HOW ABOUT THE FRANCHISE AND 8Ps MARKETING APPROACHES? BY PROFESSOR DAVID IORNEM FIMC, CMC, FCIM, M.CAM, FIPFM Dip.M, MSc, PhD, D.Litt, rpa, FNMA BEING A PRESENTATION AT THE ICMCI CONGRESS ISTANBUL, TURKEY, SEPTEMBER 26, 2003 1 I!"#$%&!'# This paper is a response to the issues raised by the authors of the discussion paper on CMC Brand Strategy (Shanker:2003) Since the paper has been circu!ated to o"er 3# countries and presentations are e$pected fro% each %e%ber &nstitute of the &nternationa! Counci! of Manage%ent Consu!ting &nstitute (&CMC&) the &MC ' (igeria paper has been designed to focus on one crucia! area: an appropriate %arketing strategy for the CMC brand &n su%%ary) the presentation ad"ocates franchising strategy a%ong CMC stakeho!ders in a hierarchica! partnership sche%e *hi!e adopting the ser"ice %arketing approach in its pro%otion
R()(*+! B"+$ M++,(-(! T("-s +$ C#&(.!s D(/'($ The presentation assu%es the fo!!o*ing interpretations for each of the *ords be!o* *here they occur: B"+$0 + na%e) ter%) sign) sy%bo!) or design) or a co%bination of these) intended to identify the goods or ser"ices of one se!!er or group of se!!ers and to differentiate the% fro% those of co%petitors (,ot!er and +rstrong) 1--.) B"+$ s!"+!(,1: The %anner in *hich a supp!ier of a ser"ice or good uses the brand na%e or brand %ark in co%%unicating product and ser"ice attributes Strategies %ay incorporate co%pany na%e p!us product identification) product na%e a!one) co%pany na%e p!us product na%e or product !ine na%e p!us product identification B"+$ (2%'!1: The "a!ue of the brand based on the e$tent to *hich it has high brand !oya!ty) na%e a*areness) percei"ed /ua!ity) strong brand associations) and other assets such as patents) trade%arks) and channe! re!ationships (,ot!er 0 +r%strong) 1--.) B"+$ E3!(s'#: 1sing a successfu! brand na%e to !aunch a ne* or %odified product in a ne* category B"+$ I-+,(: The set of be!iefs consu%ers ho!d about a particu!ar brand 2 F"+&4's(0 + contractua! association bet*een a %anufacturer) *ho!esa!er) or ser"ice organisation (a franchiser) and independent business peop!e (franchisees) *ho buy the right to o*n and operate one or %ore units in the franchise syste% F"+&4's( #",+'s+!'#: + contractua! "ertica! %arketing syste% in *hich a channe! %e%ber) ca!!ed a franchiser) !inks se"era! stages in the production'distribution process T4( CMC B"+$ CMC (Certified %anage%ent Consu!tant) is an internationa! certification %ark a*arded by the &MC of each &CMC& Me%ber Country on beha!f of the &CMC& and it represents e"idence of the highest standards in Manage%ent Consu!ting and adherence to the code of ethics of the profession (+dapted fro% the B21 2efinition) The British tend to !ook at the CMC in ter%s of the person This is a!so a "a!id %arketing standpoint +ccording to the 1, &MC) CMC stands for a %anage%ent consu!tant *ho has de%onstrated co%petence and understanding in a range of consu!tancy situations against an agreed standard and has signed up to the &MC Code of Conduct T4( V'(5s A,+'s! CMC B"+$', 3ithin the &CMC& circ!es) there are those *ho fee! that CMC is not and cannot be a brand4 that CMC is 5ust but a /ua!ification) and the rest of it But fro% a %arketing standpoint) CMC can be regarded as a brand &f it is not yet a brand) it can be %ade one if the &CMC& %e%ber &nstitutes reso!"e to do so CMC has a!! the trappings and potentia! of a brand CMC as a brand na%e is easy to pronounce) recogni6e and re%e%ber CMC suggests so%ething about the /ua!ity and benefits of using the consu!tant associated *ith it CMC is a distincti"e brand na%e 3 CMC trans!ates easi!y into other !anguages CMC is capab!e of registration and !ega! protection Considering the abo"e factors) it can be conc!uded that CMC is 7brandab!e8 The benefits of branding are se!f'e"ident but) perhaps) for the purpose of e%phasis) they need repeating T4( B((/'!s #/ B"+$', Branding enab!es a buyer or consu%er to de"e!op !oya!ty and carry out repeat purchases (Sche"ing) 1-9.:1:3) + brand a!so identifies the organi6ation behind the product or ser"ice) thus guaranteeing a consistent /ua!ity or satisfaction + brand product offers the opportunity to aggressi"e!y sti%u!ate de%and for the product To the custo%er) a branded product enab!es hi% or her to sing!e out the product) *hich a particu!ar se!!er is offering ;e !earns to trust and to accept it based on e$perience *ith it To be %eaningfu!!y ad"ertised and differentiated) branded %erchandise approach see%s a possib!e *ay out W4#s( B"+$ Is I!? &f the CMC is a brand) then *hose brand is it or shou!d it be< =uestions ha"e been raised in this connection Centra! to the /uestions is the assu%ption that 6(*("17#$18s "(s.#s'7')'!1 's, ' "(+)'!1, #7#$18s "(s.#s'7')'!19: The ICMCI, CMC Branding Strategy circu!ated to %e%bers presented these posers 1 3ho shou!d pro%ote the brand< 2 &s it the g!oba! !icensor) &CMC&< 3 &s it the nationa! &nstitutes< . &s it the responsibi!ity of the fir%s that e%p!oy indi"idua! CMCs< > &s it the responsibi!ity of the indi"idua! CMC< The %arketing princip!es guiding franchising can be he!pfu! in reso!"ing this) so%e*hat) co%p!icated issue The contro!s and /ua!ity assurance practices used by businesses that adopt franchising as a practice and strategy for reaching out to consu%ers can be app!ied in the . %arketing of CMC brand +!! stakeho!ders in the franchise p!ay ro!es in /ua!ity assurance and pro%otion of the franchise &f *e !ook at the &CMC&) nationa! &nstitutes) the fir%s that e%p!oy CMCs and the CMCs the%se!"es as partners and stakeho!ders in the pro%otion of the CMC brand) then there is no /uestion of responsibi!ities being !eft hanging for !ack of concern or out of any assu%ed confusion as to *hose responsibi!ity it is to pro%ote the CMC brand W4+! 's !4( A.."#."'+!( M+";(!', S!"+!(,1 /#" !4( CMC B"+$? This paper argues that the appropriate strategy is franchising But one needs to say %ore since the discussion is %eant to produce practica! proposa!s CMC is not a physica! product &t is not e"en a ser"ice in a any conte$t &t is a concept and an idea4 as such) CMC can be presented to target 7%arkets8 in such a %anner that it appea!s to their sub5ecti"e considerations Such sub5ecti"e factors %ay inc!ude: ?a!ue for %oney @e!iabi!ity Satisfaction Trust +cceptabi!ity A!oba! acceptance Brotected trade%ark Curther%ore) since the CMC as a brand concept rese%b!es or is !inked *ith ser"ice pro"ision) the :Bs approach espoused for ser"ice %arketing %ay be ski!!fu!!y adopted for its pro%otion The :Bs are: P"#$%&t D Meaning *hat is on offer to the c!ient This %ust be sub5ected to constant re"ie*) bearing in %ind changing c!ient e$pectations P)+&( D Meaning ho* to %ake the product a"ai!ab!e at the %ost con"enient p!aces for the target %arket) ie) current and prospecti"e c!ients P"'&( D Meaning *hat current and prospecti"e c!ients pay and are prepared to pay for the product > P"#-#!'# D Meaning the %ost effecti"e *ays CMC franchise stakeho!ders can co%%unicate to the "arious target groups to sti%u!ate greater a*areness) interest and patronage P41s'&+) E*'$(&( D Since) !ike a ser"ice) CMC is not tangib!e) cannot be fe!t) s%e!t or tasted as is the case *hen you *ant to buy con"entiona! products such as soaps) drinks or foods) ad"antage %ust be taken of e"ery opportunity to !ink CMC *ith *hat is physica! Such opportunities inc!ude CMC !abe!s on *e!! dressed consu!tants) CMC !ogos on office doors) !etter heads) brochures) co%p!i%entary cards) consu!tancy reports) etc P"#&(ss D @ecognising that a franchise sche%e is a process *hose success depends !arge!y on tea%*ork P(#.)( D E%phasising the i%portant ro!e) *hich persons *i!! p!ay &t is persons that *i!! ref!ect the "a!ue of CMC &t is persons that *i!! e$perience and pass 5udg%ent on CMC P"#-'s( D E%phasising that) consu!tants %ust de!i"er on their pro%ises This is of great i%portance because c!ients buy pro%ises of so!utions *hen they hire consu!tants P%7)'& R()+!'#s D CMC stakeho!ders need to carefu!!y identify the "arious pub!ics that can i%pact on CMC to *hich B@ co%%unications can be directed Such pub!ics inc!ude indi"idua! consu!tants) c!ients) big practices) s%a!! practices) other re!ated professiona! associations) re!e"ant agencies of the 1nited (ations) financia! institutions) etc +!! these : e!e%ents or "ariab!es ha"e potentia! to contribute to the understanding of the i%p!ications of institutiona!i6ing the CMC as a brand Brand %anage%ent concepts that %ay pro"e he!pfu! in this e$ercise inc!ude: B"+$ S!"+!(,1 < ;o* CMCs) fir%s and &MCs use the ser"ice attributes of CMC in co%%unicating *ith e$isting and prospecti"e c!ients B"+$ E2%'!1 < ;o* CMCFs "a!ue can be enhanced so as to increase brand !oya!ty) percei"ed /ua!ity) na%e a*areness) strong brand association and stakeho!ders (channe!) re!ationships B"+$ E3!(s'# < ;o* *e can use successfu! practices (both big and s%a!!) to !aunch the CMC into %arkets *here it is yet to %ake i%pact # B"+$ I-+,( < The set of be!iefs current!y he!d about the CMC brand ha"e to be studied and ana!ysed as a foundation for creating ne* ones and changing those disco"ered as undesirab!e I!("+) M+";(!', < This is the %arketing done by a ser"ice fir% designed to train and effecti"e!y %oti"ate its custo%er contact e%p!oyees and a!! the supporting ser"ice peop!e to *ork as a tea% to pro"ide custo%er satisfaction The &CMC& co%%unity needs to con"ince itse!f of the "irtues and "a!ues of CMC brand CMC needs to be %arketed interna!!y a%ong &CMC& %e%bers) a%ong CMCs in %e%ber &nstitutes and a%ong CMCs in fir%s C#&)%s'#s +$ R(&#--($+!'#s This Baper has argued that) in order to %ake the desired i%pact in the pro%otion of the CMC brand) the franchise approach *hich %obi!i6es the stakeho!ders in the franchise arrange%ent see%s appropriate and !ike!y to pro"e %ore capab!e of disabusing the %inds of those *ho fee! that 7e"erybodyFs business is nobodyFs business8 The stakeho!ders ha"e been identified as the &CMC&) the nationa! &nstitutes) the fir%s that e%p!oy CMCs and the indi"idua! CMCs +!! of the% are i%portant in the process The paper subscribes to the "ie* that the .Bs approach used in the %arketing of con"entiona! products is inade/uate for the pro%otion of the CMC brand &t is therefore reco%%ended that the :Bs approach shou!d be adopted and adapted for the pro%otion of the CMC brand
2ono"an) Gudith (2000) D9I9Y D'"(&! M+";(!',) ,ogan Bage) Hondon &orne%) 2a"id and (osakhare) Goseph Isa (2000) M+";(!', F#" C4%"&4 O",+'s+!'#s, G?C Bress ,aduna ,ot!er) Bhi!ip (2000) M+";(!', M++,(-(! !4( M'))('%- E$'!'#, Brentice';a!! of &ndia) (e* 2e!hi ,ot!er) Bhi!ip and +r%strong) Aary (1--.) P"'&'.)(s #/ M+";(!',) Brentice ;a!!) Eng!e*ood C!iffs) (e* Gersey Hanchaster) Aeof and @eyno!ds) Bau! (2000) M+";(!',, Made Si%p!e Books) Hondon @unyon) ,enneth E (1-:2) The P"+&!'&( #/ M+";(!',, Char!es E Merri!! Bub!ishing Co%pany) Co!u%bus) Ihio 9 Scheuing) Ebehard E (1-9.) N(5 P"#$%&! M++,(-(!, The 2ryden Bress) ;insda!e) &!!inois Strauss) Gudy and Crost) @ay%ond (2001) E=M+";(!',, Brentice ';a!!) (e* Gersey Shanker) A (2003) CMC B"+$ S!"+!(,1) &CMC& ?arey) @ichard G (2002) M+";(!', C#--%'&+!'#<P"'&'.)(s +$ P"+&!'&(, @out!edge) Hondon Jeitha%!) ?a!arie + and Bitner) Mary GI (1--#) S("*'&(s M+";(!', McAra* D ;i!!) Singapore
Summary: 12 Months to $1 Million: How to Pick a Winning Product, Build a Real Business, and Become a Seven-Figure Entrepreneur by Ryan Daniel Moran: Key Takeaways, Summary & Analysis