Episode 103: Joint Ventures & Strategic Alliances
The cash from the chicken wing capital of the World Buffalo New York. You're listening to the marketing. Above all podcasts your source for all things well. Marketing and total world domination a nation. This is marketing above all. And this is your host Michael. Hey daryn welcome to episode one zero three. Today's topic is this strategic alliances collaborative marketing and joint ventures so in the digital marketing universe joint venture often has a pretty negative connotation and the reason for that is it typically has meant and someone promotes you you promote them and hope that it works out for the best so way back when let's call it ten years or so ago and even five years ago it would be okay. What's fine people that have emails. Let's promote their products. We we get to promote US and then we both make money now in theory that that's definitely great idea but what ended up happening was one of the partners. Wouldn't fully fulfill the obligation. The responses would be better with one of the partners versus the other and just kind of created a little a bit of a Icke type of environment with local businesses though strategic partnerships joint ventures and can of collaborative operative marketing can be a massively effective tactic that works for both sides. So let me give you a couple of examples in. You'll very quickly start. Our Ted realized I guess the power of this but also the vision of of what. I'm thinking for you to the most simple of examples as you walk into a business. Let's say it's a restaurant and then in the Waiting Area you'll see maybe whether it's a flyer liar couple of business cards promotion something for a business that is not a direct competitor of that restaurant. Maybe it's the laundry mat next ex- store. Maybe it's the movie theater. That's nearby so dinner and a movie. Show your restaurant receipt and get five dollars off your ticket or free popcorn or something like that. Those two businesses have made it a point to you leverage off their audiences. So let's say it's a restaurant and let's stick with the example of the movie theater while then at the movie theater as you're there then there's GonNa be some signs or business cards or flyers that say catch dinner before after the show at Xyz Z.. Restaurant Show your movie voucher and get twenty percents off your bill so the restaurant is driving business to the theater. The theaters driving business to the restaurant. And there's no hard cost to either business now if you think about. What's the downside to either of those businesses now my initial reaction Israeli. There's no downside. The only downside that I could see that if the food at the restaurant is in great and then people are like. Why are you sending us there or or the movie theater is grungy or something like that and then they're saying the same thing to the restaurant will we. Don't WanNa go to that theater. You WanNa make sure that. Both businesses have upstanding relationships in the community. But other than that. Then there's really no downside risk your both sending foot traffic to each of the respective businesses at absolutely no cost. That's a strategic partnership or a joint venture some other examples that you can start to do is partner with businesses that are similar to yours so you often hear this with car dealers if there's a couple of local Toyota dealers. Chances are semi high. That there's not just going to be an ad for one turn dealer right but rather an ad. That represents all different dealers in the area. If you're all selling somewhat of a similar product why not strategically partner in grow all the market share because the chances are high that if you're in a particular community ready you're going to draw from the people that are closer to your particular dealership so if you're doing a radio radio or a TV ad you can't just laser target one particular community in the geographic area. A lot of these radio stations. They reach forty fifty sixty miles so I would much rather go to the other Toyota dealers and say well. Let's actually join forces and let's let's invest some collective money and expand the share in general and in total that is a- an example of a strategic partnership now the piece was strategic partnerships and joint ventures and collaborative marketing. You WanNa make sure that they are equitable and fair relationships. Because that often is where things start to take a turn that isn't as productive. Where for one business business fields. They're getting the fair end of the stick. So if you were promoting a restaurant for example you're the movie theater and you've got big posters posters and signs and business cards and it's really apparent and then you walk into the restaurant and they have your tiny little sign in the corner that that's not necessarily surly affair relationship now where I'd love to see you take us to. The next level is to think about what else you can do you. What about that restaurant sending out an email blast and a couple of social media posts once a month for the restaurant. What about the restaurant doing the same thing for the movie theater. So you're not just having something in your location. But you're also oh strategically promoting you went to what values echina- bring world the values gonNA bring in reciprocity of the theater. Doing the same thing for you in a dozen cost you anything to do with it. Expands your customer base for essentially no marketing investment whatsoever ever. So what I'd like you to do is to make a list of some of the businesses that you could see yourself collaborating with and you gotta think outside the box here. I mean it doesn't have to be a business that's identical to yours by any means can be a business in the same area the same shopping shopping mall the same strip mall. It could be a business that you know both of your customers frequent for example bowl childcare centers and taekwondo for example. Or if you've got a childcare care center. What are the other places that they're going to be frequenting the pediatric doctor's Office for Example Playgrounds Fund Centers. So why not partner to help each other grow. You're not directly competing for those same customers but the key key again is to make sure that. There is a symbiotic relationship here because that again is when I've seen it take a negative spiral negative. Twist as where one business fields. They're doing a lot more and the thing you've got to keep in mind here is you've gotta maintain your expectations gotta maintain your expectations just because of businesses promoting you. It doesn't necessarily mean you're then going to get a flood of customers. You may help drive them. What customers and that very well may just mean that they're more interested in the other business unless it's distracting or taking away revenue from Your Business. There's really no harm in doing so. And if anything. That's going to continue to motivate the other business to one more when I've done strategic partnerships and things like that. I have been much more motivated when I start to see some success the times when I've been disengaged Canley is if the other business doing some promotion promotion and I hear crickets so that tells me they didn't do anything they didn't have a big audience or any kind of audience or just wasn't a fit but I will tell you that that's not GonNa get me to jump on a bed to make sure that I'm promoting other business but again if I agree to do it. I'm going to hold up my end of the bargain. So think about some businesses that you could do some strategic collaboration with that essentially cost both sides. Nothing and will continue to help grow both both businesses. Hope you've enjoyed today's episode on joint ventures and strategic partnerships. Get out there and take some action. Michael Tasers after starting off. Good morning good afternoon and good night. See you back here tomorrow by. Thank you for listening to this. Episode of marketing. Above all get out there make a change and take some action and hey don't forget to leave a five star review and tell all your friends. This is the greatest marketing podcast. Ever ever we look forward to seeing you here tomorrow.