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More Franchisees Face Off Against Their Franchiser

Posted by Paul Christ February 11, 2012

Tough Times for Franchising (Wall Street Journal)

So You Want In? How to Assess a Franchise Opportunity (Wall Street Journal)

In the retailing industry, franchise operations have long been perceived as a less risky road to retail success for both the franchise operator (a.k.a. franchiser) and the entrepreneur who purchases the right to operate a franchise (a.k.a. franchisee).  As we note in our Retailing tutorial, a franchise arrangement offers significant advantages to both franchiser and franchisee.  The biggest advantage for both groups is that the business can potentially be built more quickly with less out of pocket costs.

Additionally, many entrepreneurs believe that acquiring a franchise is a much more reliable way of entering retailing compared to starting a retail operation on their own.  At least, that is what the franchise industry wants perspective entrepreneurs to believe.  While franchises overall may offer slightly better odds than staring a retail store from scratch, the reality is that franchise failures do exist and can occur in large numbers.

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Retailers Battle Back Against Price-Comparing Shoppers

Posted by Paul Christ January 25, 2012

Showdown Over 'Showrooming' (Wall Street Journal)

Store-based retailers are struggling to deal with the modern shopper.  More and more retailers are seeing consumers enter their stores, spend time looking around and then leave without making a purchase.  If retailers watch closely, they also will notice that consumers are not only looking and touching the merchandise, they are using their mobile phones to compare prices against other retail outlets.  Retailers are finding this to be a real problem, especially when consumers are comparing products found in a store-based retailer to products offered by online retailers.

Of course, many store-based retailers have a valid reason to be worried.  Here they are spending large amounts on inventory, store personnel, equipment and real estate, only to see some consumers use them only as a showroom for products since they are more likely to buy online.  This is particularly the case for more expensive products and for products consumers do not need immediately.

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Drug Reps See Their World Changing

Posted by Paul Christ January 13, 2012

Drug Reps Soften Their Sales Pitches (New York Times)

As we discuss in the Types of Selling Roles tutorial, the tasks carried out by salespeople differ depending on their job objectives.  For example, one of the most interesting differences is that the main task for some salespeople is not to convince a sales prospect to make a purchase; rather their main job is to convince the prospect to influence others to make a purchase.

Salespeople who call on “order influencers” play a key role for many types of companies, particularly in the pharmaceutical industry.  Called missionary sellers or product detailers, the typical pharmaceutical sales rep visits doctors’ offices and hospitals where they discuss products and provide samples.  But these sellers usually do not discuss products with the person who actually uses and pays for the medications, the patient.

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Now Available – KnowThis: Marketing Basics, 2nd Edition

Posted by Paul Christ January 04, 2012

Finally!!!

Today we are happy to announce the publication of KnowThis: Marketing Basics, 2nd Edition. We know this is long overdue, but we feel the final result is well worth the extra time.

This update started over 12 months ago and at times seemed to have no end in sight.  But by late 2011 things came together rather quickly and resulted in a new edition that is a significant update over the well-received first edition.

Overall, we feel the 2nd Edition continues our practice of offering comprehensive coverage of marketing concepts.  In fact, this new edition expands on the coverage offered in the first edition.  Compared to the 1st Edition, KnowThis: Marketing Basics, 2nd Edition presents a number of enhancements including:

• contains nearly 20% new material and is expanded to 420 pages
• includes over 150 newly presented real-world marketing examples
• presents new Marketing Story boxes examining over 40 selected stories found in major media publications
• features significantly expanded coverage of global marketing and emerging technologies
• offers an enhanced design including a larger book size and improved graphics

And best of all, the cost is still extremely affordable at only (US) $30!

To learn more about the book and how to order click here.

Television Ads Are Not Just for TV Anymore

Posted by Paul Christ December 30, 2011

E*Trade’s Baby Creates the Most Online Buzz (New York Times)

The key promotional method used by many consumer products companies, especially those targeting the mass market, is the television advertisement.  Even though television viewing has declined over the last 10 to 20 years, the amount spent on TV ads remains large, with one estimate suggesting that 2011 spending will exceed $60 billion.

While television advertising continues to be a critical part of promotion strategy, many marketers have also figured out that TV ads are not just for television.  They understand the expense in producing a television commercial can be spread over many other media, including viewing ads on computer screens and mobile devices.  In fact, for some products the real value of TV advertising comes with the viewing that takes place outside of the consumers’ living room.

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McDonald’s Finds Loophole on Banned Promotion

Posted by Paul Christ December 01, 2011

McDonald's Will Charge For Happy Meal Toys in SF (San Francisco Chronicle)

In November 2010, we made note of a decision by the city of San Francisco to ban fast food establishments from offering free toys with the purchase of meals targeted to children.  The most famous promotion tied to meals is the McDonald’s Happy Meal, which is purchased thousands of times per day throughout the U.S.  The leaders of the City by the Bay, instituted the ban because they believe the offer of free product encourages poor eating habits and helps contribute to an increase in childhood obesity.  (This issue is also being raised by the Federal Trade Commission, which has proposed changes to how food is marketed to children.)

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