Marketing in Franchise Businesses 2024-2025 PDF

**San Jose Community College** **San Jose, Malilipot, Albay** **A.Y: 2024-2025** **Marketing in Franchise Businesses** **Report by:** **Aringo, Mary Jane C.** **Braga, Meralyn R.** **Caña, Shiela M.** **Juaquera, Angel Mae R.** **BSBA FM 4-A** **INTRODUCTION** **What is Marketing?** ***M...

**San Jose Community College** **San Jose, Malilipot, Albay** **A.Y: 2024-2025** **Marketing in Franchise Businesses** **Report by:** **Aringo, Mary Jane C.** **Braga, Meralyn R.** **Caña, Shiela M.** **Juaquera, Angel Mae R.** **BSBA FM 4-A** **INTRODUCTION** **What is Marketing?** ***Marketing*** is a business activity that involves promoting products or services to customers. The goal of marketing is to attract new customers, retain existing ones, and deliver value to customers. Marketing activities include: - Research: Understanding the target market, their needs, and their interests - Planning: Creating a marketing plan that outlines the activities and channels to use to reach customers - Promotion: Using advertising, branding, public relations, social media, and other methods to drive sales - Distribution: Ensuring products are available to customers - Pricing: Setting prices for products or services **The Four Ps (4Ps)** **The four Ps of marketing** are an *essential* part of building an effective marketing strategy. They include product, price, place, and promotion, and they describe how marketing interacts with each stage of the business process. Let's review each one briefly. **Product** If you have a product idea, consider conducting market research to see if your product aligns with your target market and their needs. Use these questions as a guide: - Who are your target customers? - Is this product-market-fit? - What message will increase sales of a product? - What platforms are you using? - How can your product developers increase the likelihood of success of the product? - Is there any hesitation or question focus groups have about the product? **Price** Your marketing research serves to inform your ideal customer's price. If your product or service is expensive for the market, you may lose customers. However, if you don't charge enough, this may send messages about the quality of what you offer, so it's important to gauge your ideal price point correctly. To identify a successful price, you will want to thoroughly understand your target audience and their willingness to pay for your product. Some questions you might ask yourself as you are considering your product's price include: - What is the price range of your product's competitors? - What is the price range of your target audience? - What price is too high for your audience? What price is too low? - What price best fits your target market? **Place** Marketing helps you know how and where to sell your products based on research and analysis. Consider whether e-commerce works better than a retail store or vice versa. An effective marketing strategy can help you identify the best locations for selling your products nationally or internationally. To decide the best place to market and sell your product, you should consider researching the physical places or digital channels where your target audience shops and consumes information. Some questions to consider include: - Where will you sell your product? - Where does your target audience shop? - What distribution channels are best to reach your target market? **Promotion** The promotion process refers to any advertisement, event, or discount your marketing department creates to develop product awareness and interest to make sales. Public relations campaigns, advertising, and social media promotions can be used at this stage. Some questions to consider as you are working on your product promotion include: - What is the best time to reach your target audience? - What marketing channels are most effective for your target audience? - What marketing messages would most resonate with your target audience? - What advertising approaches are most persuasive to your target audience? **The five Ps** The five Ps are product, price, place, promotion, and ***people***. Today, many marketers use the five Ps over the four Ps because they center the experiences of customers and staff in the marketing process. Typical considerations include how a customer behaves, their product experience, and overall satisfaction with the business. **The seven Ps** The seven Ps are product, price, place, promotion, people, ***processes,*** and ***physical evidence.*** The seven Ps are a further elaboration of the five Ps, adding considerations of the processes that define the customer experience and the physical evidence that the target market needs to see to become customers. While processes might involve the specific customer service processes that define a product, physical evidence can be websites or store displays that help the target market imagine themselves using the product. 1. **Understanding Franchise Marketing** **Franchise marketing** means promoting your business across all your franchised locations. It involves [promoting] and [expanding] franchise business. It's the ***driving force*** behind attracting franchisees, building brand consistency, and steering business growth. Essentially, any effort you put into growing your franchise is considered franchise marketing. This can mean marketing efforts at a top branding level down to marketing for specific locations. Franchise marketing isn\'t your run-of-the-mill marketing: - It serves a dual purpose: it targets potential franchisees and end customers. - It requires balancing strategic efforts to meet the needs of both audiences. - It involves maintaining brand consistency across various independently-owned, geographically-dispersed locations. **Two (2) Types of Franchise Marketing** - **Operational Franchise Marketing** Operational franchise marketing is franchise marketing that focuses on local businesses and their goings-on more than the larger franchise. In the realm of small-business advertising, it's about connecting the individual franchise to the larger franchisor. In this case, the franchisor and the franchise owner may work together to help the individual franchise feel like a piece of the larger business. - **Franchise development marketing** Franchise development marketing is about the larger franchise business. A franchisor may want to develop a marketing campaign to attract more potential franchise owners to establish franchises as local businesses. In that case, the target audience would be new franchisees looking to start a local business. On the other end, franchise development marketing can help establish the footprint of a brand. This can be done through SEO, digital marketing, email marketing, and content marketing. 2. **The Importance of Franchise Marketing** - Franchise marketing is a game-changer for business growth and success. - It helps establish an overall brand strategy for a franchise business. - It'll attract franchisees, boost brand recognition, and cultivate customer loyalty. 3. **Key Components of Franchise Marketing** Franchise marketing is an *umbrella term* housing several key components. - Traditional Marketing - Digital Marketing Aspects binding components together: - Brand Consistency: Maintaining a uniform brand image and voice across all your locations and marketing efforts. A beacon for your target market amidst the marketing noise. - Marketing Plan Creation: Laying out a detailed, actionable plan that outlines your marketing objectives and the strategies to achieve them. - Target Market Identification: Recognizing & understanding your audience -- both potential franchisees and customers. Crucial in crafting effective marketing strategies. - Measuring Marketing Success: Evaluating the effectiveness of your marketing efforts through metrics like leads, conversion rates, and ROI. **CHAPTER 1: Setting the Foundation for Franchise Marketing** 1. **Defining Your Brand and Value Proposition** A well-defined brand and strong value proposition are your franchise\'s ***secret weapons.*** They serve as your identity, differentiating you in the crowded franchise market. To sharpen these weapons, you\'ll need to: - **Identify Your Unique Attributes** *What makes your franchise different?* It could be your exceptional service, unique product features, or an innovative business model. These distinctive attributes form your unique selling proposition. - **Define Your Core Values** *What does your brand stand for?* Quality, innovation, community, sustainability - whatever your values, they should be deeply ingrained in your business and resonate with your target audience. - **Highlight Distinctive Benefits** *How does your franchise benefit customers?* Your benefits are the reasons customers choose you over competitors. Maybe you provide exceptional value, superior quality, or unmatched convenience. Communicating your value proposition effectively can set your franchise apart. Here are a few tips: **Be clear and concise:** Keep your value proposition straightforward and easy to understand. **Show, don\'t just tell:** Use real examples, success stories, and customer testimonials to demonstrate your value. **Stay consistent:** Ensure your value proposition is reflected consistently across all your marketing channels and franchise locations. **Evolve:** Revise and refine your value proposition as your franchise grows and market dynamics change. 2. **Identifying Your Target Market** Knowing your audience is a *crucial first step* in personalizing your marketing strategies. It\'s like a [treasure hunt,] where the *treasure* is your target market, and the *map* is demographic data, psychographics, purchasing habits, and a keen understanding of customer needs and wants. - **Demographic Analysis** This is about ***who your customers are*** - their age, gender, income level, education, and occupation. Understanding demographics helps you create a profile of your ideal customer. - **Psychographic Analysis** Here, we delve into the *\'why\'* - ***why do your customers behave the way they do?*** Their values, attitudes, interests, lifestyle, and personality traits can give you a clearer picture. - **Purchasing Habits** Understanding ***how, when, and where** your customers prefer to purchase* can help you tailor your sales strategy and marketing efforts. - **Identifying Needs and Wants** ***What problems does your product or service solve?*** Understanding your customers\' needs and wants helps you position your franchise as a solution. **Market segmentation** is the key to personalizing your marketing efforts. It allows you to tailor your messages, offers, and products to meet the specific needs of different segments, enhancing customer engagement and satisfaction. **CHAPTER 2: Building Your Franchise Marketing Plan** **2.1 Objectives and Goals** Setting clear, measurable, and realistic objectives is the foundation of a successful franchise marketing plan. They are your marketing compass, guiding your strategies toward your business goals. Here are some pointers on setting short-term and long-term goals: - **Understand Your Business Strategy** Your marketing goals should mirror your overall business strategy. If your business goal is to expand to new locations, your marketing goal could be to increase brand awareness in those areas. - **Set SMART Goals** Make sure your goals are Specific, Measurable, Achievable, Relevant, and Time-bound. This framework will ensure your goals are clear and reachable. - **Short-Term Goals** These are your immediate focus and usually aim to be achieved within a year. They could be increasing monthly website traffic, boosting quarterly sales, or reducing customer churn rate. - **Long-Term Goals** These are your big-picture objectives, typically set for 3-5 years. They could be becoming a market leader, diversifying your product/service offerings, or expanding internationally. - **Align Short-Term and Long-Term Goals** Your short-term goals should feed into your long-term goals. For instance, consistently increasing quarterly sales (short-term goal) would lead to becoming a market leader (long-term goal). **2.2 Budgeting for Marketing** Determining an appropriate marketing budget is a critical piece of the puzzle. It's fuel for your marketing engine, powering your franchise toward its goals. So, how do you decide on a marketing budget? - **Understand Your Revenue** A common practice is to allocate a percentage of your projected revenue toward marketing. While the exact percentage can vary, many businesses allocate around 7-8% of their revenue to marketing. - **Consider Your Business Stage** If you're a new franchise seeking to build brand awareness, you might need to invest more than an established franchise to maintain its market position. - **Evaluate Your Marketing Goals** Your budget should align with your marketing goals. More ambitious goals require a larger budget. - **Check Your Competitors** Understanding what similar franchises spend on marketing can help benchmark your budget. Once you have a ballpark figure, allocating resources effectively becomes the next challenge. **Here are some strategies:** [Prioritize Based on Goals:] Allocate more budget towards strategies directly contributing to your primary goals. [Monitor and Adjust:] Regularly track your marketing performance. If a strategy is not delivering as expected, don't hesitate to reallocate the budget to more effective strategies. [Balance Between Channels:] Don't put all your eggs in one basket. Balance your budget across marketing channels -- SEO, PPC, Email, Social Media, etc. **2.3 Planning for Local and National Marketing** Franchise marketing is a balancing act, juggling national brand promotion and local marketing strategies. This dual approach ensures your brand shines on both the national stage and in individual markets. Let's look at strategies for this integrated approach: - **National Brand Promotion** *Brand Consistency:* Make sure all marketing materials across the franchise network uphold brand guidelines, reinforcing your franchise's identity on a national level. *Broad Reach Campaigns:* Invest in advertising campaigns with broad reach, like television, radio, or national digital platforms. *Public Relations***:** Engage in PR activities that boost your franchise's national visibility. This could include media interviews, press releases, and collaborations. - **Local Marketing Strategies** *Local SEO:* Optimize your franchise's online presence for local search. This includes having a Google My Business listing, localized content, and local keyword targeting. *Community Engagement:* Participate in local events, and sponsor local sports teams or community groups. This helps build local brand recognition and community goodwill. *Localized Advertising:* Use geotargeting features in digital advertising platforms to target potential customers within specific local markets. **2.4 Establishing an Expected Time Window for Seeing Results** Patience and realistic expectations are two essential ingredients in franchise marketing success. Here's a closer look at what to expect: - Immediate-Impact Tactics Pay-Per-Click Advertising: These campaigns can drive immediate traffic to your website. However, remember that results may dip once the campaign ends, so balancing this with long-term strategies is essential. Social Media Advertising: Like PPC, social media ads can bring instant visibility and traffic. The impact is often quick but can vary based on the competitiveness of your market. - Longer-Term Efforts SEO: Search Engine Optimization is a long game. It can take months to see significant movement in search engine rankings, but the results are often worth the wait, leading to sustained organic traffic. Content Marketing: Creating valuable, engaging content can attract and retain a loyal audience over time. Building a strong content base and seeing substantial results takes consistent effort and time. **CHAPTER 3: Effective Franchise Marketing Strategies** **3.1 What is a marketing strategy?** A ***marketing strategy*** is a *long-term proposal* outlining the steps a marketing team will take to reach their goals. Think of it as a plan to follow, so objectives are aligned and steps are clear, allowing for the most effective marketing methods and practices to be implemented. **3.2 Traditional Marketing Strategies** ***Traditional marketing*** refers to offline marketing methods, including direct sales, television, radio, and mail. This option may still be suitable for some businesses and audiences. **Print marketing** Advertising in newspapers, magazines, billboards and local publications are examples of print marketing. You can make these ads to look very appealing and get the brand's message across to a target audience. **Events** Event marketing allows you to create advertising materials to showcase at industry events, such as seminars, conventions, and conferences. Creating booths and materials such as banners and signs can help attract attendees to learn more about your company and its products. To gain local attention, set up similar booths at other local events, such as fairs or festivals. Your brand can increase awareness and recognition by participating in sponsorships, like sporting events. **Telephone marketing** Telemarketing, also known as telephone marketing, is a way to sell products or services via the telephone. Businesses-to-business (B2B) and businesses-to-consumers (B2C) use cold calling or warm leads where a personal connection has been made and trust has been built. A telemarketing strategy allows you to interact with prospective customers and explain how your product can address their challenges. Two main types: 1. **Outbound telemarketing:** Businesses initiate cold calls to promote products, services, or gather feedback from customers. 2. **Inbound telemarketing:** Customers call businesses in response to ads or promotions for inquiries, orders, or support. **3.3 Digital Marketing Strategies** ***Digital marketing*** is the use of online channels and platforms, like social media, email, and search engines, to promote and sell products or services. The main parts of it are: **Local SEO and Google Business Profile Optimization** Local SEO and Google Business Profile (GPB) optimization are your franchise's tickets to visibility in the local market. They help your business appear in relevant local searches, connect with local customers, and, ultimately, drive local sales. - Keyword Targeting - Listing Optimization - Garnering Positive Reviews - Localized Content - Backlink Building **Social Media Marketing** Social media is a powerful tool for franchises to engage with their audience, build their brand, and drive sales. It offers the ability to connect with customers personally and creates opportunities for real-time interaction. - Content Creation - Community Engagement - Paid Advertising Opportunities - Performance Analysis **Email Marketing** Email marketing is a powerful tool for nurturing leads, maintaining customer relationships, and driving conversions. Despite the rise of other digital marketing channels, email remains one of the most effective and cost-efficient strategies. - Building an Email List - Segmenting Your Audience - Crafting Compelling Messages - Creating Calls-to-Action **Content Marketing** Content marketing is vital in building brand authority, engaging your audience, and driving organic traffic. It's about creating high-quality, relevant content that appeals to your target audience, addresses their needs, and positions your franchise as an industry expert. - Content Strategy - Content Creation - SEO Integration - Performance Measurement **Pay-Per-Click (PPC) Advertising** Google Ads is a powerful tool for achieving immediate visibility and lead generation. It's a platform where you can advertise your franchise in Google's search results, on its partner websites, and even within its mobile apps and video content. - Creating Effective Google Ads - Keyword Selection and Bidding - Leveraging Ad Extensions - Optimizing for ROI **LinkedIn Advertising** LinkedIn is a leading platform for B2B marketing and professional networking. It benefits franchises looking to attract potential franchisees or forge meaningful partnerships. - Creating Organic Content - LinkedIn Advertising **CHAPTER 4: Measuring Success in Franchise Marketing** **4.1. Objectives and Goals** Key Performance Indicators, or KPIs, are integral to any marketing strategy. They serve as a *compass*, helping you to understand if you're on the right path to achieving your marketing goals. **Importance of KPIs** KPIs allow you to assess your marketing efforts' performance, identify improvement areas, and make data-driven decisions. **Choosing the Right KPIs** Selecting the right KPIs for your franchise marketing depends on your marketing objectives. **TYPES OF KPIS** **Brand Awareness KPIs** - Social Media Reach: The number of unique users who see your content on social media platforms. - Website Traffic: The number of visitors who land on your website. - Media Mentions: How often media outlets mention your franchise. **Lead Generation KPIs** - Lead Conversion Rate: The percentage of leads that turn into prospective franchisees or customers. - Cost per Lead: The average amount spent to acquire a new lead. - Leads by Source: The number of leads generated from each marketing channel. **Customer Conversion KPIs** - Conversion Rate: The percentage of leads that turn into customers. - Average Order Value: The average amount of money customers spend per transaction. - Customer Acquisition Cost: The cost of convincing a customer to buy a product/service. **4.2 Making Data-Driven Decisions** Data plays a crucial role in shaping the marketing strategies of a franchise. By analyzing data, you can gain insights into your marketing performance, identify areas of improvement, and make informed decisions that drive growth. Here's how: - **Informed Decision-Making** Data analysis clearly explains what's working in your marketing strategy and what isn't. These insights empower you to make strategic decisions contributing to your franchise's growth. - **Resource Allocation** Data can show you where your marketing dollars are making the most impact. For instance, if your social media ads generate a high return on investment, it might be worth allocating more resources there. - **Driving Growth and Success** Using data for decision-making helps optimize your current marketing efforts and sets the stage for sustainable growth. By consistently analyzing performance data, you can identify trends, predict customer behavior, and proactively change your marketing strategy. **CHAPTER 5: Future trends in Franchise Marketing** **5.1. The rise of AI and automation** As the world continues to embrace the digital revolution, Artificial Intelligence (AI) and automation are becoming increasingly significant in marketing. These technologies can streamline operations, provide personalized customer experiences, and drive business growth. - **AI and Automation** AI and automation are game-changers in the marketing industry. By automating repetitive tasks, franchisees can focus more on strategy and creative efforts. AI can also offer personalized experiences to customers, boosting engagement and satisfaction. Some examples of AI in action include: **Customer Service Chatbots** AI-powered assistants can handle customer service tasks, like answering frequently asked questions or guiding users through a website. They provide immediate assistance, improving the customer experience. **Email Marketing Automation** AI can segment your audience and send personalized emails based on consumer behavior, leading to higher campaign engagement rates. **AI-Powered Content Creation** AI can now generate amazing content, like social media posts or blog articles, saving time and resources. - **Predictive Analytics** Predictive analytics uses historical data, machine learning, and AI to predict future outcomes. In marketing, this can help forecast consumer behavior, upcoming trends, and the success of marketing strategies. **5.2 The Power of Video Marketing & Voice Search** **The Power of Video Marketing** Social media is a powerful tool for franchises to engage with their audience, build their brand, and drive sales. It offers the ability to connect with customers personally and creates opportunities for real-time interaction. Here are ways franchises can capitalize on this trend: - **Product Demonstrations and Tutorials** Show your products or services in action, offering helpful tips and tutorials to your audience. - **Testimonials and Reviews** Highlight satisfied customers sharing their positive experiences with your franchise. - **Behind-The-Scenes and Day-In-The-Life Videos** Give viewers an inside look at your franchise, showcasing your team, culture, and values. - **Live Videos and Webinars** Engage with your audience in real time, answering questions, providing valuable information, or showcasing special events. **Voice Search and Smart Assistants** As technology advances, more consumers turn to voice search using smart speakers and assistants like Amazon's Alexa and Apple's Siri. These tools allow users to ask questions, make purchases, and find local businesses using their voice, changing how people interact with search engines. Here's how to adapt: *Optimize for Voice Search*: With voice search, users are more likely to use natural language and full sentences. Optimize your SEO strategy to align with these longer, more conversational search terms. *Local SEO:* Voice search users often look for local businesses. Ensure your franchise's local SEO strategy is robust, including accurate and up-to-date Google My Business listings. *Website Accessibility:* Ensure your website is mobile-friendly, loads quickly, and has an SSL Certificate. These factors can impact your site's ranking in voice search results. **5.3 Sustainability and Social Responsibility** Increasingly, consumers today are drawn to businesses that prioritize sustainability and demonstrate a commitment to social responsibility. Sustainable Practices, Socially Responsible Initiatives, Transparent Communication, Engaging Your Franchisees and Partnering with Ethical Suppliers Franchises demonstrating a commitment to these areas can stand out from the competition.