Laurence Matthew Villanueva Entrepreneurship

Grade 11-STEM Lesson 4

Activity 1
a. The Advertising Model
Definitions:
Advertising model is the strategic use of an advertising medium, with the goal of reaching a
specific target audience. An advertising medium is the type of media or vehicle the advertising is placed
on.
The nature of the Advertising Model:
Advertising is educational and dynamic in nature. It educates the customers about the new
products and their diversifications. Direct link: Advertising aims at establishing a direct link between the
manufacturer and the consumer.
How Advertising Model are used by entrepreneurs in making their business successful:
Advertising can increase sales by telling potential and current customers about your new product
launches, special offers and improvements. Apart from reminding current customers about your business,
advertising can also help to create or develop a distinctive brand for your business.
d. The Franchise Model
Definitions:
Franchising, or a business franchise model, is a contractual business model or relationship
whereby an established brand, known as the 'franchisor,' allows an independent business owner, or
franchisee, to use its branding, business model, and other intellectual property.
The nature of the Franchise Model:
A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the original
business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor's
goods or services under an existing business model and trademark.
How Franchise Model are used by entrepreneurs in making their business successful:
Levereging off the assets of franchisees helps franchisors grow their market share and brand
equity more quickly and effectively. Franchisor will reach the target customer more effectively through
co-operative advertising and promotion initiatives.
 References:
https://yourbusiness.azcentral.com/advertising-model-14446.html
https://itsaugust.com/nature-scope-and-benefits-of-advertising/
https://www.bgateway.com/resources/advertising-the-basics
https://sopa.tulane.edu/blog/franchise-business-model-everything-you-need-
know#:~:text=Franchising%2C%20or%20a%20business%20franchise,model%2C%20and%20ot
her%20intellectual%20property.
https://www.investopedia.com/terms/f/franchise.asp
https://francity.com/about-franchising/the-benefits-of-franchising/