Partnership Marketing: What is it Exactly?

Partnership Marketing: What is it Exactly?

The first thing that came to mind when I first heard the term was an old adage. “The enemy of my enemy is my friend.” When two companies that are remotely in the same field as one another, then the odds are they most likely compete with one another for the lion’s share of the profit.  However, not everything is about competition in marketing. If you think about it, if everything was in competition, we wouldn’t have a lot of the products or customization that were born out of cooperation in the first place.

So, what makes two or more companies cooperate in a partnership? What are some of the intricacies that are involved, and what makes them so successful?

partnership marketing

The Definition of Partnership Marketing

Partnership marketing, at least according to econsultancy.com, “…is meant to be a long-term coming together of two brands, whether it’s integrations, interesting sponsorships, innovative attractions, a series of marketing campaigns, or utilizing another brand as a reward mechanism.”

In plain English, that means that two companies join to create a series of marketing campaigns. Usually for the benefit of profit for both brands.

Why do Different Companies Partner Up?

The reason behind any partnership between two people or groups is the achievement of a common goal. However, these goals vary from company to company. In fact, it varies so much that people who have studied on the subject have found 10 reasons for partnership marketing.  These reasons are not rigid. In fact, it can often change according to market response.

 

This includes but does not limit to:

partnership marketing

  • Affiliation – “Affiliate marketing is a performance marketing technique where websites otherwise will promote your product or service in return for a monetary reward.” An example of this is youtube playing 10-second ads for another company’s product for some of the revenue.
  • Distribution – One partner agrees to attach a sample or giveaway of another company’s product for revenue. An example of this is a textbook company sending out a Starbucks instant coffee packet with book rentals.
  • Charitable – A primary brand sponsors or markets itself with a charitable organization or cause. Their primary motivation is publicity through those charity channels. An example of this would be a brand of dog food sponsoring an event for the ASPCA.
  • Joint Products –  “When two companies agree to create a new product or alter an existing product in order to provide additional value to the customer.” This is done to create something that would address multiple audiences. An example of this is a line of Star Wars makeup was advertised by Cover Girl.
  • Product Placement – This is the most common form of partnership marketing. This when the presence of a brand is made clear in any media channel. Examples of this are littered everywhere, but the biggest example that was the most blatant was the replacement of the famous dry martini in James Bond movies, for a Heinikin in 2012’s Skyfall.
  • Shared Stores – This is when two products that are often associated with one another share the same location. An example of this would be a coffee shop and a bookstore sharing the same building.

What Makes Successful Partnership Marketing?

There are brands who have succeeded in this tactic, and there are those who have failed altogether. And that makes sense, there is always a degree of risk that goes with a partnership involved with two businesses. So, if you are thinking about partnering your own company with another on a marketing campaign, you might want to consider these factors.

  • Is this Company Compatible with my Brand?

 When a group of people decides to work together, they almost always need to be on the same page.  That doesn’t mean agreeing on absolutely everything, but you at least need to share the same priorities, company values, aspirations and target audience.

  • Am I in it for the Long  Haul?

Marketing campaigns and promotions take a while to conceptualize, gather resources, and execute. What’s more, there is a certain level of transparency that is a requirement in this type of business partnership. If you think you are not comfortable with the possibility of months or years of coming up with a campaign with this other company, you might not be compatible with one another.

  • Are Both of your Brands Compatible?

People tend to like things that make sense in combination with one another. For instance, if you are an outdoor paint company, you might want to partner with someone in a related industry. A furniture company comes to mind. If you partner up that same paint company with a daycare, you are not going to get a lot of people to think about either business.

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By |2019-04-25T14:40:58-05:00April 25th, 2019|Post|Comments Off on Partnership Marketing: What is it Exactly?

Setting up an Ideal Digital Marketing Budget

Setting up an Ideal Digital Marketing Budget

Advertising plays a huge part of the American economy. As technology grows, along with the goods and services that come with it, so does the number of advertisements as well as marketing tactics. Digital marketing tactics have taken in the lions share of the advertising budget.   In fact, marketing is a growing service industry, based on the growing demand for advertising. In 2018, “digital ad spending has surpassed the $100 billion mark.” So, if anyone wants their business to grow, the business owner needs to invest in a proper marketing budget with digital marketing added in the mix. But how much are business owners are expected to spend on their marketing budget? Where should they allocate the funds, and how effective can a proper marketing budget be? Let’s investigate.digital marketing budget

What is an Average Digital Marketing Budget?

There is no specific cap on how much a company spends on advertising or marketing. It often relies on different variables such as the size of the company, how long it has been participating in the market place, its current financial situation, and the audience they are targeting.  There are also different methods that businesses can determine their marketing budget.

Percentage of Sales Model

One way to determine it is by allocating a specified percentage of sales revenue to the marketing budget. This is more popular with corporations and businesses who are firmly established, but the basic principle is easy to understand.

The CFO or Financial advisor for the company allocates a percentage of funds from last year’s profit back to the advertising budget.

Smaller businesses range often from 12%-20%. On average though, the allocation for larger businesses run from 9%-12%.

This is because larger company brands are often so well known, that they do not need to spend as much money on advertising.

If your company makes more money in sales, then more money is added to the budget by default of the percentage. This tactic is often utilized to prevent the depletion of the sales budget from unnessecarry spending.

Flat-Dollar Approach

If you are starting independently, or you just don’t want to deal with difficult math, then the dollar approach might be for you.

These dollar amounts come from the mindset of what a business can afford. This is good for one time expenses, or short term marketing plans.

Digital marketing, as a rule of thumb, shouldn’t cost as much as traditional avenues. However, it is not hard to spend a lot of money on paid advertising. The dollar amount will help you keep track and put a cap on what you are willing to pay.

Matching Competition

This method of creating a marketing budget based on the business plan of a competitor. While it is useful for comparison, it is often a terrible idea when scale is not taken into account.

For instance, if a small store tried to compete with Walmart’s advertising budget, they will go bankrupt quickly. You need to not just look at what your competition is spending, but how it is being used.  Check for effectiveness more than dollar signs.

If you want the right amount of bang for your digital marketing buck, you want to invest in these three things:

 

Where Should the Money Go in a Digital Marketing Budget?

digital marketing sales chart

Content Marketing: I have seen it time and again. A website that makes no content for their audience is going to be virtually ignored by everyone and Google. If you want to be seen on the first page of any search engine, you want to at least invest in giving people a reason to view and enjoy your website.

If you don’t think you can blog yourself, you can always hire a blogger to do the writing for you.

Social Media and Influencers:  I am not talking exactly about Facebook Ads. Just like content marketing, people want a reason to see a social media account. They want to fall in love with a personality, not be sold a product by a complete stranger. The more open you are about your business on social media, the more likely you will get a lot of engagement. Especially from future customers. Invest in Facebook, Instagram, or any other social media brand that you think your business can benefit from. If you want to do it yourself, that’s great! If you don’t, you can hire other influencers that might like your brand.

Tracking: If you know what works, and what doesn’t, you are more likely able to gain and keep more customers. And the best way to do that is to keep track. If you keep track, you can know what was most effective, and when to stop or keep promoting a product or an event.

If you want to know about this and more, contact us or visit our site @ www.purpletieguys.com

By |2019-04-16T15:21:47-05:00April 16th, 2019|Post|Comments Off on Setting up an Ideal Digital Marketing Budget

Why Do Some Local Businesses Hate Digital Marketing in Huntsville, Al?

Why Do Some Local Businesses Hate Digital Marketing in Huntsville, Al?

Have you ever tried to convince someone to see your point of view about a subject? Maybe you found yourself in a position of convincing someone to buy a product or a service. It certainly isn’t an easy prospect. It is doubly hard when a person or a group of people have a preconceived notion based on a reputation behind your product or service. Sometimes that reputation is a deserved one from previously poor business practice. Other times, potential clients might have been burned by other people in your profession some time ago. Nevertheless, you find yourself in an uphill battle trying to change their negative perception of you. Digital marketing in Huntsville, Al, while new and exciting to larger businesses, is skeptically perceived by the local business sphere. Especially if they have been established for a long time.

Why? What is it about digital marketing, or any form of new marketing, that sounds threatening or disadvantageous? In order to crack the mystery, we need to look into the mindset of these people who perceive digital marketing as a threat.

 

The Perceived Threats Behind Change

According to The State Of Local Marketing Report 2019, a study by BrandMuscle, “A disappointing 11% of local retail partners “aren’t interested in marketing and don’t make it a priority,” What’s more, few partners rank very high on the marketing maturity scale. Of those polled, 47% are disengaged, 42% are developing, 8% are equipped, 2% are executing and 1% are optimizing.”That is a little less than half of the local business sphere. What gives? Why do a lot of businesses not feel the need to engage in a form of advertising that is cheap, fair, and gets results?

Some of it has to do with a very fundamental human fear. The fear of sudden change.

technophobia, digital marketing in huntsville, alabama

Loss of Familiarity

Whether people realize it or not, we are creatures of habit. We like the familiar because we find it comforting, safe, and keeps us in control. While we do crave a variety of things once in a while, the basic standard for human behavior is to crave the familiar. According to Psychology Today, “Generally speaking, things that are familiar are likely to be safer than things that are not. If something is familiar, we have clearly survived exposure to it, and our brain, recognizing this, steers us towards it.”

Loss of Personal Pride

Another reason that might make local companies hesitant about addressing digital marketing in Huntsville, AL is personal pride. This is the sort of thing that we are all guilty of from time to time. If we already feel like we are handling our own business, we are less likely to want others to interfere. Because someone from the outside is urging a change in business habits, they are, in the minds of the business owner, discrediting their past accomplishments. “When change involves a big shift of strategic direction, the people responsible for the previous direction dread the perception that they must have been wrong.” Explains Harvard Business Review “Change is resisted when it makes people feel stupid … [People] might express skepticism about whether the new software version will work or whether digital journalism is really an improvement, but down deep they are worried that their skills will be obsolete. ”

Increase of Perceived Challenges and Threats

Change is not easy. It is an uncomfortable process that requires a lot of excess work and mitigated risk-taking. “Change is resisted because it hurts. When new technologies displace old ones, jobs can be lost; prices could be cut; investments could be wiped out. ” This puts people into a very uncomfortable situation. Especially when digital marketers introduce new technology to a client. This is where the utmost patience is required from people pitching digital marketing in Huntsville, Al.  That combined with complete transparency is crucial if you want people to get on board.

 

The Negative Reputation of Marketers

Another reason that local businesses are more hesitant to embrace the concept of digital marketing in Huntsville, AL, is the stereotype surrounding marketers and advertisers. It is not easy to get people to buy your line of work as a necessity when the people you are trying to convince thinks you are the devil incarnate.  This obstacle is a byproduct of several things all of which winds up hurting business owners, target audiences, and marketers alike.

 Abuse of Outbound Marketingpyramid scheme, digital marketing in Huntsville, AL

As someone who receives at least 7 or so bot calls a day, I absolutely understand why people hate it so much. It offers little to nothing for the client, it is an invasion of privacy, and it distracts you from the rest of your day. Outbound marketing is a marketing technique in which a company advertises to everyone under the sun. This includes cold calling, trade shows, email blasts, and purchase lists. Companies, advertisers, con artists, political campaigns, robots, and all sorts of other groups invasively interrupt thousands of people just to get maybe one or two solid leads, and even then, it isn’t a guarantee that it will work.  Thanks, but no thanks.

Abuse of the Term Marketing

If you were to ask any layman about the definition of marketing, you will get varied responses. There are a few older generations that think of door to door salesmen. Others think of telemarketers right off the bat. Then there is the Mary Kay and Lu-La Roe companies that do famous Multi-level-Marketing or (MLM) schemes. For stores, it is setting up a table or window display.  Usually, though, people think of salesmen who are slick, dishonest and are certainly willing to con a dollar or two off of friends, family, and complete strangers.

This is because both laymen and salesmen, marketing has become a catch-all term to mean sales. This is thanks to the need for shady businesses on both a corporate and local level to clean up language for their personal benefit. A “pyramid scheme” for example becomes “multi-level marketing” because it disassociates itself from a terrible business practice through rebranding.

 

Conclusion – Con Artists and Personal Insecurities are Getting in Our Way

This is what makes the job harder than usual. Convincing someone to embrace something new is difficult, sure. However, combining that hesitancy with our reputation smeared by con artists, and you get a cocktail of difficulty.  There is something we can do, however, to change the mindsets of local businesses in regards to the presence of digital marketing in Huntsville, AL. We will cover it soon. If you like this and you want to know more about our company you can check out our site: https://www.purpletieguys.com

By |2019-04-03T15:50:37-05:00April 3rd, 2019|Post, SEO|Comments Off on Why Do Some Local Businesses Hate Digital Marketing in Huntsville, Al?