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1. Avoiding the unnecessary trial and error period in starting and operating a new business.
2. Lower financial risk, compared to other ventures, because investment costs are lower and profit margins are higher.
3. Business Format Franchising complete packages ensure a ready to go “turnkey” franchised unit.
4. Managing a small business whilst depending on the power of the franchisor company which has a bigger organization.
5. The franchisee has an opportunity to run a proven business concept with a successful operational track record.
6. The franchisee has access to accumulated business experience and technical know-how in managing the business.
7. Easier purchasing, storing, and product display systems.
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Value of brand name determined by franchiser(owner of brand)
Introduction of new products determined by franchiser
Your reliability tied to the rest of the system
Some of the profit need to give to the franchiser
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Newspapers
Magazines
Radio
Television
Outdoor Media
Yellow Pages
Internet
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Advantages Disadvantages
Geographic selectivity
Short-term advertiser commitments
News value and immediacy
Year-round readership
High individual market coverage
Co-op and local tie-in availability
Short lead time
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Limited demographic selectivity
Limited color
Low pass-along rate
May be expensive
Advantages Disadvantages
Good reproduction
Demographic selectivity
Regional/local selectivity
Long advertising life
High pass-along rate
Long-term advertiser commitments
Slow audience build-up
Limited demonstration capabilities
Lack of urgency
Long lead time
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Advantages
Low cost
Immediacy of message
Short notice scheduling
No seasonal audience change
Highly portable
Short-term advertiser commitments
Entertainment carryover
Disadvantages
No visual treatment
Short advertising life
High frequency to generate comprehension and retention
Background distractions
Commercial clutter
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Advantages Disadvantages
Wide, diverse audience
Low cost per thousand
Creative opportunities for demonstration
Immediacy of messages
Entertainment carryover
Demographic selectivity with cable
Short life of message
Consumer skepticism
High campaign cost
Little demographic selectivity with stations
Long-term advertiser commitments
Long lead times for production
Commercial clutter
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Advantages Disadvantages
Repetition
Moderate cost
Flexibility
Geographic selectivity
Short message
Lack of demographic selectivity
High “noise” level
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Advantages
Disadvantages
Fast growing
Ability to reach narrow target audience
Short lead time
Moderate cost
Difficult to measure ad effectiveness and ROI
Ad exposure relies on
“click through” from banner ads
Not all consumers have access to Internet
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