Profitable Marketing Partnerships

I started this month’s E-Bulletin with the intention of writing about competitors. I drew up a list of points I wanted to make and started to think about fleshing out the details. On reading through my initial notes I realised that a review of competitors, and how they might impact on your business, could turn into a pretty negative article. On a sunny June afternoon I didn’t want to look on the downside of anything and on reflection, looking through my list, I realised the same or similar points could be put to good use in developing marketing partnerships.

What do I mean by a marketing partnership?
I suppose I’m referring to a mutually beneficial business arrangement where two companies join forces in pursuit of new business, new clients, or new markets. A partnership that’s well planned and thought through, with long term goals rather than short term quick wins, and fits sensibly with both organisations’ overall corporate goals and plans.

The type of partnerships I’m referring to are common amongst big businesses and particularly in sales driven organisations. In the financial services industry for example, where product providers (insurance companies and credit card companies) join forces with other organisations (like banks or membership organisations) to distribute their products. These partnerships can only be sustained when both parties get real benefits and that has to be more than just from financial reward, it should also relate to things like improved perception of their brand and/or an enhanced customer offer or experience. Which is why so many of them are short lived.

And partnerships are not just a feature of the commercial world. The Government is also encouraging marketing partnerships in the world of training and education, where duplication of provision and quality standards are driving schools to work more closely together with each other and further education colleges to deliver more of what the market wants – and if they don’t they face the risk of losing funding.

How marketing partnerships can work for you
For smaller businesses and independent professionals marketing partnerships can be a very effective way of growing your business, penetrating new markets, test marketing new products or researching the views of customers.

So what factors should you look for in a marketing partner?

Match of strategic priorities When thinking about potential partners think about the following questions. Are you approaching the same markets? Do you have a similar vision of the type of customers that you want to attract? A marketing partnership between Kwik Save and BMW wouldn’t stand a change – but one between Asda and Ford might – since the demographics of their audience are similar.
Ultimately you need to satisfy yourself that you can work together to achieve mutually beneficial goals. And of course your goals may be different to your partners. You may want to test out a new product they may simply want to raise their profile amongst a particular group of potential customers or in a new market.
Strengths and Weaknesses Do you know and understand their business strengths and weaknesses and probably more to the point are you being completely honest about your own? Have you thought about how you can complement each other? There’s little point joining forces with an organisation that suffers the same weaknesses that you have. Too many marketing partnerships fail because both parties are looking for help in an area of shared weakness. For example I’ve spoken to firms who’ve decided to form a marketing partnership to penetrate a new market they both want to enter but as yet have no routes into. Invariable they struggle or fail completely. Instead I advise them to look for a partner who already has access to the market – but perhaps could benefit from their expertise in product development or could gain added credibility by increasing their product range.
Image and Credibility What do you (and the market in general) think of your potential partner? And what do they think of you? Is there a nature ‘fit’ – does their corporate image match and complement yours? Does the partner already have a presence in the market you are planning to approach together? If so what do people think of them? What’s the word on the street?

Again it’s easy to spot potential mismatches. Make sure you look closely at the image of the business you are considering developing a partnership with – look at things like their product quality, service standards, client care record. Ask them how many clients they win (and lose) per annum. And if they don’t know – ask yourself how closely they are managing their sales operation – and how useful they would be as a marketing partner.

Are they a credible partner for you? What’s their experience in this kind of activity – have they tried before and failed? Don’t necessarily dismiss them on this basis but make sure you understand why.

People All businesses, after all, are made up of people. Can you get along with the people in your potential partner organisation? Do you rate their individual skills and experience? Would you be happy to have them representing your business? Do you really understand each other – are you on the same wave length and can you strike the right kind of business partnership?
When thinking about potential partners think about the following questions. Are you approaching the same markets? Do you have a similar vision of the type of customers that you want to attract? A marketing partnership between Kwik Save and BMW wouldn’t stand a chance – but one between Asda and Ford might – since the demographics of their audience are similar.

If you are thinking of entering into a marketing partnership with any business, large or small, consider these factors before you sign a contract or make any kind of agreement. And remember the Second Opinion Marketing mantra – plan it, before you do it. But don’t spend so long trying to make it perfect that you never try anything new.

And to return to my point about competitors for a moment – might any of your competitors make good marketing partners?

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