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The Players in a Joint Venture Marketing Team

August 18, 2011 by · Comments Off 

The amount of people who will participate in a joint venture project depends on both the size of the companies and the size of the project that is being attempted. For two very small businesses it might be as simple as two company owners meeting together to discuss their plans. Usually, however, the team structure is more complex.

The governing body

It is common practice for both companies to have an equal number of representatives participating on the project. This way neither company feels as though it’s at a disadvantage. This governing body will protect the interests of all involved in the project. While they will have loyalties to their own company, their primary goal is to see that the project is completed fairly and successfully. The greater the size of the company, the larger the team can be. It is important that there are enough people who are part of the governing body to get the project done according to the projected time line, but it’s also important that the companies do not pull too many people away from their regular responsibilities. While the joint venture marketing project is important, it’s also important that the rest of the business continues to function effectively. It is not uncommon for companies to hire new people just to make sure that the business does not suffer.

The management team

It is also customary for there to be a management team. These people will be given the task of overseeing individual aspects of the project. Dividing the work load up allows for more personal attention to be paid to every aspect. These people are often supervisors or managers from their respective companies. They work hand-in-hand with the governing body; overseeing tasks that have been divided up and assigned for completion. It’s important that the company be able to keep the people in their group on task at all times while being able to add creative insight to the project. Oftentimes their jobs are more difficult because in addition to being part of the management team for the project, they are also still required to effectively do their job as supervisor or manager for the rest of the business.

The financial team

There is usually a financial team as well. As the investment of most joint venture marketing projects can be quite high, the job of the financial team is to keep all of the finances in order and try to keep the cost of the project within the projected budget. They research the best deals on anything that needs to be purchased and calculate the projected revenue for each aspect of the project. The more ways they can find to make and save money, the more successful the project will be. They also have the task of making sure the cost of the project is divided up between the two companies in the way initially agreed upon. Because of this it is very important that there are an equal number of people from both companies represented on the financial team. Neither company wants to feel that it is at a financial disadvantage for any reason.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Effectively Negotiating a Joint Venture Marketing Agreement

August 8, 2011 by · Comments Off 

After you’ve decided to enter into a joint venture and found a potential partner, the next step is the negotiation. “Give and take” is important to understand in the negotiation process; without it a successful agreement cannot be made. The power of a joint venture is only as strong as the negotiation behind it.

Tips for Effective Negotiations

Face-to-face interaction and tactics are key factors in a successful negotiation. Equally important is the proper layout and preparation of goals, benefits and risks of the venture. Keep in mind that in any successful negotiation, both parties walk away feeling they will benefit from the arrangement.

Perform extensive research on the type of business you’re preparing to negotiate with. If possible find out what problems they have and what their profit margins and resources are. Use the Internet as a research tool, read industry publications and talk to the company’s customers or employees. This research will help you be more effective in the negotiation process.

Learning everything you can about your potential partner is important, but being prepared to offer important information about your business is also important. Outlining the benefits of entering into a venture with your company for your potential partner as well as discussing what you hope to gain from the venture is a good strategy for negotiations.

Speaking of “give and take,” you should go into the negotiation process prepared to compromise. You should have the best- and worst-case scenarios along with the benefits of each case. As you begin the process, start off with the best outcome you hope for first. As the negotiation process matures, prepare to compromise, but do not lower your standards.

By leveraging existing resources instead of creating new ones, this will help both parties keep costs down as much as possible. If the venture does not work out as planned, both partners will not lose if they use their combined resources. Also pooling your resources can be an effective way to deal with each other’s shortcomings; what one company lacks the other company excels in.

Some other helpful tips are honesty and transparency between partners. Starting your venture on the right foot will ensure the longevity of the partnership. Regular contact with your partner is essential in making sure your current arrangement is going as planned and making adjustments as needed. Effective ventures are essential in business growth, profit increase and growing the customer base.

Put it in Writing

All successful negotiations end in writing a contract. The contract needs to include the overall goal for the joint venture, a timeline for the venture and the benefits each partner hopes to gain from the agreement. If a timeline is not solid, put a date down to revisit the JV partnership. Also include all fallback options. In the event the partnership does not work, both parties can make a clean break. A well-prepared contract is paramount. Each party should think about hiring a legal representative to help protect you and your potential partner’s interests.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Defining the Relationship in a Joint Venture Marketing Plan

August 3, 2011 by · Comments Off 

Business is all about developing relationships and forming partnerships to get your business off the ground. A poorly planned joint venture is destined to fail from the very start. One way to ensure this doesn’t happen is to create a joint venture agreement that is aligned with the goals of your JV.

Reciprocal

Reciprocity is very simple. If you’re good to your partner and create revenue for them, they’ll want to reciprocate. The referral mechanism for a reciprocal agreement could be as easy as displaying your partner’s business cards or adding its logo to your marketing materials. You are basically saying you give your partner’s company your stamp of approval. Think about how your pediatrician can recommend a good nutritionist for your kids, or how many Wal-Mart locations have a McDonald’s inside the store; this is reciprocity at work.

In mid-July, American Airlines, British Airways and Iberia were finally able to announce their joint venture. The European Commission had approved their partnership which allowed them to expand their code sharing. The companies were able to sell their partners’ flights under their own name and flight number. This venture gives American Airlines more cities to sell flights to and from Europe.  British Airways and Iberia would be able to use American Airlines extensive network in Canada, Mexico, the United States and South America. This is an example of a multi-national company successfully designing a reciprocal relationship that should fit the needs of both organizations. However, small local companies can do the same.

Profit Sharing

Profit sharing also means risk sharing. When you decide to choose a profit sharing joint venture, you’re also agreeing to share half the risk and half the potential losses. To avoid confusion the contract must clearly state that both companies are equal partners. All profits, risks and loses are shared equally between you and your joint venture partners.

Delta Airlines and Air France/KLM put together a $12 million per year profit-sharing venture which would allow the companies to become a single carrier on North Atlantic routes. This offer also extends to a previous venture between Northwest and KLM which has been in place since 1997. This is the most advanced model of successful international of airline cooperation. The benefit to customers and the businesses are paramount. Where can you form a joint venture marketing agreement with a local partner that will answer the needs of your customers?

The Best of Both Worlds

Recently SkyWest and Virgin Blue Group signed a 10-year joint venture agreement which will provide Australia with up to 18 Virgin Blue-branded aircraft. This venture makes it possible for SkyWest and Virgin Blue to operate at a number of existing and new destinations in Australia.

If both reciprocal and profit-sharing agreements seem like a good option for your business, you’re in luck because a joint venture marketing agreement is completely customizable. All you have to do is put what you want in writing to be presented to your potential partner at negotiations. You may have to make some compromises, but that’s the case in most business partnerships.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Reinventing Your Company Through Joint Venture Marketing

July 28, 2011 by · Comments Off 

In a marketplace where being noticed is an extremely difficult feat, many small companies are joining forces to create better products to get ahead of the competition. An example of this is Sony-Ericsson, a joint venture between the Japanese-owned electronics company, Sony, and the Swedish-based telecommunications company, Ericsson, which makes mobile phones. Each company agreed to stop making its own separate brand of phone in order to combine Sony’s electronics knowledge with Ericsson’s technological advances in communications to produce a better quality of phone.

Finding the Right Partner

In order for joint venture marketing between two companies to be effective, both companies need to have the same goals for the venture. Before entering into a JV partnership, do the proper research on the potential partner. Make sure they can offer your company what you’re looking for from a joint venture. By joining hands with a larger, non-competitive business partner, the larger business can offer the smaller business highly valuable assets and a more extensive consumer base potentially interested in your products or services. Small businesses can save thousands of dollars in marketing expenses but still reach their targeted audience. Identifying non-competing companies that serve a consumer base similar to yours is essential.

Surpass the Competition

Developing a product or having a product for your new joint venture that stands out among your competitors will be crucial to the success of your alliance. Pooling your research and development efforts with your partners to make sure your product can compete with your competition is a good place to start. Use all available resources to make your product marketable to the targeted audience. This will only increase profit margins and make your product or service stand out from the pack.

Cutting Costs

A small business wanting to get noticed in a huge marketplace can be expensive. When small businesses partner up in a joint venture the costs are cut in half, which means more profit for the companies because they are not shouldering the entire cost of marketing, research and development.

New Company

By using all the resources available to your company in a joint venture, your business and your JV partner may decide to form a new company. Many of the companies we know today were once joint ventures between two companies trying to get ahead of their competitors. Cell phone provider Cingular was a joint venture between SBC and BellSouth. SBC bought AT&T, renaming itself AT&T, and then bought BellSouth, Cingular is now AT&T Wireless.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

5 Reasons Joint Ventures are Popular

December 22, 2010 by · Comments Off 

When it comes to enticing new customers and building a solid professional reputation, joint ventures can’t be beat. These business arrangements cater to a targeted market that you and a related business share. By pooling your knowledge and resources, you can make greater use of your marketing budget for a higher return on your money.

These ventures have become a popular way for small business owners to expand their companies without a great amount of cost or effort required up front. We have five reasons joint ventures have become one of the most popular methods for marketing businesses today.

Building on Another

When you cozy up with a more established business, you instantly benefit from their expertise, experience and reputation. There is simply no other way to build your own name as quickly. Joint ventures are the perfect method for gaining customer confidence without building a relationship first.

Good Value

Joint ventures are one of the most cost-effective ways for boosting your bottom line. They don’t have to cost a lot up front, but they can reap big returns rather quickly. In any business owner’s book, low cost and big benefits mean great value.

Sharing Resources

When you partner with another business, you share marketing resources for the common good. This means splitting advertising costs and utilizing the best talents from each staff member. When you share your marketing resources, you get a better return for half the investment you would normally have to put in to make the marketing strategy work for you.

Targeting Customers

Joint ventures are all about reaching a targeted base of customers for a better return on your advertising dollar. Instead of wasting money sending fliers or using other marketing tools to enlighten the general public, you are going straight to the potential customers that are most likely to buy from you. That ensures the return on your money is much higher for a better value overall.

You reap the bigger return without investing a fortune in market research or customer surveys. Instead, you simply find a related business in your industry, and your target audience is within your reach easily and quickly.

It Works!

The bottom line as to why joint ventures are so popular is just that – the bottom line. Business owners like joint ventures for one primary reason – they work and they work well when they are used properly. Past history shows that business owners that enter into JV agreements are much more likely to boost their customer base and their sales quickly and effectively. You just can’t argue with that kind of track record.

There are many reasons why they have become one of the most popular marketing tools today. These agreements offer many intangibles, such as a quick path to a positive reputation and consumer confidence, as well as concrete marketing strategies that make it easier for you to expand your market base and increase sales. Joint ventures are the perfect source for business owners who want to expand without breaking the bank to meet their goals.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

4 Secret Strategies of a Successful Joint Venture

September 8, 2009 by · Comments Off 

Entrepreneurs are known for being creative. They have a knack for observing a particular market or niche and developing a product or service that fits that niche. Clever entrepreneurs are also clever marketers. And one great way to expand your market and increase profits is by forming a joint venture.

But should an entrepreneur or small business owner form a JV simply because they can? Not always. A successful joint venture requires careful planning and consideration. It may even require special research or resources for producing and packaging a successful joint product.

A JV should be approached with the same respect as any other business strategy. There are four important strategic points that any entrepreneur or business owner should consider before partnering up.

1. Set Your Own Clear Goals

Though a JV does require joint strategies between two people, your own goals are important for it’s ultimate success. What do you want to accomplish? Do you want more profits? Expanded markets? More credibility and better reputation from an association with a prominent joint venture partner? Make sure you know what you want before you agree sign on with a new partner.

2. Find a Complementary Partner

Knowing what you want from the joint venture will help you find a complementary partner. Keep in mind that a JV doesn’t have to be between two similar sized businesses in the same industry. You may be a small business owner and form a successful partnership with a larger corporation, as long as you have complementary goals. And don’t think because you offer a service, say, financial advisement, that you could not form a creative and successful arrangement with another business owner who manufactures fishing tackle. Having a win-win strategy, regardless of the industry or business size, is the most important thing to keep in mind when looking for a potential JV partner.

3. Carefully Plan The JV

The success of your JV depends upon the careful planning that you and your partner perform in the very beginning. You will need to negotiate your plan together to reach a mutually beneficial agreement. You and your new partner will need to agree upon a legal business type for your venture, as well as the overall JV goals and the tactics you will need to reach those goals.

4. Nurture the JV Relationship

Remember that a JV is not just a business venture; it’s also a relationship. You’ll want to continually nurture the relationship with effective communication and cooperation. And don’t forget to reward yourselves for achieving goals. A good JV relationship will make the road much easier to travel, and keep the venture going for a long and successful run.

Discover your potential joint venture. Get your personal business goals in place and find a good partner with whom you can work well. Keep these strategies in mind before you form your JV, and you’ll have a much easier time getting a successful JV assembled.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

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