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Planning An Advertising And Sales Strategy Marketing Plan

Advertising and Sales Strategy for Travel Agent Franchise Before embarking on any business opportunity it is necessary to consider the viability of the business, including the way that the new venture may be marketed and the products sold. If a new business is a franchise, then it may be argued some aspects of the have already been developed and proof of concept exists. If a franchise has been chosen, for example Cruise Planners; An American Express Representative, the potential franchise will still need to consider the way in which the business will be advertised and sales made. This franchise opportunity has been chosen as it requires a low initial investment.

Advertising Plan

The first consideration is the advertising plan, looking to assess what types of media may be used, and the best way of optimizing the budget available.

Budget

The budget for advertising is typically between 3% and 5% of the firms' sales (Visa, 2007). In the case of a travel company, where the revenue is generated by commissions that are earned in the travel products sold, the advertising budget should be based on commission that will come into the firm, which will be the firms' revenues, rather than the total value of the travel services sold. It may be estimated that in the first year this business will earn a modest $70,000 in the first year, based of the average of 14% commission of sales worth $500,000 in the first year. If the advertising budget is 5%, this gives an annual advertising budget of $3,500. This modest budget can be used effectively is the right strategies are used.

2.2

Media Used by Industry & Competitors

Media used by travel agents and the cruise industry varies greatly. Large cruise companies will utilize the mainstream mass media, including television, radio, and national magazines, as well as the internet. Cruise companies use very visible media to attract a mass market, which supports their own sales as well as their brand for the sales to be made by agents.

Travel agents have web sites,...

The target market is broad; in 2011 alone, it is estimated 11.2 million North Americans took a cruise holiday, in an industry worth $37.85 billion, and demand is increasing (Florida-Caribbean Cruise Association, 2012). With this large target market, it is likely that the traditional mass media reaches the target market. Many travelers will also access the internet, including travel forums where banners may be seen, or use search engines. There are also specialist cruise ands travel magazines, and national newspapers may have travel supplements at the weekend. Local newspapers may also reach the target market.
As social networking media is now well established, and with a penetration rate of 43%, it is highly likely than the average segment of the target market, who are also more likely to be using the internet than the average U.S. citizen, will be using this medium (Internet World Statistics, 2014).

3.4

Where Information Gathering Takes Place

Information gathering is undertaken through a smaller range of media. The cruise magazines are one source, but the main sources of information gathering are the internet, including travel review sites and forums, such as CruiseCritic.com, and other interactive sites, such as Facebook, as well as information gathered directly from travel agents who sell the cruises.

3.5

Affordable Media

The mass media is not viable with such a limited budget. However, when looking at information gathering by the potential customers there is an indication of more cost effective mediums. The use of the internet, with the development of a web site that is search engine optimized may be beneficial, especially if it is set up to allow past…

Sources used in this document:
References

Dickinson, Bob; Vladimir, Andy, (2007), Selling the Sea: An Inside Look at the Cruise Industry, John Wiley & Sons

Florida-Caribbean Cruise Association (2012), Cruise Industry Overview - 2012, The State of the Industry, http://www.f-cca.com/downloads/2012-Cruise-Industry-Overview-Statistics.pdf

Franchise Opportunities, (2014), accessed at http://www.franchise.com / on 14th July 2014

Internet World Statistics, (2014), United States of America Internet and Facebook Users Stats, accessed at http://www.internetworldstats.com/stats26.htm on 14th July 2014
Visa, (2007), Advertising, accessed at http://www.va-interactive.com/visa/workshops/advertising/advertising.html on 14th July 2014
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