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

question 32

Multiple Choice

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?

• A) The number of television cable channels has skyrocketed in recent years.
• B) Over the same time, the four major television networks suffered a 20 percent decrease in viewership, leading to a reduction in advertising rates.
• C) The emphasis on effectiveness and accountability has lowered the production costs for a 30-second television commercial.
• D) Television networks are seeking to ban the feature in recording devices that allows viewers to record television shows while deleting all commercial messages.
• E) 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:

Corporate Opportunity

A business opportunity that a company has a legal interest in or right to, which an officer or director cannot take for their personal gain without breaching their fiduciary duty.

Conglomerate

A large corporation formed by the merger of separate and diverse firms, focusing on a wide range of business activities and markets.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, and other assets.

Vicarious Liability

A legal doctrine holding an individual or entity liable for the actions of another, based on the relationship between them, such as employer-employee.