MCS 1000 Lecture Notes - Lecture 15: Marketing Mix, Gross Margin, Telemarketing

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 1000
• Professor: Peter Kim

Document Summary

Creates customer value and has a significant impact on the economy. Critically important to the canadian and global economies. Retail sales in canada exceed billion. Outlets can be classified in several ways to make it easier to understand the differences among retail institutions. In a franchise system an individual or firm (the franchisee) contracts with a parent company (the franchisor) to set up a business or retail outlet. The franchisor usually assists in selecting the location, setting up the store or facility, advertising and training personnel. Franchisee usually pays a one-time franchise fee and an annual royalty, usually tied to the franchises sales. Franchising is attractive because it offers and opportunity for people to enter a well-known, established business for which managerial advice is provided. Franchisee fee may be less than the cost of setting up an independent business.