How to Build Marketing Partnerships
How to Build Marketing Partnerships
By Stephanie FritschI went to an event about two weeks ago at an exceptionally high-end boutique in the wealthy enclave of Short Hills, New Jersey, part of an international chain that felt the effects of a down economy. The retailer closed the store for a private shopping event on behalf of a local non-profit school for disabled children. The guest list included patrons of the school?by the end of the evening, they were also patrons of the store. The school received ten percent of the proceeds and a lovely cocktail reception that helped to further donor relations. The retailer gained far more?a database of affluent, local customers, a peak evening of sales (people spend far more when they know proceeds go to charity) and the reputation of being civic-minded and socially conscious. Costs were outweighed by profit, lead generation, and good will. Everybody benefited from this simple and successful marketing partnership.
When I suggest marketing partnerships to emerging companies, they are often overwhelmed by the prospect of ?partnership.? They associate it with business partnerships, which are far more complex, long-ranging, and fraught with hurtles. Marketing partnerships can be as big or small as you like; a one-shot, or a relationship with longevity. They can involve national organizations and companies, or be done on the local level. One of the key reasons to build these opportunities is greater value of the marketing dollar?by bartering your own capabilities, you can enhance exposure of your product or service to a select professional or consumer audience you just can?t reach within your budget, and in any other way.
Partnerships can address a multitude of marketing problems. A cosmeceutical manufacturer with successful sales in catalogs wanted to grow to the next level. She knew she had to place products at the retail level to build a base of consumers. But retailers, with limited shelf space, didn?t want an unknown label with a small following. While shopping one weekday, she noticed her local mall was painfully empty?and inspiration struck.
She offered the mall management executives a deal: if they gave her low-cost space to run an interactive event during the week, she would use her company?s well-honed media list and consumer mailing capabilities to drive key customers?women with children?into the mall during its slowest time. To entice those customers, she rented an inflatable ball pit to ?babysit? kids while moms got free five-minute facials and learned about her product line. To build relationships with retailers at the mall, she offered to distribute same-day store discount offers to event attendees, helping build retail traffic on a ?dead? day.
The event was a success. The cosmeceutical manufacturer generated hundreds of potential customers for her new database. A retailer, impressed by response to the event, offered her shelf space for her products. The mall was happy with its participation, too. This event promotion would serve as the model; the program has since been replicated around the country with consistent results. Mission accomplished with minimal dollars spent.
If this all sounds too good to be true?well, it is. Not all marketing partnerships go smoothly and not all achieve the goals they were expected to fulfill. But one of the causes of less-than-desired results is a lack of strategic planning from the get-go. When a potential marketing partner is found or finds you, there is a tendency for people to jump feet first. Everyone seems to get excited about the prospect of a marketing initiative, without taking the time to evaluate whether this partnership serves the needs of both parties. This is also why some marketing partnerships, despite endless back-and-forth discussions, don?t come to fruition.
Here are five assessment points to consider when beginning your search for a partner, or evaluating a marketing opportunity that comes to you:
What are your goals?
Are you looking to develop customers? Increase brand recall? Enhance relations with an existing customer base? Introduce product or service extensions? Your objectives should determine those with whom you partner with and the kind of program you implement. Be careful not to become enamored of a marketing partnership that does not satisfy a primary business goal for your company?even if it has considerable appeal.
Who are you looking to reach?
The target audience is key here. Identify primary and secondary customer attributes, and set criteria. If a potential partner doesn?t deliver those prospects, consider another opportunity.
What other types of businesses can effectively reach your customers?
Think about contacting those related businesses that are reaching and engaging with the same decision-makers as you are. For example, if a car dealership is looking to acquire fleet leasing contracts, it might want to explore partnership with a corporate travel planning company or a mobile technology provider. It goes without saying, you are seeking a complementary partner?not a competitor.
What other types of non-traditional opportunities can broaden your business?
Do your homework and think ?out-of-the-box??Do your decision-makers attend a local charity golf outing? Are they members of a national business association? Do they read the business section of a regional paper? Give yourself permission to explore all of the options available, even if they are not conventional marketing venues for your business.
What capabilities can you offer?
You may be surprised what you can do for other companies. Do you have shipping and fulfillment capabilities that will make it easy to send out promotional packages for partners?
Do you have sample products partners can distribute at trade events? Do you have a much-visited website where partners can be promoted? Can you provide printing or design services? Locations for events? E-mail blasts and other marketing technology? A valued database? Look at your company from dozens of angles to see not what you are, but what you can provide that might be meaningful and beneficial to a partnering organization. And attach a fair market value to those capabilities in order to discuss them with partners in a professional manner.
How much can you spend?
While it does happen on occasion, don?t expect to walk away from the bargaining table without putting out a certain amount of cash?or providing a significant amount of capability that will cost in time, effort and materials. It is not wise to waste anybody?s time, including your own. So know your top dollar amount upfront and work from there. You can always scale back an idea to accommodate budgets, but without a base figure to work with, you?ll be spinning your wheels?and those of a possible partner.
Stephanie Fritsch is the president of Stephanie Fritsch Communications, a marketing and promotions consultancy in Montclair, NJ. Stephanie can be reached at fritschcom@earthlink.net
