partnership marketing
DESCRIPTION
Partnership Marketing. The DMA Insert Media Council 2 nd Annual Insert Media Day Rye, NY September 9, 2004. Panelists introduction here. Jill Eastman Vidal, Director, Third Party Marketing, 1-800-Flowers.com, Inc. Milton Pappas, Vice President, Partnership Marketing, Redcats USA - PowerPoint PPT PresentationTRANSCRIPT
![Page 1: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/1.jpg)
Partnership Marketing
The DMA Insert Media Council
2nd Annual Insert Media DayRye, NY
September 9, 2004
![Page 2: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/2.jpg)
Panelists introduction here
Jill Eastman Vidal, – Director, Third Party Marketing, 1-800-Flowers.com, Inc.
Milton Pappas, – Vice President, Partnership Marketing, Redcats USA
Alissa Pomerantz, – Assistant Director, Partnership Marketing, Bookspan
Joe Seta, – President, Seta Corporation
Thomas Shipley, – President, BrandSeed
![Page 3: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/3.jpg)
What defines 3rd Party Marketing (a.k.a. Syndication)
A quick definition:
– Syndication is the practice of endorsing another company’s offer (of goods or services), allowing that offer to be marketed into your file and generating a commission on the sale.
![Page 4: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/4.jpg)
Why?
Open up/test new product categories without marketing and inventory risks
Extend your brand beyond your core product line to your customer base
Monetize marketing and distribution channels Generate incremental income – all to the
bottom line!
![Page 5: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/5.jpg)
How to get started!
Define Marketing Strategy– Who is your customer?
Identify important customer demographics
– What offerings might be of interest to your customer?
– Does product relevance matter?
![Page 6: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/6.jpg)
Marketing Strategy
Customer Research Attitudinal and Usage Studies
– Qualitative and Quantitative Analysis
Surveying– Online and telephonic customer engagement
![Page 7: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/7.jpg)
Marketing Strategy
Category Analysis of Potential Partners
Determine what companies you want to work with – the Proactive Approach!
– Identification of similar customer demographics
– How close to your product category are you willing to be?
![Page 8: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/8.jpg)
Marketing Strategy
What channels will you put to work for you and your partners?
– Traditional real estate includes: Direct Marketing Solo Mailings Catalog Marketing Package Inserts Blow-In/Bind-In Credit Card Statements and Statement Messaging Order Confirmation Page Programs Order Confirmation Email communications Upselling (both phone and web)
![Page 9: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/9.jpg)
Putting your strategy into action!
Deal Negotiations– Understanding the types of deals you can create
by channel and all related components Name Ownership Merge/Purge Priority ALL real costs – especially with Insert Media
– Blow-In/Bind-In costs– Package Insert collation/freight
![Page 10: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/10.jpg)
Structuring your deals…
Compensation Structures – Case Studies Revenue Share Upfront Bounty (CPA) Hybrid Arrangement Straight CPM Customized/Wholesale Deal Exchange of Space or Impressions
![Page 11: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/11.jpg)
Sample Insert Media P&L
3rd Party Insert: XYZ Blow-InCirculation: 1,000,000
Income:Average Order Value 145$ Projected Response Rate 0.20%Projected Responders 2,000 Total Sales 290,000$ Commission as % of Net sales 15%Total Projected Commission Income: 43,500$
Expenses/Total Costs:Split per list per M 0.75$ 750$ Demographic charge per M 2.50$ 2,500$ Makeready -- flat fee 100.00$ 100$ Run charge per M 5.00$ 5,000$ Extra Postage Costs N/A -$ Management Commission (% of Sales) 1% 2,900$ Total expenses 11,250$
NET 32,250$
GROSS REVENUE TO PARTNER (before COGS) 257,750$
![Page 12: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/12.jpg)
What else to prepare?
Develop Budget and forecasting by program/channel
Build Schedule– Due dates by channel– Contact Management by channel
Outline Sales Efforts
![Page 13: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/13.jpg)
Developing Relationships…
Create the tools you need to make the first contact.
Could include:– Presentation on your company or offering– Brochures– Contract/Non Disclosure Agreement (NDA)
![Page 14: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/14.jpg)
Internal Support Considerations
Legal
Finance
Information Technology
Customer Service
Marketing
![Page 15: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/15.jpg)
Legal Considerations
NDA v. real “contract”
Use of contract as a Sales Tools– Defining what matters
Other considerations –what you can include:– Merge Purge Priority– FTC and Privacy regulations– “Proof of Enrollment” for club membership offerings
![Page 16: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/16.jpg)
Financial Considerations
Internal Allocations – costs and income by channel
Resources and Tracking Mechanism – To create budget to track actuals
![Page 17: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/17.jpg)
IT Considerations
Proprietary Card implications– Adding an additional method of payment
Website Interface
![Page 18: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/18.jpg)
Customer Service Considerations
Simple Redirection– Toll-Free # for redirect– Hours of Operations– Training efforts:
Regular Sample Distribution to your facilities for partner recognition
Mature effort might also include:– Assignment of key person in each facility to be your 3rd
Party “expert”– Product Fairs
![Page 19: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/19.jpg)
Marketing Considerations
Use of Broker/Manager Marketing Services
– List Fulfillment– Program execution/support
Print and Production Coordination Creative Review Tracking/Response Analysis –
– By Partner– By Program/Channel
Credit Marketing – how important is proprietary credit?
![Page 20: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/20.jpg)
Creative Considerations
Creative matters! Endorsement and placement Formats Include ALL terms and conditions – no
customer confusion
![Page 21: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/21.jpg)
The Checklist:
1) Identify customer base and what offers interest them
2) Analyze potential partner base3) Determine what marketing channels you will
put to use4) Develop P&Ls (by channel)5) Create realistic budget for your program
![Page 22: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/22.jpg)
Checklist continued…
6) Create tracking/reporting7) Compose contract8) Develop sales tools9) Lay foundations for internal support10) Start building relationships!
![Page 23: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/23.jpg)
Recommendations from the experts!
Alissa Joe Tom Milton Jill
![Page 24: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/24.jpg)
Questions?
![Page 25: Partnership Marketing](https://reader036.vdocuments.site/reader036/viewer/2022062222/56816028550346895dcf302b/html5/thumbnails/25.jpg)
THANK YOU!
For a copy of this presentation…..