joint venture marketing
Strategic alliances have become a major factor in today’s business models with their ability to enable business owners to offer more services to their most valued clients while delivering some of the most profitable streams of revenue.
Strengths of Strategic Alliances
According to recent research, 80% of surveyed CEOs found strategic alliances beneficial for several purposes:
- Quickly enter the marketplace
- Promptly obtain technology advancements without research costs
- Minimize budgetary costs typically associated with growth
To ascertain what type of strategic alliance is right for you, it is important to assess your business thoroughly. Are you looking to penetrate a greater volume of the market share? Are you looking to reach a potential partner’s customer base? Would you like to launch a new product line? Understanding your specific goals, as well as your market position and available resources will help you craft an appropriate strategic alliance.
Keep in mind, the main reason strategic alliances fail is because at least one of the partners is not happy with the results. Why does this occur? In most cases, it is because a solid plan was not created at the outset of the project.
Know Your Business and Your Partner’s
All strategic planning deals with three key questions:
- What do we do? It may sound simple, but to effectively join efforts with a strategic partner, you must have a good concept of what your business offers. Without a clear defined understanding of every aspect of your goods and/or services, it is nearly impossible to target a valuable strategic partner.
- Who do we serve? Every business has a target customer or client base. That doesn’t necessarily mean that your business will solely market to that target profile, but it gives you a deep understanding for who is using your products. This allows you to key in on the specifics when choosing an alliance partner.
- Who is our competition? In order to stay at least one step ahead, it is important to keep informed as to whom your competitors are and what they are doing. By ignoring this issue, it only gives your competition an edge on rising above your business.
Develop Your Plan
Alliances succeed with good planning. Whether you are looking to join email marketing campaigns, or perhaps a new product launch, a strategic alliance must have a clearly developed plan.
Your plan should define the following elements:
- Goals of the strategic alliance
- Specific marketing plans
- Analysis of cost sharing
- Defining the success of the relationship
- Encouragement of formal communication
- Marketing plan management details
Once a plan is in place, you can begin your proactive search for strategic alliance partners.
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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