joint venture marketing
joint venture marketing
If your company is entering a new market with a joint venture partner, maximize the deal by doing your due diligence in building local demographic reports about the business and consumers so that when you attract new business they align with the focus of the company. It’s wise for companies that are selling products and services to a consumer as well as to businesses to know the market in detail and where the products will be offered. This data can be integrated into planning marketing efforts which will be required to reach and close the customers. Focus the joint venture partnership to seek out the most valuable demographics based on your report in order to see immediate returns on a new business relationship.
An important step to understanding a new geographic location is to understand the end customers for your business in the area. Regardless if your business services individuals or companies or a combination of both, the information that is required is similar and easy to acquire. First, ask your new business partner for any relevant business intelligence that they have on the local markets. It’s important to always double check partners work, gather additional details that are important for your decision making, and provide your analysis and ideas to your business partner. Sometimes you may encounter after the fact a business that doesn’t have much detailed information or it is outdated and needs to be done over.
There are many important factors to be gathered when creating a local demographic report. Each company will have to determine the items that are of most value to them and adjust according to the industry.
The basics should include the high level characteristics of the people and the business that are in the area. In the case of consumers, understanding details such as age, gender percentages, education levels, income levels, size of families and monthly spending budgets is very important. Creating a map of businesses located in a territory is essential to visualize the distribution of customers. Create maps of specific neighborhoods when approaching local consumers, as many neighborhoods will be different from one another despite being in the same city and relatively close.
Business reports may differ in the data collected. Identify prominent industries, specific companies by sector, such as transportation, construction, manufacturing, medical, education, etc.
Match With Existing Business Strategy
The purpose of conducting a basic market research study of the local area that you’re considering doing a business deal in to attract new business should be to execute a specific business strategy that includes forming joint venture marketing relationships to grow into new markets. During company planning, the target customer should be discussed on a regular basis. When conducting your assessments of an area, be sure you are confirming “yes” or “no” for the areas of interest to you.
It’s worth the time and resources if necessary to conduct surveys and contact potential customers in a specific area that you are considering doing a business deal for. Don’t always trust a potential partner’s interests in wanting to do a business deal, make sure the area will be a good fit for your products and services by researching yourself.
Business to Business Demographics
If your company does business directly with other business for a majority of the revenue made during the year than it’s important to take a slightly different angle on this task of reviewing new local markets. As a business owner that is negotiating a joint venture partnership with another company, it’s important to conduct your own in depth analysis. Call companies that you think might be potential clients for you and your JV partner in the area and see if they have any opinions about the company, positive or negative. Make sure that you take the time to review a company’s profile on Yelp, the Better Business Bureau, and other business review sites.
Companies with lots of negative issues that seem potentially harmful should be included in your decision making of whether to do the business deal or not. At the end of the day the point is to attract new business, so adjust and align with partners that have maintained strong brands in their local markets.
Review and understand the markets that you are doing business in. It may be necessary to create a binder of all the information on a specific location, but if it helps identify the right joint venture partner that attracts new business it’s worth the effort. Expand your business by doing deals with companies that have strong positions in their local markets that fit your criteria.
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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