SELLING AND MARKETING RESEARCH

CHAPTER 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
Franchisors 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 buyers 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 persons 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 customers 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.