joint venture marketing
joint venture marketing
In a marketplace where being noticed is an extremely difficult feat, many small companies are joining forces to create better products to get ahead of the competition. An example of this is Sony-Ericsson, a joint venture between the Japanese-owned electronics company, Sony, and the Swedish-based telecommunications company, Ericsson, which makes mobile phones. Each company agreed to stop making its own separate brand of phone in order to combine Sony’s electronics knowledge with Ericsson’s technological advances in communications to produce a better quality of phone.
Finding the Right Partner
In order for joint venture marketing between two companies to be effective, both companies need to have the same goals for the venture. Before entering into a JV partnership, do the proper research on the potential partner. Make sure they can offer your company what you’re looking for from a joint venture. By joining hands with a larger, non-competitive business partner, the larger business can offer the smaller business highly valuable assets and a more extensive consumer base potentially interested in your products or services. Small businesses can save thousands of dollars in marketing expenses but still reach their targeted audience. Identifying non-competing companies that serve a consumer base similar to yours is essential.
Surpass the Competition
Developing a product or having a product for your new joint venture that stands out among your competitors will be crucial to the success of your alliance. Pooling your research and development efforts with your partners to make sure your product can compete with your competition is a good place to start. Use all available resources to make your product marketable to the targeted audience. This will only increase profit margins and make your product or service stand out from the pack.
A small business wanting to get noticed in a huge marketplace can be expensive. When small businesses partner up in a joint venture the costs are cut in half, which means more profit for the companies because they are not shouldering the entire cost of marketing, research and development.
By using all the resources available to your company in a joint venture, your business and your JV partner may decide to form a new company. Many of the companies we know today were once joint ventures between two companies trying to get ahead of their competitors. Cell phone provider Cingular was a joint venture between SBC and BellSouth. SBC bought AT&T, renaming itself AT&T, and then bought BellSouth, Cingular is now AT&T Wireless.
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.
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