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
 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.