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Chapter 6. The Service Delivery System a... > What are the Forms of Marketing in F...

What are the Forms of Marketing in Franchising?

Marketing within a franchised organization takes on several forms and combinations:

  • Franchisor marketing: The franchisor is normally responsible for centralized marketing and materials production, and development of national advertising campaigns. Once this function is fulfilled, the franchisor is principally responsible for the purchase of media on a national level. It also is responsible for providing advice and approving local and regional advertising done by the franchisee.

  • Franchisee marketing: Franchisees are often responsible for regional and local advertising to promote their individual store. The franchisor provides informational support regarding buying behavior, media costs, and market trends. As a franchisee, you have a contractual obligation to spend marketing dollars in your local market on promotions and public relations. Then, if the franchise is large enough, regional advertising is accomplished through the cooperative efforts of franchisees in a “region” that is served by a common media, often defined by the reach of the largest network television affiliate. Clearly, regional cooperatives create increased buying power for your franchise. For example, the New York regional cooperative for most franchises includes New York City, Long Island, southern Connecticut, and northern New Jersey. Therefore, with one store in southern Connecticut, you can advertise on “Imus in the Morning” or on the broadcast of the New York Yankees if there is substantial store penetration in New York and New Jersey. Franchisees of any given system in this geography pool a (sometimes contractually obligated) portion of their marketing budget in a regional cooperative fund. The franchisor builds on the informational support system with direct governance impact through its seat on the regional board of cooperative directors.


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