with an annual advertising budget of over $200,000, this office is not seeing significant sales growth. Prudential Prime Properties has spent the majority of its advertising budget on simple newspaper ads showing specific home listings and promoting weekend open houses. Roy Becker, sales manager, has been questioning whether or not this office should consider additional spending on programs that take advantage of the convergence of Madison & Vine. At present, only about 20% of the promotional budget is allocated which is half what was spent on traditional advertising last year.
-(Scenario 12-4) Roy is considering using billboard advertising to enhance the awareness of the specific services that are offered by this real estate office. His office manager, who just earned an M.B.A. in marketing, suggests that it might be better to build connections with local developers and builders as a way to reach consumers, since traditional media aimed at consumers didn't do the job last year. If Roy agrees, which of the following is likely to be one of the branding tools he considers this year?

Definitions:

Lenders

Entities that provide funds to others with the expectation of repayment plus interest.

Shareholders

Individuals or entities that own one or more shares of stock in a public or private corporation, thus having a claim to a part of the company's assets and earnings.

Risk

The possibility of loss or injury, or the variability of returns associated with a given investment or financial activity.

Contributed Capital

The total value of cash or other assets that shareholders have given a company in exchange for stock, also known as paid-in capital.