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Chapter 7 -Marketing and branding (2) (Francises (Disadvantages to the…
Chapter 7 -Marketing and branding (2)
Service marketing
Physical evidence
Buying something intangible e.g. over the internet can be seen as risky - show potential customers what they are buying
Helps demonstrate and confirm assumptions of the consumer
Location and physical appearance of the business premises adds to the quality
Process
Customers arent interested in the running of the business, they want correct systems to be in place
Process should not be overlooked. Customers may be left with a negative impression of business process
Process is crucial when coming to customer satisfaction received
Concentrate on how the customers will experience business systems
People
After sales services and advice add value
Employees who have contact are correctly trained
Brand and reputation rests in the hands of people
Anyone who comes into contact with your consumer will have an impact on them
Factors influencing a buyer's decision
Socio-cultural factors
Family size
Social class
Cultural
Personal factors
Economic factors
Interest rate
Exchange rate
Psychological factors
Perception - influenced by your beliefs
Attitudes - Regarding past experiences
Motivation - by adverts they watch
Unethical marketing
Principles of unethical marketing
All marketing should be honest and truthful
Comply with international standards and best practice
Privacy of the consumer should not be compromised
Consumers should be treated fairly based on the nature of the product
Comply with regulations and standards as established by governments
Types of unethical marketing
Surrogate advertising - advertising of cigarettes and alcohol
Children in adverts
False brand comparison
Materialism
Exaggeration
Deceptive names which creates confusion/ false expectations
Selling second hand goods as new
Unacceptable language / discrimination
Francises
Disadvantages to the franchisee
Franchisers may stop giving the support promised
Entrepreneurs who want a challenge will become bored
Cost to establish is high and monthly royalties
Advantages for the franchisor
Franchisees are more committed to making a success
No staff problems
Expand his business without large capital
Advantages to the franchisee
Access to advice from the franchisor
Franchise agreement offers franchisee legal protection
Easier to raise borrowed capital
Franchise marketing
Franchisors have comprehensive marketing plans
Franchisees may perform their own marketing initatives keep a steady and constistent customer base
Franchisees receive an outline of the marketing plan
Disadvantages to the franchisor
Doesnt have direct control over franchisees
Administrative duties - collecting royalties and controlling the brand
Can find it difficult to keep training and giving assistance to all franchisees