Importance of Implementing Effective Partnership Marketing
Partnership marketing is a marketing approach where a business collaborates with another business for marketing campaigns. Through this collaboration, businesses come up with a marketing campaign that benefits both the businesses involved. Partnership marketing is more effective when both the businesses have the similar target audience.
There are primarily two types of partnership marketing: (1) Affiliate Marketing and (2) Distribution Marketing.
Under Affiliate Marketing, one business ties up with another business that acts as a publisher – through website, blogs, social media, newsletters, etc. – for the promotional purpose. The publisher drives the traffic from its published content to the affiliated business using affiliate links (hyperlinks), banner ads, promotional content, etc. In return, generally the publisher gets a percentage of revenue generated by the other business through the traffic generated from the publisher’s content.
Under Distribution Marketing, organizations collaborate with each other to distribute their products/ services, which may be bundled together. It helps both the businesses to synergize and utilize each other’s sales and distribution capability. It also enables them to provide better product/ services when bundled together. To understand how you can go about the partnership marketing for your business, keep reading further!
Choose Suitable Marketing Partner
Choosing the right marketing partner for your business plays a very important role. For this, the business must research about various partnership possibilities. The marketing partner must be chosen in a way that the partner does not cannibalize your sales, rather benefits your business. The marketing partner should have the similar set of values as your business to avoid future conflicts and to ensure the smooth function of the partnership marketing campaign. Also, the partner company should have similar set of target audience as your business to ensure that the marketing strategy applied, shall attract target audience for your business.
Have a Clear and Well-Defined Investment and Benefit Agreement
After choosing the right partner, it is important to decide the investment by each party and the benefits that shall be received. Having clarity on things well before hand shall be helpful to set the right expectations and to avoid any misunderstanding between both the businesses. Partnership itself means collaboration and co-operation. So, marketing strategies should be planned in such a way that both the partners benefit from it and things are done not just from one partner’s point of view.
Leverage Partner Capabilities
The very essence of partnership marketing is to manage marketing costs efficiently. Partnership marketing helps the businesses to leverage already built capabilities of other businesses and avoid investment in the similar capability building for sales, distribution, advertisements, branding, online content, etc. Hence, the partners should study and plan the capability building to reduce the duplication to ensure efficient use of collective investment and to save money.
Leverage Multiple Marketing Partners
Partnership with a company that already has a presence with the target audience to which the business wants to reach out shall help to generate brand awareness as well as sales. If the strategy is successful with one marketing partner, the business can consider emulating the similar marketing partnership with multiple businesses, making the business brand even more powerful. The ‘Snowball effect’ may come to play here.