MGT 474 chapter 7&8

franchise
a system of distribution in which semi-independent business owners (franchisees) pay fees and royalties to a parent company (franchisor) in return for the tight to become identified with its trademark to sell its products or services, and often use its business format and system
pure franchising
a system of franchising in which a franchisor sells a franchisee a complete business format and system
trade name franchising
a system of franchising in which a franchisee purchases the right to use the franchisor’s name without distributing particular products exclusively under the franchisor’s name
franchise disclosure agreement
a document that every franchisor is required by law to give prospective franchisees before any offer or sales of a franchise; it outlines 23 important pieces of info.
franchisers 3 growth waves
1) 1970’s fast food restaurants used the concept to grow rapidly
2) mid 1980’s franchisors shifted to the service sector
3) early 1990’s low-cost franchises that focus on specific market niches
master franchise
method of franchising that gives a franchise the right to create a semi independent organization in a particular territory to recruit, sell, and support other franchisees
intercept marketing
principle of putting a franchise’s products or services directly in the paths of potential customers, wherever they may be
conversion franchising
franchising trend in which owners of independent businesses become franchisees to gain the advantage of name recognition
co-branding
method of franchising in which two or more franchises team up to sell complementary products or services under one roof
bootstrap marketing
unconventional, low-cost, creative marketing strategies design dot give small companies an edge over their larger, richer, more powerful rivals
market research steps
1) define objective
2) collect data
3) analyze and interpret data
4) draw conclusions and act
data mining
process in which computer software that uses statistical analysis, database technology, and artifactual intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customers’ behavior
unique selling proposition (USP)
key customer benefit of a product or service that sets it apart from the competition; it answers the critical question every customer asks: “What’s in it for me?”
branding
communicating a company’s unique selling proposition (USP) to its target customers in a consistent and integrated manner
customer experience management (CEM)
process of systematically creating the optimum experience for customers every time they interact with the company
time compression management (TCM)
marketing strategy that relies on 3 principles:
1) speeding products to market
2) shortening customer response time in manufacturing and delivery
3) reducing the administrative time required to fill an order
bootstrap marketing techniques
unconventional, low-cost, creative techniques
greatest marketing mistakes small business make
1) talking to the wrong audience
2) using the wrong marketing strategies
3) not enjoying marketing
4) overpricing/ wrong pricing
5) not identifying a USP
demographic trend tracking
-reveal developments and changes in human population.
-they relate to changes in a population’s age, gender, geographical location, marital status, educational attainment, employment status, household income, race, religion, and health.
-business leaders, marketers, and advertisers can glean valuable insight from these
-for example, a geographical location might experience a shift in migration patterns
successful marketing requirements
1) market focus
2) product focus
3) concrete, measurable specifics
4) responsibility and accountability
5) reviews and revisions
achieving stellar customer service and satisfaction
1) define your customer experience and know your customer’s worth
2) communicate the mission
3) monitor to ensure that your standards stick
4) generate relavent, timely reports
5) give feedback, recognition, and rewards