DHVTSU
Chapter 5
The Franchise
Marketing Process
Contents
1 The Strategic Planning in Franchising
2 Steps in Strategic Planning
3 Product and the Marketing Mix
4 The Product Life Cycle
2 New Proudct Development
Marketing as defined by Kotler and
Amstrong (2012)
• Marketing is managing profitable customer
relationships.
• Marketing is satisfying customer needs
• Marketing is social and managerial
process by which individuals and
organizations obtain what they need and
want through creating and exchanging
value with others.
Some support program provided by the franchisor to the franchisee
includes:
1 Market Research
Marketing surveys 2
3 Site Selection
Operational layout 4
5 Store design
Strategic Planning in Franchising
Business Market
Image Direction
Core
Marketing
Issues
Ongoing
Recruitment
advertising
of
and grand
franchisees
openings
Business image
Branding and Brands
– Task of image and brand management.
– Values generated in the minds of people as a
consequence of the sum total of marketing
communications effort.
– Set of attributes, that have a meaning, an image
and produce associations with the product when a
person is considering that brand or product
Brand logo
Determining the market direction
It answers the questions:
• Where will the first expansions take place?
• How will they be served by headquarters?
• What locations or territories will be entered next?
• To what extent does the franchise system intend to become a multi-
state, regional, national or international system?
Recruitment of franchisees
Ongoing advertising and grand
openings
Strategic planning pertains to the process of
developing and maintaining a "strategic fit"
or the most appropriate strategy between
the organization's goals and capabilities in
the changing marketing opportunities.
The changing marketplace
Problems in Applying Strategic
Planning to Smaller Business
Steps in Strategic Planning
• Franchise Organization Mission
Mission is a statement of the
business’ purpose in the
industry category or what the
organization wants to
accomplish in the larger
business environment. It can
also mean the purpose of why
an organization is existing.
Hierarchy of Objectives and Strategies
Determining Niche(s) Suitable to
Company Strengths
Marketing Mix
• The set of tactical marketing tools –
product, price, place and promotion that
the firm blends to produce the response
in the target market.
The 4Ps of Marketing
[Link] refers to the actual
good or service, and how it relates to
the end-user’s needs and wants.
Characteristics of Services as a product
Pricing. This refers to the process of setting a
price for a product, including discounts. The
price need not be monetary. It can simply be
what is exchange for the product or service, e.g.
time or attention.
Promotion. This refers to the
communication between the seller
and the consumer.
Placement or Distribution.
This refers to the
process of how the
product gets to the
customer; for
example, point of
sale placement or
retailing.
THE ADDITIONAL 3Ps
People. These are the employees,
customers or those who are directly
involved in consuming or producing the
goods or services.
Physical [Link] can be
the facility design, equipment or
signage.
Process. This is
the flow of activities or
steps and level of
customers’
involvement.
Characteristics of Services as a product
Product Life cycle in Franchise Marketing Strategy
Introduction and early growth
Product Life cycle in Franchise Marketing Strategy
Sales continue to
grow but are
increasing at a
decreasing rate
Product Life cycle in Franchise Marketing Strategy
Retention and evaluation stage
NEW PRODUCT
DEVELOPMENT
New Product
Human Pillow
Anatomy jeans
Spray-on Bandage Remover
A device that trains you to smile
Turn your sink into drinking fountain
Urine sample candy
