subject: Warning - Do Not Ignore Joint Venture Marketing [print this page] Joint venture marketing happens when two companies or parties decide to work together in doing their marketing campaigns and public relations. Usually, it benefits both parties and the products or services are often complementary in nature.
Businesses turn to joint venture marketing because of the benefits it give compared to other marketing approaches. Among the benefits belongs to categories of business relationships, finance, customer satisfaction, and cost reduction. In joint venture marketing, a business can have long lasting business relationships to its partner since they work together to promote each of their products. For finance, both businesses can increase cash flow, find new profit outlets, and can get rid of extra inventory. It can also reduce costs by spending less on the advertisements and promotions since you can save money on operating costs too.
To be able to determine whether a JV will help the business better, it is significant to consider some factors. These factors are target market, intensity of competition, costs, availability of human resources, knowledge, resources, and regulations. Also, the goals that need to be achieved must also be defined first. The goals can be increase profits, reduce costs spent on marketing, improve distribution channels, reduce competition, and extend market reach. Further, the most critical that must be taken into consideration is the amount of risk that joint venture marketing will bring to the company. On the contrary, the company may be facing a high risk at the present and it may be probable that joint venture marketing will help reduce that risk
