In the sea of business communities, finding someone to pool resources with can work out to your advantage. Joint venture marketing is the coming together of two separate business entities to work for a common goal and strategy. The relationship is symbiotic in many instances. You can find small unknown companies entering into a contractual agreement with a well-known established multinational. You may be left in absolute wonderment trying to reconcile the move. Some multinationals have climbed the ladder of success in production, sales and are at the top. They may have tried many other options yet still cannot increase profits. A small unknown company may have two or three entrepreneurs who have ideas but little capital for implementation. This may be a great asset to invest in for the multinational, if they can see a potential multi-million dollar profit flow.
Building loyalty to the brand
A joint venture with an established company will lead to the introduction of a new brand into the market. There is already an established customer base with loyal users of the established product or service. The affiliation will lead to more consumers trying out the brand. It is easier to convert the customers to loyal users. The two companies benefit from each other as they grow market share and profits. A joint venture can last a long time if the two companies have a well-defined agreement which is legally binding. As the small establishment grows within the joint venture, it is important that all its interests are protected.
Embracing modern technology
A joint venture is often the road to advanced technology for the smaller of the partner companies. Most small business enterprises operate using traditional methods in all their operations. A joint venture offers access to already established infrastructure in communication, transport and information. The larger company already has licenses for export and has the right contacts for shipping goods. This comes in handy for use when an online outlet is opened by the growing company. A growing company has a lot of activity going on such as creating marketing tools in the form of advertisements, videos and audio, downloads, marketing phrases and many other digital assets. The need to manage and protect these fundamental assets and avoid internal or external theft of them is of paramount importance.
Joint venture marketing has been very successful for many that have ventured into it with a set timeline. The initial period can be easily extended if both parties feel they still need each other and can benefit further from the partnership. Medium sized business enterprises can benefit from joint venture marketing and record considerable growth. It is advisable to have renewable agreements as market trends keeps on changing which may lead to the joint venture becoming unprofitable at some point. Joint venture can bring together two or more companies at one point in time to fulfill a need then separate after the contract lapses. It is advisable to differentiate your digital assets by having an outsourced manager to copyright and watermark as well as monitor and store your assets.
Abbie is the CEO of a renowned Digital Asset Management consulting firm serving over 50 multinationals worldwide. She is the chief advisor for SME on Digital Rights Management by WEBDAM.