SELLING AND MARKETING

RESEARCHCHAPTER 6

Expected Learning Outcomes

Learn about the uniqueness of selling

in a franchise organization

Organize franchise sales programs

Learn how to develop a sales kit

(sales package)

Understand the first meeting between

the franchisor and franchisee.

Discover the sales playbook

Basic concepts

Selling is encouraging the transfer of

products or services from one

individual to another.

The franchisor is a sales person both

to the franchisees and to the end

customers

Selling is divided to two categories:

◦ Selling to the prospective franchisee

◦ Selling to the end consumer.

The Journey of Selling

Selling is the highest paid and first profession in the world

Foundation of the sales experience is the image of the product, service, or business itself: high quality, high value, important services, reasonable price.

Another foundation of the sales is identifying target franchisee, which is based on analyzing prospective franchisee in terms of:◦ Successful characteristics (personality positive

attitudes, inner drive, overcoming of obstacles, operation skills, etc.)

◦ History and biographical data

◦ Experience

◦ Financial net worth

Sales Kit (Package)

Elements of a Sales Package:

◦ Introductory Folder

◦ Sales Brochure

◦ Uniform Franchise Offering Circular

Introductory Folder

Information on the Franchise business

Invitation to join franchising family as a

wonderful business opportunity

Information on Training programs

Announcements of all fees: Basic

Franchise Fee, Royalty fee,

advertising fee, initial start-up cost.

Request for further information

Sales Brochure

Ongoing Training and Support from

franchisor

Brief Explanation of franchising

Invitation: include testimonials from

existing franchisees.

Initial Investment costs: financial

overview

Historical background and information of

franchisor

Application form for franchisee

(confidential)

Uniform Franchise Offering

Circular (UFOC) After receiving application and preliminary

approval by the franchisor, UFOC is

UFOC is given to the franchisee 10 days before signing any agreements or payments.

UFOC (23 items)provides tremendous information about: ◦ History and background of the franchise

◦ All Investment fee; obligations; earnings claims.

Expected Financial statements and contracts attached.

Prospective franchisee should discuss with at least 10 or more existing franchisees to learn experiences. They should also discuss their suppliers and customers.

Initial Meeting

Initial meeting between the franchisor

and its prospective franchisee

The franchisor learns more about the

person who may become its

franchisee

The franchisee can determine whether

this is worth to become its franchisee

as his lifetime of business.

The Sales Playbook

Determinants of a Sales Playbook:

◦ Mission Statement

◦ Inquiries

◦ Opening Benefits

◦ Listening

◦ Closing

Mission Statement

Franchisor’s introduction to the buyer

Introduce the company, its business,

benefits brought to the prospective

franchisees or to consumers

Forty words or less

Inquiries

Ask questions and collect the answers

Respondents: prospective franchisees

or customers

Questions to ask: who?, what?,

when?, where?, how?, why?

Probing questions: allow the company

to gather information and provide an

opportunity to explain their personal

wants, needs, and desires.

Opening Benefits

Based on the buyer’s problem and needs

Give the buyers an opportunity to improve themselves and their financial positions.

Four Ps of selling: Power, Profit, Pleasure, Prestige.

Improve the person’s lifestyle: ◦ Features and Usefulness of the product or

service

◦ Benefits: physical and spiritual satisfaction◦ Club membership : pleasure, power◦ Prestige of membership: pleasure, prestige.

Listening

50% of successful selling is listening

to the buyers

Listen to recognize and understand

buyers’ needs, wants, desires.

Show your attention and concern for

the clients.

Closing

Closing by assuming the follow-up

steps.

Ask directly to closing:

◦ When do you want to begin?

◦ Where would you like to locate your

store?

◦ When will you be able to start the training

program?

◦ How do wish to make payment for the

franchise fee? etc.

Selling is a Game

Successful sales people realize that selling is a game.

When selling, they are in the process of problem solving.

They are helping buyers to solve the problem.

10 Rules of Selling

Selecting target markets: necessary steps:

◦ Targeting markets

◦ Segmenting the markets

◦ Profiling the customer

◦ Qualifying the market segments.

Aspects of customer behavior

Customer needs: the desired goal or objectives which the customer wants to obtain

Customer benefits desired: the result the customer wishes to achieve. The reason why the prospective franchisee or end customer will buy the product.

Purchase characteristics: behavior and requirements affiliated with the customer’s buying habits.

Marketing Research

The Marketing Information System

(MIS) contains various information and

data collected from:

-Internal records

-Marketing Intelligence

-Information analysis

-Marketing Research

Marketing Research Process

Define the problem statement

Identify the research objectives

Developing research designs

(questionnaires)

Implementation of Research Plan

Analysis and Reporting of Results

Qualifying the Prospective Franchisee

Initial Call Process.