joint venture marketing
joint venture marketing
Regardless, if this is your first joint venture marketing relationship or fiftieth already in place there are several items that are important to be aware of to minimize the risks that may jeopardize your existing business operations. When announcing a new joint venture make sure that potential problems with customers have been identified so they can be resolved asap. Keep a good line of communication with decision makers from the partner company to ensure fast resolution to any problems can be communicated to all key individuals responsible for handling the partnership. Understand the way your partner company operates and develop relationships with the key individuals that need to be on board in order for the relationship to be successful.
Identifying where there may be a potential customer problem is the number one joint venture risk, if someone does not perform, an existing customer could potentially be lost. If this occurs because of how a partner serviced the customers’ needs and acted during the process than it’s a poor reflection on both companies and harms both businesses. As soon as a business makes a recommendation they are also responsible in the consumers’ minds for their experience with the partner business. If they get turned off by their actions they may quickly take their business elsewhere altogether. The best thing is to make sure and do a blind test with a new partner so you are 100% confident of how the new partner will be receiving and servicing the clients referred over. If only quality partners are brought into the business model and they fit in terms of industry and customer bases then there should not be problems with customer interactions or any confusion among customers as to what is the purpose of the new joint venture.
Setting up a new joint venture is usually the easiest part of the whole marketing strategy, however failing to be properly communicate while implementing everything required is a significant risk. If a business is not fully capable of honoring the details in the joint venture agreement it is not worth moving forward with the marketing partnership. It is absolutely mandatory that both parties have clear and open communication channels with the individuals that are directly controlling the process from receiving a new business lead, selling, and then servicing the customer’s needs. To eliminate risks it is vital that communication channels are clearly defined and counterparts from both companies communicate regularly.
If there is a communication breakdown between joint venture companies when both are servicing a company and they need to work together in order to meet deadlines on a project it can be catastrophic to the relationship quickly. Other communication failures that often occur are failing to follow each item in the JV agreement from things as simple to not sending an approval email before going to print with marketing collateral to as severe as not properly reporting all sales transactions as determined in the agreement. Failure to communicate according to everyone’s expectations is a big reason many joint ventures eventually stop working or fail to get going after the initial agreement is put in place.
Internal Company Issues
It is vital when assessing potential risks that are present with a new joint venture marketing partner to learn about the company’s culture, decision making process, and who the real catalysts and decision makers are within a company or division. Failing to know who is really making the decisions regarding supporting a joint venture is a major risk. When developing a significant JV marketing relationship it can be vital to wine and dine decision makers as well as people that are potential gate keepers to those decision makers. When everyone in a company is supporting a new joint venture the chance for failure is reduced. It is a significant risk to do a joint venture if only one or two people are on board with the partnership for whatever internal reasons and success will involve more than the one or two that are committed.
Develop strong relationships with the individuals participating in a joint venture to ensure you have great communication and fully understand the purpose of the JV from the other company’s perspective and you will reduce your joint venture risks and be more at ease entering a new business relationship.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.