Joint Marketing might be the answer to some of today’s main macro trends. The current context has raised all bars and sticking together might just be the way out.
Looking out for macro trends paints a whole new business environment. This Accenture Report sketches the main worldwide happenings and predicts their impact on organizations. They’re pointing out to the following 5 main trends:
- Consumer Trends
- More than half of the world’s population is urban based. That complicates our needs.
- The opposite ends of the life cycle sectors are where population grows. We’re registering increases in the young and old extremes. This means we need to start creating specific products or job packs for those age sectors.
- Not only do consumers access overwhelming amounts of information, but they generate content themselves. They’re a lot more knowledgeable, connected, and have more sophisticated interests. This is a loud call out on our customer care systems and quality standards
- Digital Security – According to another Accenture study, approximately 44% of today’s consumers are wary about how companies use their personal information. This era’s hot, new concept is digital responsibility. Entrepreneurs’ new challenge is leveraging technologies and data to develop all business dimensions.
- Needs complexity and Resources Limitations – World’s oldest challenge is now as clear as ever. The technologies we’re developing request scarce resources. This way, economies need to separate economic growth from traditional resources.
By defining a new demand, these trends have set a new economic order. One that’s asking for a more complex and sustainability-focused business model. In this buyer controlled and social-powered environment, you want to differentiate. Being “something else” will put your shop right back onto customers’ radar. But, “being” refers to image and “character”, a.k.a. your brand. So, if it’s a bit difficult to do it on your own, sticking together might just be the answer for you.
This article approaches joint marketing, so, here’s what you’ll gain from reading it:
- An idea of today’s macro trends and how they influence the way we do businesses
- More than half of the world’s population is urban based.
- 44% of today’s consumers are wary about how companies use their personal information
- Consumers generate content themselves
- What would Joint Marketing serve you for?
- What Joint Marketing is and its main characteristics
- 3 awesome examples of Joint Marketing campaigns
You’ll want to resort to Joint Marketing to…
- Diversify your customer base – Tapping into another company’s audience is a proper way to expand your own reach. Both in numbers and structure. Since they’re the ones to initiate the connection, customers come to you. Not the other way around.
Remember the age trend and how the population is increasing in its extremities? Joint Marketing might be the response to your marketing campaign towards the elderly. - Expanding your existing customer base – Association also absorbs your extended audience attention. It’s a change, it’s providing added value and it will drive your current target to buzz about it. Your current crowds bringing in their networks will increase your market share. Thus, you’ll build more credibility and a stronger competitive position.
Remember the megatrend referring to consumers being more informed and connected than before? You can use strategic Joint Marketing to capitalize on these social media linkage. Despite being somewhat intrusive, when done right, social commerce is a valuable opportunity. - Refreshing your products and services perceived value – Nowadays, challenging status quo is our biggest paradigm. Status Quo refers to the value the customer expects to get when purchasing your product. Creating a new experiential package to offer more, touches just that. On a side note, a 2016 Eldman Trust study shows that 1 in 2 customers believes greed and money drive business innovation.
Remember when we proved we needed to focus on digital responsibility? Social-cause based Joint Marketing could be your answer to solidifying your crowd’s trust. This way, you’ll notice stronger customer engagement and loyalty.
Joint Marketing as a tactic to Effectively Position Your Brand
According to HubSpot, Co-Branding is when two companies combine their products or expertise to create an even more valuable product or offer. They form an alliance, a partnership to work together, creating marketing synergy.
Joint Marketing works because it increases Brand Familiarity and enhances positive sentiment, as well. Moreover, it’s the social era. Every action that fosters getting together and synergy will be successful.
By joining forces, brands showcase networking so that their brand communities do the same.
Key characteristics of Joint Marketing
- Conversion Driver
The most important feature of Joint Marketing is being focused. Like any other marketing effort, integrated marketing campaigns need to respond to audience needs.
You drive conversions through Joint Marketing if you make sure you’re following these steps: -
Build Presence – Where do your customers spend most of their time? On (mobile) Social Apps and in physical environments. Social Media and events are the two most effective marketing tactics to be present.
TIP: A powerful question to figure out where your audience is: “What do they need your new product for?” Or, in other words: “What will they do with your new product/service after buying it?” -
Build Brand Equity – Your regular consumer’s perception of the brand’s name defines brand equity. It’s all about the image. Have you ever noticed what makes the difference between what makes your T-Shirt look new or worn out? 2 things: ironing and colors! If you’re wearing ironed, bright colored clothes people will perceive a neat, has-it-all-together person. That inspires trust and will also invite them to approach you. The same happens in business. Ironing refers to brand consistency, strength, and approachability.
TIP: A powerful question to figure out how your audience perceives you is: “What do their emails sound like?” -
Build an excellent distribution network – Online shoppers want their shipment free and fast. When they’re not pleased with delivery, more than half of your customers switch provider. We talked about this here.
TIP: Add in a handwritten Thank You note. (We explained here why) - Complement, don’t compete
When you do Joint Marketing you want to solve extra, but close needs. Your “partner in crime” needs to be your complementary, so that together, you meet more demands. - Similar, but not identical customer
What’s the purpose of serving the same customers unless you, actually, merge? - Perfect Timing
Imagine what would the impact of camera phones had been in the ’70s.
A couple of years ago, I read this amazing book – The Road Less Travelled. Scott M. Fitzgerald, an American psychiatrist wrote it in the ’70s. But it had no audience response, due to breakthrough ideas. Now, it’s a best seller. We weren’t prepared back then.
Also, remember James Cameron producing Avatar? He had to wait 10 years so that scientists would develop the 3D technologies he needed. 10 years!
The conclusion: because it’s not about us, but our audience pool, they have to confirm everything we do. So, let’s see how others have done it in time.
3 awesome examples of Joint Marketing to enhance Brand Positioning
Compaq & Intel
Compaq & Intel
Where do they meet?
IntangibleBusiness states that back in 1991, Intel Inside became the first trademark in the electrical component industry.
Why do they work?
The Partnership worked because they pioneered Creating a Quality Standard. They set out to educate the market in the differences between microprocessors. Then, they positioned towards both retail sales and consumers as valuable Intel processors.
Results
The same article states that:
- 1991 – 24% European PC buyers were familiar with the Intel Inside logos
- 1992 – that % increased to 80%
- 1995 – increase to 94%
Nike & Apple
Where do they meet?
Nike+ represents a series of devices which record several parameters for athletes. The runner/walker trains either with a GPS sportwatch or with a smartphone with the Nike+ App. Users can record training data onto the Nike+ site and enjoy the social component, as well.
Why do they work?
The partnership worked thanks to:
- Customers’ profile – determined, tech savvy, competitive runners
- The powerful social component
Results:
Nike’s 1st goal was to create a brand community to increase engagement. The actual results were:
- Increase of their online sport shoes sales
- Running a global community
GoPro & Red Bull
Where do they meet?
Both GoPro and Red Bull are lifestyle brands. The lifestyle they’re showcasing is active, adventurous and extreme. So, the brands met somewhere around extreme sports.
Why do they work?
GoPro comes with all the tools and equipment athletes need to video stunts, races or other events. Red Bull uses their resources to run and sponsor these events.
Results:
For the Parachute Jump event (EConsultancy):
- 900,000 Facebook interactions on jump day
- Red Bull sales rose 7% within six months
#NowYouKnow
Leveling with your customers is one of the today’s social trends. We’re getting closer to them by mimicking their lifestyle and identity. But first, brands need to showcase customer behavior. Co-Branding is one way to point to getting together.
Due to demographic changes, audiences and their necessities, are much more complex and demanding. They also pay more attention to how we handle their personal information. At the same time, we’re running out of resources. These are the main trends defining today’s picture and shaping our businesses.
Joint Marketing comes as a solution to all of them. It’s:
- A conversion driver
- Complementary
- Audience Broadening
- Perfectly Timed
Did you know that James Cameron had to wait 10 years to see Avatar coming to life as a 3D movie?
Do Intel Inside, Nike + or GoPro Red Bull ring a bell? They’re just a few of the most successful joint marketing campaigns in time.
In the end, tell us what you think about these co-branding efforts. Use the comment area below to tell us about your plans. Whom are you partnering with? We can’t wait to know all about it! *smile
