If you are an aspiring franchisee, you may come across multiple business-related questions. Franchising business comes with multiple responsibilities. You may have to take care of several things, including setting up your business and looking after its marketing and advertising. It is simple to start, but marketing can be challenging to master.
The Importance of Marketing and Advertising
Marketing is a critical element contributing to a brand’s success. Franchisors currently operating have thrived over the years and have succeeded due to their investments in marketing across multiple platforms. Customers may never know your product exists if you do not bring it to their notice. No one understands this better than a franchisor. One needs to put the product out and gain. Both marketing and advertising require a significant investment of time, intelligence and money to gain visibility for the products.
The focus of every major franchise is to give the customers what they want. A franchisor’s marketing perspective and strategies focus on generating a favourable image for the chain. Additionally, they have a team of professionals to:
- Handle Social Media and assorted Digital Platforms
- Maintain Public Relations
Each of these teams has a specific role in serving and is in charge of things like the brand’s promotional strategies, executing visual campaigns, promoting the brand across digital platforms and social media and interacting with journalists.
Marketing- A Business Tool
Well-planned advertisement and marketing techniques can positively impact a business. Here’s how you can use it to your benefit:
A Sizeable Budget
Franchising companies promote their brand and products on a budget. Often, the company takes a flat 8-10% royalty from each franchisee. They channel 30-40% of this to marketing their offerings. This budget is substantial for the brand and offers creative freedom to multiple chains of outlets.
Marketing involves extensive research to understand the demographics of the existing customer and their preferences, identify a target audience and get other insights. Marketing research has to be conducted over a larger and more varied group to get accurate data. Many businesses start this off by offering samples, trial products and freebies on immediate purchases.
Even if the products are average, an excellent marketing strategy combined with the right type of advertising can help you successfully sell them. If you do not have a good marketing plan, your audience may not be able to reach and resonate with your product, even if it is excellent. If you do not encourage and entice customers to walk into your stores through your offerings, they may not be interested in your products. It will also lead your brand to become unsustainable.
In the case of a franchise organisation, the parent company designs the brand’s overall strategy and executes it. Every rupee spent by the franchisor on advertising benefits all the outlets.
Impact of Marketing and Advertising
Marketing activities, when done correctly, provide significant benefits for a franchising business. Here are a few of their positive effects and roles in a brand’s success:
Increases Visibility and Goodwill
Once your brand is well-known, you need to sustain marketing even more, to stay ahead of the competition. As customers have several options, a well-designed marketing strategy can work in your favour.
In a franchise business, the franchisor has the financial capacity to collaborate with payment platforms, food delivery sites, online yellow pages, or even airport cafeterias and food malls. The sheer goodwill and the franchise’s popularity ensure that the collaborating partner gives maximum visibility to the brand.
Franchisors spend substantially on marketing and promotions, and the goodwill quickly converts into brand loyalty. If you give your customers a choice, they are more likely to be loyal to the brand they like and have tried before. Therefore, securing a loyal following for your franchise business is essential.
Economies of Scale
An individual has almost no bargaining power when it comes to business. However, a franchisor enjoys economies of scale when it comes to marketing. They negotiate better. Every franchising company has its calculations for allocating a marketing budget, but eventually, the benefits spill over to all its franchisees.
Marketing and advertising both contribute significantly to a franchise’s success. If you are interested in becoming a part of an expanding brand, we at JumboKing have opportunities for you.
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