HOW DOES IT WORK?

HOW IT WORKS MARKETING YOUR FRANCHISE

You’ll need to promote your business, so how does the marketing support work?

Every commercial firm, whether it’s a businessoriented service or a consumer-facing operation, relies on some form of promotion to bring in new custom – or to remind existing or former customers of the brilliance of the service or product.

Sometimes that’s as simple as word-of-mouth, but most companies will be generating material to spread the message. One of the popular benefits of a franchise for its franchisees is the marketing support that’s available because most new business owners are not experts in this area.

And that’s why franchising is an easy option – you don’t need to become an expert, the experts are on hand. The marketing gurus at head office will be directing the process, but marketing in a franchise is split into two categories: national marketing and local area marketing (LAM).

NATIONAL MARKETING The campaign that promotes the latest burger offer or invites us to join in a game to win rewards is a national initiative directed and implemented by head office. The franchisor will plan and organise TV, radio, digital campaigns. These initiatives benefit each and every franchisee, and the good news is, it’s a level of promotion that the individual franchisee doesn’t need to worry about.

LOCAL AREA MARKETING LAM is targeted promotions that each franchisee is responsible for in their own area. These are campaigns that link back to the franchisee’s store or website, campaigns designed specifically to generate business in one area. It might be the personal face of a local business, it might be a service-based offer...the franchisee in most cases will be guided by head office on the types of promotions that are suitable and that have proved effective. Franchisees will often have access to logos, artwork, copy and specific guidelines about how they are to be used – all produced by the head office marketing team. It’s then the franchisee’s responsibility to ensure they are compliant, and to keep their foot on the pedal of local marketing. Think letter box drops, local newspaper adverts, sponsorship of the neighbourhood netball teams, announcements of events such as store openings and sales, and any cross-promotions with a complementary business.

WHO PAYS FOR WHAT? Franchisors establish a national marketing fund that each franchisee contributes to from their own turnover.

There are strict guidelines on how a marketing fund can be used, which means franchisors can only access the fund to deliver promotional campaigns and not dip into the coffers to finance an alternative business activity. Franchisors who do step out of line can be, and have been, fined for their non-compliance. It is then up to franchisees to finance their own LAM activities on top of their national marketing fund contribution.

MEASURING SUCCESS The franchisor’s marketing team will be held to account for the performance of the campaigns it generates. It’s crucial that the marketing undergone at a local level is also under scrutiny because you want to get results when you invest in promoting your franchise.

There isn’t a one-size-fits-all approach to how much information a franchisor will give you to understand your marketing; the experience, level of activity and depth of support will vary with each franchise system.

Marketing is an essential component in a business and franchising is about partnership. Each party needs to engage in the marketing process to ensure the brand becomes or remains a strong identity in the eyes of the customer. n FRANCHISE BASICS FRANCHISE BASICS