What is marketing strategy?
T ask 2. R ead and retell the text.
Many hotel, motel, gas station, and fast-food chains are franchises.
A franchise is a contract in which a franchisor (fran-chy-ZOR) sells to
another business the right to use its name and sell its products.
The person
or business buying these rights, called the franchisee (fran-chy-ZEE),
pays a fee that m ay include a percentage o f all money taken in. If a person
buys
a motel franchise, that person agrees to pay the motel chain a certain
fee plus a portion o f the profits for as long as his or her motel stays in
business.
In return, the 54 chain will help the franchisee set up the motel.
Often, the chain will have a training program to teach the franchisee about
the business and set the standards o f business operations. Advantages: As
practiced in retailing, franchising offers franchisees the advantage o f
starting up a new business quickly based
on a proven trademark and
formula o f doing business, as opposed to having to build a new business
and brand from scratch (often in the face o f
aggressive competition from
franchise operators). As long as their brand and formula are carefully
designed and properly executed, franchisors are able to expand their brand
very rapidly across
countries and continents, and can reap enormous
profits in the process, while the franchisees do all the hard work o f
dealing
with customers face-to-face. Additionally, the franchisor is able to build
a
captive distribution network, with no or very little financial
commitment. For some consumers, having franchises
offer a consistent
product or service makes life easier. They kn ow what to expect when
entering a franchised establishment.
T ask 3. Give y o u r idea on the topic” What strategies do you think are
good for sales?”