• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint

National Advertising

A franchisor generally spends the money needed to produce highly professional production materials and distribute them on a local level to franchisees. This separates the franchise from its their mom-and-pop competitors in the community early in the game in an attempt to build brand equity. As the number of outlets in a franchise system grows, the contributions by franchisees to the national advertising fund will exceed the amount needed to produce marketing materials. The balance that is left represents the dollars that the franchisor will spend on national advertising. National advertising is the holy grail of marketing economies. As the total national advertising budget expands, franchisees usually want a formal voice in the way the national money is spent. Many franchisors form an advisory council to solicit the perspective of franchisees. As a franchisee, you will need to press the franchisor to include your marketing perspective and local market knowledge. Remember, one of the important values of a franchise relationship is your direct understanding of consumer needs and requirements, as you are the closest link to the consumer. Bringing that knowledge to the marketing decision-making process is a key franchise synergy.

The concept of a national advertising council was initially derived from a study by the International Franchise Association (IFA) during the 1970s. The study noted that if a franchisor did not take a leadership role in organizing a formal council that could listen to issues and offer guidance, feedback, and action, then the franchisees would form an informal association to meet the need. We agree with the IFA’s findings and recommend that franchisors preempt this activity by forming a formal governance structure. This action displays a leadership role on the part of the franchisor and ensures that the franchisor and franchisee communicate with each other, focusing on key marketing issues.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint