In running its business, usually a company cooperating with one or more partners. Why and when do we need marketing partners? What can partnership marketing contribute to increasing brand awareness, product distribution, opening new markets or customer acquisition, and program funding?
Chapter 1
What is Partnership Marketing
Goals and
strategies drive a company’s success. Goals give an indication of where a
company is headed, while strategies indicate how the company is going to get
there (Richards, 2021). To achieve the
goal company can cooperate with one or more partners in partnership marketing. Partnership
marketing can be considered as the marketing strategy to reach goals. Partnership
marketing is the process of two brands collaborating in specified campaigns
that benefit both companies
Partnership
marketing also can be stated as Brand collaboration. The concept of Brand
Collaboration can be defined as the strategic alliance between two or more
brands for curating a unique and specific product or service with an intention
to carve a niche and attain a competitive advantage in the marketplace. It is
the modus operandi when two companies formulate a mutual alliance to work together
creating a marketing and sales synergy that is beneficial for all the parties
involved.
Chapter 2
Why and When Companies Need Partnership Marketing
Today Companies face dynamic market and business
competition. The competition is getting tough and tight. It is very important
for the company or brand to survive and thrive in the market retaining a
loyal set of customers by offering products that are unique and innovative.
The good thing is the company does not always face it alone. Companies can collaborate
and partner with others to achieve targets and get an advantage together,
two parties. In partnership, both can use the common resource and complete each
other. Partnership marketing offers valuable things to a company when the
company still have limitation in resources to reach the goals by giving the
value added to the partner at the same time.
To create new products, refine existing ones, improve
commercial results and build better promotional campaigns, marketers cannot work
alone, but rather must manage diverse networks in their tactical plans. These
networks extend both across and outside their own organizations and an
inability to build and sustain them is a cause of personal and marketing
failure. For example, a Forrester Research survey of leading European and American CEOs published in 2011
(Ernst et al, 2011) revealed that
two of the biggest blockages to successful marketing were deemed to be the marketing teams’ poor internal
collaboration with colleagues (30%) and poor external partnerships (33%).
According to Hinge’s 2021 High Growth Study, partnership marketing
is ranked as the most impactful marketing technique for professional
services firms. Moreover, when we looked at the segment of high-growth firms,
they found that the firms were 3x more likely to use marketing partnerships as
a part of their overall strategy than no-growth firms.
There are 10 types of the most common forms of partnership
marketing practiced by small, medium, and large businesses. The 10 Types are not
fixed, they are fluid and can be interchangeable depending on the partnership
in question:
Example of Partnership Marketing:
A. INDOMARET and BCA
Example of partnership marketing between Indomaret as the
biggest minimarket chain store and BCA in some type of cooperation. To increase
and reach more audiences BCA expand ATM placement in many stores in Indomaret
stores across Indonesia. For Indomaret it is also the advantage to give added
value such as high accessibility for ATMs and add convenience in shopping in
Indomaret. Indomaret and BCA also have the BCA Indomaret Card to extend the
market and strengthen loyalty both for BCA customers and Indomaret customers. Customers
have many benefits from the card (discounts, loyalty programs, etc.).
Source :https://www.gerai-kartukredit.com/2016/09/bca-card-indomaret.html; Indomaret Instagram
B. PRADA and ADIDAS
The collaboration of
Luxury Brands is also carried out by Adidas and Prada. To celebrate Adidas'
50th anniversary, Adidas is working with a fashion brand from Italy. In this
product collaboration, Adidas and Prada issued an all-white concept. They
present sneakers and bags. What makes it interesting is that this collaboration
will only have 700 pieces worldwide. According to Prada, the limited-edition
set is meant to honor timeless silhouettes and the raw simplicity that gave
both brands their name. Adidas and Prada make bags, and the bag is called the
Bowling Bag, the bag is made of white leather and features the Prada and Adidas
Originals logos. The luxury brand collaboration above is exciting, where LV and
Supreme made people surprised because they were considered to have different
fashion styles. Adidas and Prada issued very limited products. Even though
these brands are 'luxury brands' and they are costly, many people are very
interested and want to own these products.
Pictures : Prada and Adidas
collaboration to celebrate Adidas 50’th anniversary
The Advantage of Partnership Marketing:
Partnership marketing offers some advantages:
1.
Increase the coverage
Effective partnership marketing opens new market potential.
If a company has a limited budget, limited capacity/skill, or a difficult time
reaching out to a particular audience, it might look at a company in a
different industry/field that already has access to the audience and looks for
ways to partner. Partnerships between BCA
and Indomaret increase the distribution of ATMs and increase the audience. BCA can strengthen the penetration of its service
(ATM) and utilize Indomaret coverage of around 17.500 stores across Indonesia. For
Indomaret on the other side, ATM facilities in their stores increase added value
to Indomaret, bring value to their customer, and increase sales volume.
2.
Can reduce the cost to get a new customer
Effective Partnership marketing can be a low-cost strategy to
acquire new customers. Partnership marketing can replace the traditional approach
to building awareness, and expanding the market. For example, a collaboration between
Indomaret and BCA can replace the cost of advertising on TV or open many branches
in many areas to serve the customer.
3.
Create Synergy
When two parties work together the partnerships that will bring
additional creative minds to the table, which means more ideas and more
opportunities for both partners, which means it will increase decision-making quality, and ultimately it will boost performance. If this partnership relationship is managed correctly, marketing partnerships can be a powerful strategy to
build both brands and increase revenues.
4.
Strengthen Brand
Effective Partnership marketing via brand collaboration
beside increase customer base in the long term also will strengthen the brand
equity. Collaboration between Prada and Adidas will strengthen this brand
image.
Conclusion
In this dynamic competitive landscape and constantly changing
market partnership and marketing is the choice for the company as a way to
accelerate the business goals. Partnership marketing enables the participant to
reach something more than just do it alone. The partnership will be effective and
give the best result when the company finds the right partner. Partners must have
the same vision, and the same interest, and agree on common objectives. Partnership
Marketing can help participants to raise many things compared to just doing it alone.
It will help broaden the market, cut costs, strengthen distribution, and strengthen the brand.
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