How to Create a Joint Venture Marketing Plan in 5 Steps

Joint venture marketing is an agreement between two companies in which both organizations combine marketing strategies in order to increase their market share and revenues. It allows two companies to combine their resources and marketing efforts in order to build sales revenue and increase brand awareness and equity. The concentration involves combining the marketing plan designed to help both companies reach their financial and marketing objectives.

To initiate a joint venture, both companies enter into a contract aka joint venture agreement that outlines the goals of the joint ventures as well as the roles and the responsibilities of each company. Additionally, key players of each company are identified to address who is in charge of what aspect of the agreement.?A Partnership Agreement is created and signed by both parties. At this point, each company is able to claim their share of the profits from the venture and both organizations share mutual control.

Why does joint venture marketing work?

A. Increase brand awareness.

B. Increase in customer loyalty.

C. Increase in sales and revenue.

D. Expansion for distribution channels

E. A temporary agreement that allows you to join forces with a company that has complimentary services and resources to benefit the other.

5 Steps to Create a Winning (JV) Joint Venture Marketing plan.

1.?Outline the core objective of the plan.

Think about what will be considered an ultimate success for each company. You must also know short- and long- term goals of the joint venture marketing plan so there is no confusion about performance and timelines.

2.?Identify and Research the Target Audience.

Learn everything there is to know about the people you will be targeting. What are their hopes, fear, needs, painpoints, and biggest challenges? Determine how your joint venture marketing can address any of these issues.

3.?Determine the Best Marketing Channels to Utilize.

Once you have identified and researched your target audience, the next thing to do is determining how to reach them. You must know the best marketing channels to use that will capture engagement from your audience in large numbers. Knowing the best online and offline channels to use to deliver your marketing messages will save you time, money, energy and effort.

4.?Create Compelling Content to Attract the Target Audience.

The language used in your marketing and advertising messages is essential to the success of your marketing outreach. If you are not using the language that speaks to your target audience and motivates them to take action, you will fail to get the results you desire. It is critical that you perfect the message so that it hits the proverbial nail on the head.

5.?Test, Track and Measure Each Marketing Campaign.

In order to succeed at any joint venture marketing plan, you must be able to analyze what worked well and what didn’t and why.

THERE IS A DOWNSIDE…BUT…the good outweighs the bad.

Joint venture marketing and joint venture partnerships has both advantages and disadvantages. Therefore, it is important to approach any joint venture opportunity as a business agreement that requires legal structure. In some cases, the parties in a strategic partnership can create a separate entity (or company) of which they share ownership. The new entity is called a joint-equity venture. Typically, each company determines the percentage of ownership they each will have, either 50/50 or some other arrangement. Signing an MOU, Memorandum of Understanding along with a joint venture agreement are the two legal documents that should be created in this scenario.

In summary, as you can see there are many reasons why it might make sense for you as a small business owner to enter into a joint venture partnership. The key is going into the agreement fully knowledgeable about what you hope to achieve in terms of the ultimate destination as well as the route you will take to get there.

Which of the 5 steps above resonates with you the most?

Leave a comment and share your thoughts below.

P.S. By all means if you need help with a winning marketing strategy for your small business, send me a message via LinkedIn. I'd love to hear from you.

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This article was written by?Dr. Lori A. Manns, President of Quality Media Consultant Group LLC. The original version of this article appears on the blog at www.qualitymediaconsultants.com.

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