joint venture marketing
joint venture marketing
Online businesses abound today, allowing business owners to attract a global market no matter how large or small their company might be. However, online marketing provides its own unique set of challenges, particularly in the area of consumer confidence.
While a brick and mortar store can create an environment that attracts customers quite easily, it is not so simple to provide the same type of environment in a virtual store. One way to build this consumer confidence is through joint venture marketing, where you can capitalize on the reputation and popularity of a more established business as you are building your own.
Why Consumers Spend
To understand how JV marketing plays into consumer confidence, it is important to explain why consumers spend their hard-earned dollars in the first place. Psychology plays a key role in getting customers to open up their wallets. Many studies have found that people are willing to purchase products that are effectively advertised, whether they “need” the products or not.
The key to building your business is to find those effective advertisements that will inspire consumers in this fashion. joint venture marketing falls into this category perfectly because customers who like one company’s products are also more likely to want the products offered by businesses associated with that company.
What’s in a Name?
Plenty, when it comes to corporate branding! Corporate branding is the process of helping customers identify your products and company apart from the competition. Branding sends a strong, consistent message to your customers every time they see your company name or logo. It builds customer loyalty and as a result – profits.
However, when you are a new business, it can be hard to establish your branding with the general public. One way to get customers to recognize you quickly is to associate your business with another company that is already established with the customer base you are trying to attract. While customers may see you in the shadow of the larger company at first, you can eventually build your own corporate branding so customers begin to recognize your name apart from your JV partner.
Reputation certainly builds consumer confidence, but it is hard to establish a positive reputation when you are a relative newbie to your industry. By riding in on the coat tails of an established company, you can create a reputation for your business much more quickly. When customers associate you with a business they already trust, they will be more likely to trust you as well. If you provide consistent quality in products and service, it won’t be long before that reputation will transfer from your JV partner to you.
joint venture marketing is about more than business; it is about understanding your customers’ needs and motivations. When you partner with another company in your industry, you can speed the process of building your reputation and consumer confidence. While potential customers may initially associate you with your JV partner, they will eventually see you as a separate entity that can successfully meet their needs. The process is expedited through the JV approach, so you see a rise in your bottom line and customer base much more quickly and effectively.
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.