Consumers are confronted with an information overload due to the range and variety of products and services presented to them on every turn.
As a result, users increasingly developed perceptual barriers against brand communication with many consumers developing internal resistance to advertising and marketing.
To increase responses to advertising and marketers, campaigners must develop new concepts and ventures to overcome these cognitive barriers and make the consumer curious again.
Co-marketing arrangements present a wealth of opportunities to expand on promotional offerings. They allow brands to expand distribution and revenue while leveraging another’s strengths, all while providing a better offering to users.
But at a certain point, a longer term initiative presents itself – the joint venture.
Joint ventures offer many advantages to traditional co-marketing arrangements.
Joint Venture (JV) marketing’s aim is to provide the consumer with credible and authentic reasons to engage with brands once again.
A joint venture is a form of partnership (not necessarily in the legal sense) where two or more parties agree to undertake a business, or to operate a product or service, or in the co-marketing sense, to co-market their respective products and services. A joint venture can be documented by virtue of an agreement between parties, a more formal formation of a partnership or the formation of a limited liability company or other entity the parties determine to use to undertake the business, or to operate or co-market one or more products or services.
JV marketing campaigns allow companies to link their brands in mutually beneficial (win-win) relationships. When one company join with another to provide goods in exchange for access to a new market, both parties benefit.
These benefits could include:
- New clients and referrals
- New brand ambassadors
- Mutually beneficial marketing relationships
- Endorsements from other associations
- Group marketing effort to individual niches
- Cross-selling and up-selling products and services
There can be many parties involved in a JV marketing campaign developed by RD:
The venture (specialised experience campaign branded name), and the businesses (brands) providing the campaign with products or services to bring about a certain experience to the participants (consumers).
Businesses who partner with the specific campaign differ in size, scope, and products offered, but they come together to deliver one coherent message within a bigger theme.
Organisations are partnered with other companies with the same:
- Outlook, vision, mission, reputation and image
- Pursued social interests or leisure activities (eg sports)
- Consumer behaviour and demographic characteristics
- Ideologies, values, cultures or creeds
The greatest strength of an JV marketing campaign is how customisable and scalable it can be, as there are quite a number of other target markets for companies to introduce themselves to, and with the right campaign, these strategies are powerful and hugely successful.