Bigger Marketing Bang for smaller Marketing Bucks

As I sat in a restaurant during a recent ISS show, I thought to myself, “Now I’ve seen it all.”  I don’t mind advertising on the ceiling tiles at my local bar…or even the occasional wall billboard in the men’s room…but business advertising among the entrees in an upscale restaurant menu seemed a bit much.  The more I thought about this marketing approach, I was impressed at the business savvy of the restaurant owners.  Here was a businessperson who produced a high-end menu for his customers…at no cost.  When the waiters’ apron had the name of their screen printer as well as the restaurant name and the dinner check came in a leatherette folder with an American Express^Ò logo on the cover…I knew the owners understood co-promotion partnering.

What this restaurant owner did to reduce his costs of doing business…you can too with your promotional marketing.  Promotional marketing is all about attracting interest in and awareness of your business by potential customers.  Marketing your business can be expensive and time consuming…particularly since marketing results can be more delayed than “sales” efforts.  Partnering with others who share common goals and target audiences can save you money and bring unexpected positive results.

Co-promotion partnering involves marketers with similar goals and/or client demographics combining resources to maximize results while minimizing expenses.  In many ways it is an extension of barter relationships where goods and services are traded directly for each other without the intermediary of money.  This doesn’t mean partnering doesn’t have costs, but one of the underlying principles of partnering is reduction of costs and risks.   Another key to understanding partnering is to realize that the initiator of co-promotion activity generally gets to choose the goals and the players involved.

Co-promotion marketing is a lot like puzzle building.  First you need to see the big “picture on the box” i.e.…what is your goal or where do you want to go with partnering?  If you are building your business and name recognition, you may want your logo in front of the public as much as possible with little cost to you.  If you are targeting decision makers in corporate America…you may want to consider partnering with a golf event or a business with a similar target audience.  Perhaps you want to be known as a business that gives something back to your community…there are plenty of opportunities for partnering with not-for-profit organizations as well.

Once you determine your goals, consider what you need to make your pictured future a reality…i.e., what do the puzzle pieces look like, and how many pieces are needed to make the whole picture.  Then think about who the “stakeholders” are in the promotion or event you are considering.  Potential stakeholders are the organizations and/or individuals who could potentially benefit in some way from what you are trying to do.

What you are really proposing with co-promotion partnering is a win/win version of “this is what I have that I would give up to get this other thing.”  So think about the value the stakeholders can get from participating in the promotion or event…and what they can contribute in product and/or service in order for them to get that value.  In other words…it’s back to Sales 101, of identifying the costs, features and benefits, then presenting them to your target audience (in this case your potential partners).

You also want to consider possible objections and understand each stakeholder’s unique position, which would allow them to give you what you want.  One of the ways you can benefit most from partnering is through perceived 3^rd party endorsements of the other partner.  When you choose a marketing partner who is more established or more visible than you are…it’s like hitching your wagon to a rising star.

So…who can you partner with…and how do you do it?  Virtually every business activity you do has the potential for co-promotion marketing partnerships.  Let’s look at your clients, vendors, non-profits, and other local businesses for some examples in successful partnering.

Partnering with Clients

A promotional products distributor in New England wanted to increase their logo and name exposure to mid-level managers and decision makers in their community.  One of their accounts was the largest health and fitness club in the area.  One day while delivering an order, a salesperson noticed that many of the people going in and out of the club were professionals between the ages of 25-50.  Soon after this, the salesperson was finalizing an order with the club and the club manager pressed for a more significant discount on the merchandise.

Recognizing this scenario as a potential way to partner with this 4,000-member club, the promotional products person suggested the two businesses enter into a marketing partnership whereby his company would be more secure as the vendor of choice…and the club would receive their desired price reductions.  The two businesses negotiated a written two-year contract for co-operation that has now been in force for five years.  The agreement calls for a discount whenever the club includes the distributors logo with the club logo on merchandise, and a lesser discount when the club logo is used in isolation.  The agreement also includes the presence of the distributors mascot at club open houses and other functions.

This agreement has resulted in a quadrupling of the business volume between the two companies.  In addition, the distributors name and logo have been present in places they could not have afforded to market on their own…statewide fairs, radio, television ads by the club, etc.  It has also resulted in the distributor being recognized on event shirts and other items as a co-sponsor of statewide tennis and racquetball championships.  This marketing exposure was instrumental to the distributor becoming a known brand locally in a shorter than expected time…and led to numerous direct orders from members of the club who had seen the name and logo.

Vendors

Depending on your business volume and the vendors you buy from…you may be able to partner successfully with suppliers who are trying to reach the same audience that you are with their product line.  We’ve all seen this type of partnering at the ISS shows where Hanes^Ò or other manufacturers give wholesalers co-op support to market their new products to buyers of blank goods.  Many promotional products distributors have similar relationships with industry suppliers who participate directly in end-user trade shows and other marketing efforts.  This partnering takes as many different forms as there are potential partners…the important thing to remember is to think in terms of exchange theory…or what can my partner give me that has value to me…in exchange for what I have of value to them.

A friend of ours who sells promotional products has practiced co-promotion partnering at a business-to-business tradeshow the past four years.  The distributor rents booth space and invites their preferred vendors to partner with them.  By setting a minimum participation level of $1500 in value, the distributor only partners with those manufacturers who stand to gain significant sales volume from the distributors local market by being involved.  The “participation” may be in the form of paying part of the booth rental fee, distributor self-promotion flyers and merchandise handouts, unique special offers to entice new business, and/or participation in pre-show promotion activities.  Previous partners have included 3M^Ò, BIC^Ò, a multi-line representative with several product lines, and another nationally known supplier of promotional products.

The local businessperson gains the affiliation with brand names known to their end users…to help draw traffic to their booth.  This association creates the perception of a 3^rd party endorsement of the national brand endorsing the local business through their willingness to partner.  This association increases the goodwill and perceived value of the smaller partner.  The nationally known brands benefit from increased sales through the distributor to their end users.  One manufacturer saw their sales to the distributor go from $2500 per year to over $25,000 a year for providing self-promotion samples and catalogs.  The relationship was even more beneficial the following year, when the distributor included a free full page ad in their custom end-user catalog.

Business-to-Business

A screen-printing friend of ours recently found co-promotion partnering to be the key for significant community exposure at little cost.  The screen printer had recently moved into a new facility and wanted to hold an open house for their customers and other local business people.  The cost of such an open house can easily get out of hand…but not for this printer.

The screen printer contacted their local chamber of commerce and offered to host their monthly “business after-hours” networking meeting.  The printer then contacted businesses in their community and offered them “co-sponsorships” of the event in exchange for free or greatly reduced costs on their goods or services.   A local caterer provided the food and beverage at their cost.  The local commercial printer printed invitations and special flyers with attractive special offers from the screen printer, themselves and the other co-sponsors.  A local florist provided flowers and other decorations at no cost in exchange for logo inclusion.  A DJ service provided the entertainment in exchange for 36 printed t-shirts.  Co-sponsors were listed on the invitation, announced during the event, and allowed to distribute their own marketing materials.

Attendance was very high for this event and the screen printer was perceived as a great host and desirable business partner.  Since perception is reality for the perceiver, the printers guests believe he had invested more in producing the event than he had.  The printer enjoyed tremendous, long-term goodwill and a corresponding increase in sales from the event.

What about the other partners for the event?  The local chamber was perceived as providing service to their members, the co-sponsoring businesses solidified their status with the screen printer who was a customer of theirs and they netted new business by being co-promoted at the event.  Finally, the end user benefited through free food, special offers and an event t-shirt…containing logos of all participating businesses…and featuring the screen printer.

Partnering with Non-profits

One of the easiest ways to get your name and logo in front of more people quickly is through partnering with non-profit organizations.  Special event marketing, co-sponsoring of clothing items and other low cost opportunities can gain logo exposure and name recognition in your local community and on the national stage.  You’ll want to look for win/win partnering opportunities and partners who truly understand that the relationship is a two-way street.  For more information on partnering with non-profits, see the two-part article “Win/Win Partnering with Not-for-Profit Organizations” in the October and November, 2000 issues of IMPRESSIONS.

Food for Thought

When I want pasta I don’t want to wade through advertising about pillows and shoes to find the linguini.     Menu advertising with ads intermingled with menu items is pushing the envelope of consumer acceptance a bit far…in my opinion.  I have seen many successful attempts with diner placemats and even menus.  The point here is that you want to be sure that your marketing is in good taste and represents your business the way you want to be shown.  There are many viable opportunities available to you in everyday business life.

Co-promotion partnering with clients, vendors, other local businesses and not-for-profits offer a wide array of marketing options.  Formalized barter organizations and strategic partnerships with other marketing and communications companies offer further ways to increase your profits and marketing exposure.  We’ll discuss barter organizations and strategic partnering to increase your product offering while maintaining your reputation in future articles.