Open your mail on any given day and you'll find terrific
examples of marketing partnerships at work. Just take a look at the
next credit card solicitation that shows up on your desk; it
probably pitches a variety of services, from low-cost car rentals
to speedy Internet connections, offered by the bank's partners.
Building such strategic partnerships could be a smart move for you,
too. Your company can benefit from income-generating alliances and
avoid the financial risks inherent in other expansion tactics.
If you're ready to see what effects partnering can have on
your marketing muscle, here are three ways to take advantage of
marketing alliances:
1. Gain a competitive
advantage. When businesses that offer complementary
services team up, they often form a whole that's much greater
than the sum of its parts. They can market together to pitch and
win major accounts, provide additional services as a unit, and
diversify and expand their customer bases.
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For example, a plumbing parts and accessories showroom that
wants to market design services might partner with a remodeling
firm that specializes in upscale bathroom additions. To support and
promote the partnership, the two companies could run a joint
advertising campaign in the local newspaper and show prospects who
visit the showroom a brochure and video showcasing a completed
bathroom remodel. Both companies would benefit from the new revenue
stream: The retailer would gain a competitive advantage, and the
remodeling contractor would get exposure to the showroom's
retail customers.
Often, individual companies don't have all the expertise
required to win major government or corporate contracts. But by
choosing the right marketing partners, they can form teams with the
specific background and capabilities required. A Web design
company, for instance, that aims to solicit turnkey Web design and
management projects from major technology companies might beat its
competition by partnering with content providers experienced in
writing about high-tech issues.
2. Enhance your
image. What happens when a skills assessment and
placement firm in Seattle develops strategic partnerships with
similar, independently owned businesses in Chicago and Miami? It
creates the image of a firm with national scope, enabling the
company to target larger prospects-such as major corporations that
have offices in multiple locations. Setting up strategic
partnerships with businesses like yours in other cities can help
you expand your market area and target larger accounts. Another
benefit is sharing resources and marketing costs with your new
partners-to create a joint Web site, for example.
3. Reduce your
costs. Launching a new product can cost millions. But
what if you could launch or test market a product nationally for a
fraction of that cost, yet still gain input from experienced
marketing partners with a ready-made audience? That's what you
get when you form a strategic marketing partnership with a large
company or association that regularly markets to your target
audience.
Suppose you own a sports apparel business that manufactures a
new commemorative bomber-style jacket for auto racing car
enthusiasts. You could take a large financial risk by renting a
list and mounting a direct-mail campaign to market the new product
on your own, or you could partner with an association of racing
fans and offer your jacket as a special premium to its members.
Your product message would reach the association's highly
qualified membership in its regular package or catalog and thus
dramatically cut your costs.
There are unlimited ways to partner to achieve your marketing
objectives and reduce your financial risks. No matter what your
expansion plans may be-from launching a new product or service to
taking on additional markets-consider the advantages of building
strategic partnerships instead of going it alone. Whether you form
these alliances with other entrepreneurs or with major corporations
that have abundant marketing influence, strategic partnering will
help you successfully market your business without breaking the
bank.
Contact Kim T. Gordon, author of Bringing Home the Business, at www.smallbusinessnow.com.