Evaluating Franchise Marketing Programs
Evaluating Franchise Marketing Programs
The marketing should drive clients to the franchisees without having to hire and manage an outside marketing firm. A uniform marketing message helps establish the franchise brand across the marketing area. Because all the franchisees pay into the marketing fund, the franchisor can hire a strong marketing firm and afford larger media buys that an individual franchisee probably could not afford. And because a large franchisor has enough marketing volume, the franchisor can negotiate national pricing agreements and deliver saving to the local franchisees.
So Why is the National Marketing Program often Problematic?
The marketing program is usually an area of difference of opinion between franchisors and franchisees. Occasionally, the conflict is warranted. Many times, it’s not.
Look at this.
• Marketing programs are funded by mandatory contributions made by franchisees. Some franchisors demand a fixed amount; others charge a percentage founded on the gross sales of the unit, but either way, it’s required of all franchisees.
• Although we all see advertisements, direct mail pieces, etc., most of us actually have no idea what goes into creating, executing and monitoring these programs. . But we think we do.
• It’s always challenging to spend money on something you have little or no control over. Perhaps especially hard for the entrepreneurial individuals who gravitate to franchise ownership.
• It’s easy to second guess, and consider the expense, without seeing the absolute necessity of a strong franchise marketing program.
That said, marketing constitutes an art as well as a science. Some programs are efficient and some are not, so you do want to do your best to evaluate the program and make sure it will work before you sign any franchise documents!
Here are some questions to ask the franchisor:
• How much marketing will the franchisor carry in your market? How are marketing dollars allocated? Ad dollars go a lot further in rural Wisconsin than they do in New York City.
• Is your market a typical market? If the majority of the materials are targeted to a certain demographic, and your market is constituted of a different demographic, how will that be handled?
• Are franchisees responsible for any marketing, and if so, what components? Is the cost of those components included in the mandatory marketing contribution?
• What percentage of the marketing budget is spent on image advertising vs. call to action advertising?
• What elements of the program are most effective?
• How is the marketing program evaluated, and how often? Are results shared with franchisees?
• Is the marketing program fully transparent? Will the franchisor provide you with an annual accounting of both the income and the expenses of the national advertising program?
• Ask the franchisor if s/he will send you copies of their ads and promotional pieces during your franchise investigation. Most franchisors will send items that are in the public domain.
Here are some questions to ask the franchisees:
• Do they keep track of how their customers discover them? If so, what percentage is from the marketing program (vs. word of mouth, driving by, etc.)?
• Which tactics are the most effective? Electronic marketing? Television ads? Direct mail?
• What things - if any - would the franchisee modify about the marketing program?
The bottom line.
Maybe the easiest measure is this: If you talk to a number of franchisees, and most are unhappy with the marketing program (for reasons other than cost), you will probably be unhappy as well.
Conversely, if most franchisees find the program is working (even if they consider it costs too much) it is probably an effective franchise marketing program that will be an important factor in your future success!
Evaluating Franchise Marketing Programs - To learn more about this author, visit Rick Bisio's Website.
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One of the several benefits of joining a franchise is the marketing that is made possible when you’re part of a large organization. As I say in Chapter 6 of my franchise book, The Educated Franchisee, the marketing power of a franchise system delivers the same advantages as a business with a dozen locations in a market. The franchisor is significantly more efficient than any independent franchisee can be. Professional marketing materials are expensive and valuable, so having materials provided by the franchisor is a key resource that works to your advantage.
The marketing should drive clients to the franchisees without having to hire and manage an outside marketing firm. A uniform marketing message helps establish the franchise brand across the marketing area. Because all the franchisees pay into the marketing fund, the franchisor can hire a strong marketing firm and afford larger media buys that an individual franchisee probably could not afford. And because a large franchisor has enough marketing volume, the franchisor can negotiate national pricing agreements and deliver saving to the local franchisees.
So Why is the National Marketing Program often Problematic?
The marketing program is usually an area of difference of opinion between franchisors and franchisees. Occasionally, the conflict is warranted. Many times, it’s not.
Look at this.
• Marketing programs are funded by mandatory contributions made by franchisees. Some franchisors demand a fixed amount; others charge a percentage founded on the gross sales of the unit, but either way, it’s required of all franchisees.
• Although we all see advertisements, direct mail pieces, etc., most of us actually have no idea what goes into creating, executing and monitoring these programs. . But we think we do.
• It’s always challenging to spend money on something you have little or no control over. Perhaps especially hard for the entrepreneurial individuals who gravitate to franchise ownership.
• It’s easy to second guess, and consider the expense, without seeing the absolute necessity of a strong franchise marketing program.
That said, marketing constitutes an art as well as a science. Some programs are efficient and some are not, so you do want to do your best to evaluate the program and make sure it will work before you sign any franchise documents!
Here are some questions to ask the franchisor:
• How much marketing will the franchisor carry in your market? How are marketing dollars allocated? Ad dollars go a lot further in rural Wisconsin than they do in New York City.
• Is your market a typical market? If the majority of the materials are targeted to a certain demographic, and your market is constituted of a different demographic, how will that be handled?
• Are franchisees responsible for any marketing, and if so, what components? Is the cost of those components included in the mandatory marketing contribution?
• What percentage of the marketing budget is spent on image advertising vs. call to action advertising?
• What elements of the program are most effective?
• How is the marketing program evaluated, and how often? Are results shared with franchisees?
• Is the marketing program fully transparent? Will the franchisor provide you with an annual accounting of both the income and the expenses of the national advertising program?
• Ask the franchisor if s/he will send you copies of their ads and promotional pieces during your franchise investigation. Most franchisors will send items that are in the public domain.
Here are some questions to ask the franchisees:
• Do they keep track of how their customers discover them? If so, what percentage is from the marketing program (vs. word of mouth, driving by, etc.)?
• Which tactics are the most effective? Electronic marketing? Television ads? Direct mail?
• What things - if any - would the franchisee modify about the marketing program?
The bottom line.
Maybe the easiest measure is this: If you talk to a number of franchisees, and most are unhappy with the marketing program (for reasons other than cost), you will probably be unhappy as well.
Conversely, if most franchisees find the program is working (even if they consider it costs too much) it is probably an effective franchise marketing program that will be an important factor in your future success!
Evaluating Franchise Marketing Programs - To learn more about this author, visit Rick Bisio's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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