What are marketing alliances ?
- Very often companies need to team up with other firms that have:
- Access to a desirable market segment
- Access to a geographic area
- Unique operational expertise
- Larger sales force
- or any other core competency, strategic or operational expertise that each alliance partner has that other partner wants equally
- In such situation, complementary business objectives form the common ground of alliances or joint product ventures
- E.g. a Pizza chain partnering with a movie theater chain when promoting its products and vice versa
- Forming alliances may be easy, but managing alliances is extremely difficult and often time consuming
- It usually consumes quite a bit of effort, time and money
- Furthermore, there may be publicity that needs to be called out in the promotional plan section
- If this is part of your go-to-market strategy, or part of your market penetration strategy, this should be articulated in the Marketing plan
An understanding that alliances can be beneficial but one must be vary of the overhead costs spend v/s the value earned forming the alliance.
Source: Haines, S. (n.d.). The Product Manager’s Desk Reference.