Partnership marketing

Khomenko Liliia

PhD student, assistant of Department of Marketing

l.khomenko@biem.sumdu.edu.ua

Liliya-khomenko@i.ua

(099)076-95-93

Partnership marketing

Topic 1. Basic concepts of affiliate marketing

Topic 2. Affiliate marketing

Topic 3. Partnership content

Topic 4. Sponsorship

Topic 5. Charity

Topic 6. Joint Products

Topic 7. Distribution partnership

Topic 8. Shared stores

Topic 9. Product placement

Topic 10. Partnership loyalty programs

Topic 11. Licensing and frinchising

Topic 12. Partnership ecosystem and other partnership tools

The purpose and results

• The purpose of the academic discipline is the formation of theoretical knowledge and practical skills for building, maintaining and expanding strong long-term, mutually beneficial relationships with key partners of the organization.

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After successfully studying the academic discipline, you will be able to:

1. Use modern marketing approaches and concepts to create unique relationships with partners.
2. Develop partner programs for enterprises.
3. To substantiate management decisions regarding participation in partner programs.

Discipline regulations:

• Theoretical sections of knowledge 12x3=36 points

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• Situational and practical tasks (solution, presentation, discussion) 11x3=30 points

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• Implementation of an individual research project 11 points

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• Сomplex written modular control 2x10=20 points

Individual schedule:

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Testing based on theoretical material 12x3=36 points

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Situational and practical tasks (solution, presentation, discussion) 11x3=30 points

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Implementation of an individual research project 11 points

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Сomplex written modular control 2x10=20 points

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Literature

1. Cristal J. The Complete Guide to Partnership Marketing: How to Create Successful Marketing Collaborations. CreateSpace Independent Publishing Platform. 2018. 200 р. URL: https://econsultancy.com/a-complete-guide-to-partnership-marketing-part-one/, https://econsultancy.com/a-complete-guide-to-partnership-marketing-part-two/
2. The Complete Guide to Partnership Marketing Course. URL: https://www.udemy.com/course/the-complete-guide-to-partnership-marketing-course/
3. Partners and Partnerships . URL: https://www.udemy.com/course/partners-and-partnerships/
4. Blog about Partnership Marketing. Breezy.io. URL: https://breezy.io/blog
5. Marketing Media Review. URL: https://mmr.ua/

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• Other books about marketing, marketing service, partner marketing

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Topic 1. Basic concepts of partnership marketing

1.1. The role of partnership marketing in the goods and services markets

1.2 The concept of partnership marketing

1.3. Partnership marketing tools

1.4. Building a partnership strategy

1.1 The role of partnership marketing

«To truly allow your company to stand out (diverse), you cannot stand alone».

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Companies create more together.

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1.2 The concept of partnership marketing

• A partnership is where two or more brands collaborate via strategic marketing campaigns to help each other achieve their objectives.
• It is where a primary brand has the ideal product or service to complement a secondary brand, utilizing target audiences to improve its value proposition
• Partnership marketing refers to a collaborative marketing effort involving two or more businesses.

1.2 The concept of partnership marketing

The 4 top benefits of partnership marketing

1. Increase your reach.

2. Share the workload. 

3. Grow word of mouth. 

4. Add value for your audience.

1.3. Partnership marketing tools

1.3 Partnership marketing tools

• Affiliate marketing is a performance marketing technique were websites, otherwise known as publishers, will promote your product or service in exchange for a monetary reward.
• Content marketing partnership is a form of affiliate marketing that involves the creation of valuable and relevant content by partner companies to attract and retain consumers, ultimately leading to increased sales and profits.
• Charitable is a voluntary, selfless donation of material, financial, organizational, and other charitable assistance to its recipients by individuals and legal entities. This is selfless giving of help to those in need who are not related to the benefactor.
• Sponsorship is a marketing tactic of placing a brand next to a certain event, showing itself as a partner or supporter, and aiming to increase its recognition and reputation.

1.3 Partnership marketing tools

• A joint product is when two (or more) brands work together to launch a new product or improve an existing one.
• A distribution partnership is when one partner agrees to cross-market or integrate the other partner's products or services into its distribution channels to target an approved customer base.
• Shared stores are when a partner provides an agreed space in its store for another partner's brand. The primary brand leases or expands its retail outlet to integrate the secondary brand and obtain additional value for its consumers.
• Product placement - subtle brand placement in a media channel works well in partnership with high-class television and film productions.

1.3 Partnership marketing tools

• Partner loyalty programs are a retention marketing method that offers consumers a reward in exchange for increased usage; while providing consumers with affiliate offers to encourage longevity and frequency of purchases.
• Licensing is a business arrangement whereby one company permits another company to manufacture its products using its brand image for an agreed fee or partnership.
• Outsourcing is when a company delegates part of its operations to another company to save time, resources, or money – or to gain expertise that cannot be found in-house.
• A joint venture occurs when two or more companies (known as parent companies) join together to form a smaller company (known as a subsidiary).

1.4 Building a partnership strategy

Stages of building a partnership strategy:

1. Setting your goals
2. Choosing the best partners
3. The negotiation process
4. Tools & tech stack
5. Scaling them and turning them into a source of income

1.4 Building a partnership strategy

Targeting:

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• Трафік веб-сторінки та кампанії
• Реєстрація на подію
• Повторне завантаження
• Маркетингові кваліфіковані потенційні клієнти (чисті нові потенційні клієнти)
• Реєстрація облікових записів
• Продажі кваліфікованих потенційних клієнтів
• Можливості для чистих нових клієнтів і збільшення продажів
• Кількість учасників
• Дохід

1.4 Building a partnership strategy

Choosing the best partners :

• How long have you known the partner, and are they reliable?
• Are your messages and values aligned? Will your partnership benefit both parties?

«The partnership between your business and your partner should make sense for both the consumer and you».

«Before you enter any partnership, it’s important to take a look at how that potential partner performs».

1.4 Building a partnership strategy

Evaluation of partners :

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• How will we target this audience?
• What will be our "better together" story?
• Each of the resources responsible for the contribution?
• What metrics will we use to measure success?
• What is a timeline?

1.4 Building a partnership strategy

Negotiation process.

Both parties must agree:

• The responsibilities of each stakeholder
• Goals and what success looks like
• For paid partnerships: the revenue model, goals, and what success looks like
• For co-marketing partnerships: sharing the content, who does design, who hosts the project, and determine the campaign period & dates

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Writing an agreement:

• Project details
• Timeline and promotion
• A data privacy section

1.4 Building a partnership strategy

Tools and technical elements:

• CRM tool
• A way to do account mapping
• Document and asset sharing solutions
• Communication tools

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1.4 Building a partnership strategy

Scaling them and turning them into a source of income.

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Тopic 2. Affiliate marketing

• 2.1 Affiliate marketing basics
• 2.2. Affiliate marketing using
• 2.3. Organization of participation in the affiliate program
• 2.4. Сompanies experience in the development of affiliate programs
• 2.5. Affiliate programs development

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2.1 Affiliate marketing basics

Affiliate marketing is a performance marketing technique where websites otherwise known as publishers will promote your product or service in return for a monetary reward.

2.1 Affiliate marketing basics

• There are three ways brands can work with affiliates:
• In-House – when a primary brand is looking for a solution that provides them with the ability to upload all creative banners, allow an affiliate to select the type of campaign with relevant tracking links and display all results in one centralised location, they use an affiliate program.
• Networks – a third party where both advertiser and publisher register and utilise its services all through the network’s external portal. A major benefit to brands over an in-house solution is that it provides far greater reach for publishers to find relevant brands to promote, while the advertiser is immediately exposed to thousands of publisher sites rather than having to promote their own in-house programme.
• Agencies – a third option is to work directly with an agency which manages the portfolio of affiliates as well as the operations behind it such as banners and tracking links. An agency can also be a network, or they can manage your own in-house solution, ultimately they should support your requirements in this channel.

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2.1 Affiliate marketing basics

Promotional formats include:

• banner ad – banner ads are one of the more common forms of exposure for a partner brand on a publisher site. Header (728×90) or Skyscraper (160×600) banners are most popular.
• text link – a simple hyperlink often found within an article. It is more subtle than a banner ad.
• dedicated article – a strong partnership between brands can lead to more unique forms of exposure. A dedicated article can engage a target audience and provide a more detailed product description than that of a text link or banner ad.

2.1 Affiliate marketing basics

Promotional formats include :

• promotional page – exposure of advertisers through specific areas of the publisher’s site devoted to promotional offers. Here promotional banner ads can be kept separate from the core content.
• newsletters – for those affiliates that require accounts to be created or email addresses to be captured newsletters are a strategic way for them to directly market affiliate offers. 6Groupon and 7Quidco for example are excellent at targeting their segmented database with the latest partner deals.
• comparison table – for aggregator sites such as Money.co.uk (below) and Confused.com the comparison table is a huge USP, adds value, and attracts customers over other affiliates. It allows them to rank advertisers by pricing, features and benefits to consumers.

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2.1 Affiliate marketing basics

2.2 Affiliate marketing using

Partner (affiliate) marketing is used :

• YouTube bloggers who create content on the topic of unboxing with a detailed story about the product, indicating a link to the online store.
• In advertising on forums. If a potential partner has already established themselves as someone who is listened to and trusted, then their short story about the product can help the business attract new customers and the partner can earn a commission on each sale.
• In banner advertising. Sites or bloggers whose content is thematically related to the product, or sites visited by the product's target audience, place their banners, and each visitor who makes a purchase receives a commission.
• Bloggers on social networks who share links to products advertised in both open and native advertising formats.
• In e-mails, when the selection of recommendations for subscribers includes products of partners that are advertised.
• During conducting offline and online promotions with gifts and discount coupons: when buying something from one seller, the buyer automatically receives a discount on the partner's product.

Використання афіліативного маркетингу

Some examples of such programs:

• video on YouTube with unpacking of goods. You shoot a video, talk about the product in detail, draw the audience's attention to its advantages and features. A mandatory item is a link to an online store where users can purchase the product;
• • live webinars. Such reviews take video advertising to a new level. Viewers and potential customers can interact with you in real time. Many buyers like this experience. It builds loyalty and trust in the company or product;
• • banner advertising. A simple, proven and effective method. All that is required is to find web resources thematically related to a product or service and place an advertisement on them. The main thing is to choose a site with high traffic, so you can reach a large number of potential buyers;

Використання афіліативного маркетингу

Some examples of such programs:

• social networks . These are sites with a large number of users, each of whom can become a customer. Properly designed advertising will allow you to get the desired reaction from the audience. The main task is to attract attention to the product, to evoke emotions. Then you will achieve the final target action - sale;
• • advertising on forums. On thematic sites, you can establish yourself as an expert who is listened to. The main thing is to be useful. Complement your recommendations with links to products, and the reward for partnership in the Internet business will not be long in coming;
• • intermediate landings. Complex one-page schemes increase conversion rates and allow you to control traffic flows. Creating such a website will take little time when using ready-made templates that can be edited for an affiliate offer

2.3 Organization of participation in the affiliate program

• Stage 1. Search for a product or company that will be the main subject of advertising.
• Stage 2. Partner.
• Stage 3. The buyer

How to make the project successful?

• Quality content.
• Correct SEO.
• Use of social networks. Upselling.

2.3 Organization of participation in the affiliate program

How to become a partner of the company and lead it to success:

1. Conduct an analysis.

2. Reach a mutual understanding with potential buyers.

3. Be honest with the buyer.

4. Use different channels for advertising.

5. Analyze data from marketing campaigns.

6. Follow modern methods.

7. Use tools.

8. Be patient and persistent.

How to become a brand partner? You need to do only 4 steps:

1. Choose a niche and a specific product for sale.

2. Collect subscription for sale.

3. To increase the loyalty and form the trust of the audience.

4. Use PPC.  

2.4 Сompanies experience in the development of affiliate programs

• Amazon Associates. The company offers an affiliate marketing program that earns you money by placing ads on your site. Each purchase after clicking on the link brings referral income. The main advantages of the platform: trust and loyalty of users, variety of products and high probability of completed transactions. Ads can be customized to show products from a relevant site topic or category section.
• International partner network with various models of cooperation. You can receive a percentage for a click, registration, sale. The reward level for the latter is up to 50%. And you can get $100 per click. Withdrawal of funds is carried out by check or bank transfer. The payment schedule is once a month, subject to reaching the minimum limit, which is set in the settings.

2.4 Сompanies experience in the development of affiliate programs

• Commission Junction. An advertising company that helps publishers and sellers find partners to promote their products and services. She provides free professional guidance on how to market your product and reach the largest audience. With the growth of a partner, new opportunities and options for cooperation with large, world-famous brands open up for him.

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2.4 Сompanies experience in the development of affiliate programs

• Advertising stories: recommendations, coupons, promotional codes, unwrapping deliveries and gifts.

2.4 Сompanies experience in the development of affiliate programs

• Professional advertising posts: studio or simply high-quality production stories with a demonstration of the product and a description of the benefits

2.4 Сompanies experience in the development of affiliate programs

• Native advertising: as if accidentally mentioning the brand in publications, as a personal recommendation, exchange of impressions, and simply the appearance of the name or logo of the brand in a photo (as if by accident).

Affiliate programs development

• Search for an idea to develop a popular product.
• Testing the idea.
• Product creation.
• Search for partners.
• Earnings of partners. 

Topic 3. Content-marketing partnership

3.1. Content-marketing basics

3.2. Content-marketing partnership tools

3.3. Сompanies experience in the content co-creation

3.4 Stages of content strategy development

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3.1 Content-marketing basics

• Content marketing is a form of partner marketing that uses valuable and relevant content to attract and retain consumers, ultimately resulting in making sales and growing revenue.
• It’s different from traditional marketing methods in that it’s generally less ‘sales-y’.
• In other words, rather than screaming ‘buy our amazing product now!!!!!’, content marketing tends to take a softer approach.

It has two benefits:

1. It presents you as an expert
2. It can help you to be found through search engines

3.2 Content-marketing partnership tools

There are two main ways a brand can partake in content partnerships:

• Co-creation – both brands collaborate to create the content. This could be industry trends, market research, product releases or thought-leadership papers. By writing the content together and referencing one another’s products it will align both brands for mutual recognition.
• Link sharing – the primary brand creates the content but works in partnership with a secondary to promote it. Link sharing means linking to the partner’s content from their own site. This provides exposure, aligns both brands together, and advances SEO.

• Advertising content

The most popular way to interact with bloggers is through photos or videos.

As a rule, the opinion leader talks about the use of the advertised product from personal experience or ties its benefits to the topic of his video.

Such advertising is an integral part of content longer than 1 minute.

Here's an Instagram marketing example from Carl Thompson, founder of menswear brand Hawkins and Shepherd.

• Джерело: https://blog.uamaster.com/formati-prosuvannya-brendu-v-inflyuenser-marketingu/ 

• Reviews

One of the most common ways to work with influencers is to give them a product for free in exchange for publishing a review of it.

The video with the "unpacking" of the product is a vivid example of such interaction between the brand and the blogger.

Here's an example from Benjamin Burnley of the popular rock band Breaking Benjamin, whom EA Games approached to talk about their Star Wars Battlefront game:

• Джерело: https://blog.uamaster.com/formati-prosuvannya-brendu-v-inflyuenser-marketingu/ - блог UAMASTER digital agency.

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• Competitions and prizes

Typically, brands offer a free product or service for the influencer to offer to their followers. Contests and giveaways may contain the following mechanics:1. Interaction directly with the blogger's post, for example:

Publication preferences;A comment with a certain phrase, hashtag or photo;

Tag 3 friends in the comments.2. Interaction with the brand outside the post, for example:

Liking or following a brand page on social networks;

Going to the brand's website to register through a form or mailing list;

Submitting photos, stories or other content for brand consideration.

Here's an example of how fitness expert Angie Fletcher gave away a Natural Life gift box to users who followed the brand's Instagram and tagged one person in the comments on her post.

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• Джерело: https://blog.uamaster.com/formati-prosuvannya-brendu-v-inflyuenser-marketingu/ - блог UAMASTER digital agency.

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• Product and content collaboration

Some brands work closely with thought leaders to co-create products or content.

This is often seen in the beauty and fashion industry, where influencers create their own branded line of clothing, accessories or beauty products.

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For example, the beauty blogger, Jacqueline Hill, created an eyeshadow palette in collaboration with the international cosmetics brand Morphe.

• Джерело: https://blog.uamaster.com/formati-prosuvannya-brendu-v-inflyuenser-marketingu/ - блог UAMASTER digital agency.

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• Ambassadors of the brand
• More and more thought leaders are collaborating in this format. Some make such collaborations even more exclusive — bloggers and brands jointly create new products.
• For example, courses, clothing collections, a new pizza flavor, and more.
• An example can be the collaboration of the platinum rapper Post Malone with the equally famous shoe brand Crocs, which gave tremendous results: the entire lot of this model was sold out in 8 seconds!

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• For example, fitness guru Matt Upston posts a tweet celebrating three years as an ambassador for the sports nutrition company Science in Sport.
• Джерело: https://blog.uamaster.com/formati-prosuvannya-brendu-v-inflyuenser-marketingu/ - блог UAMASTER digital agency.

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Content partnership tools

Сompanies experience in the content co-creation

The Telegraph & Visit the USA

Подивитися можна за лінком: https://www.telegraph.co.uk/travel/discover-america/evolution-of-music/

Сompanies experience in the content co-creation

VICE & Vans

https://www.vice.com/en/topic/boardly-created-with-vans

Сompanies experience in the content co-creation

WIRED & HP

https://www.wired.com/brandlab/2018/04/rising-voices-black-girls-code/

Сompanies experience in the content co-creation

The Washington Post & Optum

https://www.washingtonpost.com/brand-studio/optum/working-to-end-the-epidemic/

Сompanies experience in the content co-creation

Intel & UPROXX

https://uproxx.com/shows/cre8/

Сompanies experience in the content co-creation

Easterseals & Variety

https://feature.variety.com/disability/home

Сompanies experience in the content co-creation

Cole Hann & T Brand Studio

https://www.nytimes.com/paidpost/cole-haan/grit-and-grace.html

Stages of content strategy development

1. Affiliates and SEO. There are three kinds of affiliate links:

• Network links.
• Direct links with parameters.
• Direct links with no parameters.

2. Sponsorship content

3. PageRank

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How to get backlinks from partners?

1. Identify potential partners

2. Get to know them

3. Offer them something in return

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Topic 4. Sponsorship

4.1. Sponsorship as partnership type

4.2. Sponsorship advantages and directions

4.3. Patronage as partnership

4.4. Сompanies experience in the sponsorship

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4.1. Sponsorship as partnership type

• Sponsorship is the marketing tactic of placing a brand alongside a particular event, displaying itself as a partner or supporter, with the objective to increase brand recognition and reputation.

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• There are various objectives to sponsorship and these lie under three key banners:
• Awareness – aligning a product alongside an event for mass exposure is the most common type of Sponsorship. The aim is to have the largest possible reach of your brand to both existing and new consumers.
• Association – linking the product with a cause, person, or event to provide a brand association in the eyes of the consumer. Every time you think of that event you will tie that in with the sponsored brand too.
• Consumer understanding – sponsorship can link a brand proposition with an event so that it provides product education to the consumer. Some propositions are more complex than others so sponsorship is seen as an effective way to teach a consumer what the product can offer.

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4.1. Sponsorship as partnership type

There are several varieties that are commonly found across many of the world’s popular partnerships:

• Sporting sponsorships – some of the most expensive yet effective forms of brand exposure. They can be found within every popular sport from team sponsorships, stadium names, board advertisements, and player endorsements.
• Media sponsorship – any sponsorship found within TV, film and radio are all forms of media sponsorships; the sponsoring of a new television series is a great example. It is an effective tactic for mass brand awareness.
• Event sponsorship – the World Cup, Olympics, and charity events such as the London Marathon, are all examples of this. The Olympics was in such high demand for London 2012 that there were sponsors for nearly every possible association: drinks, supermarkets, and even an official furniture sponsor.
• Local sponsorship – a niche but highly effective form where local businesses look for exposure towards a specific market. Local farmers market, charity events and political conventions, all provide a brand the opportunity for exposure.
• Seal of approval – with foods, health products and luxury items such as holidays a seal of approval is a powerful tool. When a hotel or restaurant has the TripAdvisor certificate displayed it provides that seal of approval we know and trust.

4.2. Sponsorship advantages and directions

• A sponsor is a voluntary material, financial, organizational and other support of individuals and legal entities to recipients of charitable assistance for the purpose of promoting exclusively their name, their brand for goods and services (according to the Ukrainan Law on Charity and Charitable Organizations).
• Sponsorship is the participation of a natural or legal entity in direct or indirect financing of programs with the aim of promoting exclusively its name or TM. Sponsored promotional materials are placed outside the advertising blocks.

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Why become a sponsor:

• to stand out from other advertisers,
• to ensure the exclusivity of your product in the distribution channel,
• to acquire a certain status,
• to get the required image,
• to make your brand more emotionally colored.

4.2. Sponsorship advantages and directions

A high communicative and financial effect is determined by the fact that:

• the actions of the sponsor are superimposed on a very favorable background inherent in most sponsored events;
• the name of the sponsor is mentioned in a positive context;
• sponsorship allows you to stand out against the background of advertising blocks;
• participation in sponsorship projects allows you to achieve an effect at low costs.

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Sponsorship directions:

• consumer-oriented
• on the formation of broad public opinion;
• on the formation of communications with employees of the sponsor company itself.

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Advantages of sponsorship over other methods of social activity:

• An opportunity to publicly declare the social orientation of the company's policy.
• The possibility of placing sponsored advertising.
• Equal benefit for both the object of sponsorship and the sponsor.

4.2. Sponsorship advantages and directions

+Advantages

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For the sponsor

• Brand awareness: Sponsorship offers brands the chance to get in front of new (and often, large!) audiences.
• Reputation: By aligning themselves with something that their audience really cares about, such as a sports team or TV programme, brands can improve their reputation.
• Brand positioning: Brands can use sponsorship to reach specific demographics, in the same way as Red Bull was able to get the attention of a sporting audience by sponsoring sports events and athletes.

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For the sponsee

• Financing: Sponsorship helps to offset the cost of carrying out the sponsee’s activity, whether it’s holding an event or staging a sports game.
• Expertise: In the case of in-kind or media sponsors, the sponsee gets exclusive access to a brand’s network and expertise.
• Authority: Getting a household name as a sponsor can help to lend a sponsee’s activity legitimacy.

-Disadvantages.

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For the sponsor

Hard to measure: Sponsorship marketing can be hard to track and measure, particularly when activities take place offline.

Passive: Usually, sponsorship is fairly passive, without many opportunities to give audiences a CTA. This makes it better suited to gaining brand awareness than hitting sales targets.

In high demand: The biggest sponsorship opportunities can be competitive, making them hard (and expensive!) to access. However, don’t underestimate the power of sponsorship in smaller, less competitive niches, such as local opportunities.

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For the sponsee

Balancing needs: Sponsees can find it hard to cater to the needs of both the sponsor and the audience. For example, a sponsor may want airtime, but the audience may not enjoy having to listen to an hour-long pitch!

4.2. Sponsorship advantages and directions

There are three main areas of sponsorship:

• Sponsorship of the social sphere includes support for sports (sports are the most widely sponsored), education, medicine, science, and ecology. By developing the social sphere and social infrastructure, the sponsoring company demonstrates social responsibility, concern for the well-being and development of society. It is common practice to publicly inform all interested persons about the conditions of the company's sponsorship of certain projects.

For example, Megabank sponsored the international marathon in Kharkiv, the Staropramen brand - the Leopolis Jazz Fest 2019, etc.

• Socio-political sponsorship support is a special type of social investment. This is not only the sponsorship support of political parties provided for by the legislation, but also the provision of assistance in the development of non-profit public organizations (NGOs).
• Events of a local nature and scale, fueled by sponsorship, can be related to various spheres of human interaction: this is support for show business (some specific artist or musical event, for example, something like "Stars against drugs"), and support for the development of any which Internet sites of a certain thematic orientation.

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4.2. Sponsorship in Ukraine

«АТБ» supports various sports. In 2016-2017, ATB Corporation helped organize the following events:

• 14th youth boxing tournament in Lviv,
• Second Championship of Ukraine in autocross-2017,
• Dnipro ATB Marathon, which included the Ukrainian Marathon Running Championship,
• General sponsor of the Ukrainian beach soccer competition "ATB Super Cup of Ukraine 2018"

4.3. Patronage as partnership

• Patronage is a voluntary, selfless activity of individuals in material, financial and other support of recipients of charitable assistance. The name comes from the surname of the Roman Maecenas (Mekenates), who was a patron of the arts under the emperor Augustus and a friend of Horace and other poets.
• Patron is a person who ideologically takes care of this or that project, because it requires more than just money.

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The difference between patronage and charity.

• Charity does not mean patronage, but rather development. It is most often about getting from a negative to zero. Charity concerns health, for example, children and the homeless, etc. Sometimes charity can be called help to a museum or other cultural institutions, but more in the decision of some specific help.
• As for philanthropy, this is a person who selflessly supports the development of culture and education.

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4.3. Patronage as partnership

• The "Friends of the Museum" mechanism works in the Odessa Art Museum

4.3. Patronage as partnership

• Olga Bogomolets started the castle-museum "Radomysl" with a unique collection of household icons.

4.3. Patronage as partnership

• Also, Olga Bogomolets started Melanoma Day, since the dies from it in Ukraine is 85%, and in the USA it is only 5%. On this day, many clinics examine thousands of people for free.

4.4 Сompanies experience in the sponsorship

• Coca-Cola and the Olympic Games

4.4 Сompanies experience in the sponsorship

• PepsiCo and NFL

4.4 Сompanies experience in the sponsorship

• Rolex and TED

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4.4 Сompanies experience in the sponsorship

• Nike and Cristiano Ronaldo

Topic 5. Charitable

5.1 Charitable features in partnership marketing

5.2. Charity project organization

5.3. Companies experiences in charitable.

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5.1. Features of charity in affiliate marketing

• Charitable is a primary brand sponsors or markets itself with a charitable organisation or cause. In turn they seek exposure and promotion via agreed marketing channels.

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• A charity benefits from receiving support, be it marketing, staff, finance or volunteering.
• A brand gets a boost in recognition and acquisition by improving its reputation.

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• How it works: In a charitable partnership, a business supports a charity by sharing resources, making an annual donation or participating in a fundraiser.

• In 2017, McDonald's launched a charity event in Argentina, in which it donated all the money received from the sale of Big Macs to the fight against oncology. On the same day, Burger King announced "No Whopper Day" and removed the burger from the menu to encourage sales of the competitor's burgers. The Burger King mascot personally visited one of the restaurants to buy a Big Mac. Thanks to the campaign, it was possible to sell 73,000 more burgers than on the same day a year earlier.

5.1. Charitable features in partnership marketing

Benefits can be very fruitful when working with a charitable cause. We have pin-pointed two main reasons why a primary brand would do partner with a charity:

Cultural influence – a brand can primarily work with a charitable brand to offer a moral contribution. This is part of company culture and CSR and often attributable to the attitudes of senior stakeholders.

Brand leverage – some firms prefer to associate themselves due to the benefits it brings to their consumer and public reputation.

5.1. Charitable features in partnership marketing

A brand can improve its reputation in three key ways:

1. Corporate social responsibility.

2. Company culture.

3. Brand reputation.

5.1. Features of charity in affiliate marketing

Innocent Smoothies for example, one of the most reputable drinks companies in the UK, stressing the importance of fair-trade production, also associate themselves with a number of charities via their Innocent Foundation. Firms such as this that can leverage a Charitable Partnership for marketing purposes will see their public reputation and brand image vastly enhanced.

Some enterprises have already made it a rule to prepare annual reports on corporate social responsibility (1+1, Foxtrot, Farmak, Watsons, Loreal Ukraine, Nova Poshta, Auchan, etc.).

5.2. Organization of a charity project

1) Define the audience

Direct recipients of assistance.

Partners who help with finances or other resources.

Donors, grant givers.

Volunteers of the organization and, if available, full-time employees are consumers and translators of BO culture.

Other benefactors are not only organizations specializing in your topic, but also others, including activists who do not register as BOs.

Administrative bodies.

Local community - residents of the city, district, region where your programs operate.

Politicians and political associations that can draw attention to your project.

Potential volunteers or employees, if your activity involves their involvement.

A special role of journalists.

5.2. Organization of a charity project

2) Specification of each category. People work in the biggest brand, the most powerful state body. Therefore, audience categories must be turned into specific portraits in order to properly package messages. Allow categories to pass through the filter (items are adapted as needed):

• Demographics: gender, age, marital status, level of education, occupation.
• Territoriality: where he lives, works or studies, where he spends his leisure time, rests and shops.
• Financial issue: income level, whether he earns independently and how hard, what he spends on and what he can afford, apart from covering basic needs.
• Social aspect: place in the social hierarchy, political preferences, presence of discrimination on any grounds.
• Psychology: peculiarities of behavior, values, circle of communication, authorities and idols, admiration.

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5.2. Organization of a charity project

3) Selection of communication channels.

4) Work with social networks. Some tips:

a) Useful from "harmful" niches.

b) Appearance.

c) Thanks to partners.

5) Search for a partner.

6) Integration with a partner.

5.2. Organization of a charity project

The interaction will be a win-win for both parties, because:

• BO will strengthen integration with the brand, which will positively affect the company's reputation;
• the company will increase target media coverage of projects;
• both parties will be able to build correct communication with the audience (BO – physically, the company – media);
• partners will add transparency to the interaction - the company will not doubt the veracity of your statistics.

5.3. Companies experiences in charitable

ATB. Refugees, ATO soldiers, families of About UAH 200,000 worth of products are transferred to the frontline and "gray" zone every month.

In 2016-2017, 12 targeted assistance programs were implemented, the total budget of which amounted to UAH 6.5 million.

In 2016-2017, more than UAH 20 million was sent to help the Ukrainian army, families of ATO soldiers, refugees, and children of the "gray" zone.

On October 29, 2018 in the city of Kramatorsk, on the initiative of the Commander of the United Forces, Lieutenant General Serhiy Naev, with the support of the ATB Corporation and the National Union of Theater Actors of Ukraine, the National Art Project "ARTPEREMYRYA" was launched. The main goal of the project is to promote cultural revival in the region, to attract leading art groups from all over Ukraine to create a positive emotional...

5.3. Companies experiences in charitable

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The "ATB" Charitable Foundation handed over modern medical equipment worth over UAH 190,000 to the Odesa Regional Children's Clinical Hospital

5.3 Companies experiences in charitable

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The "ATB" Charitable Foundation handed over modern medical equipment worth over 323,000 UAH to the Lviv Regional Children's Hospital Okhmatdyt

5.3. Companies experiences in charitable

The project "Find your own in the museum" included ten famous paintings from the museum's exposition, which were supplemented with real photos of animals that are under the care of shelters. Each collage was accompanied by a description of the animals participating in the exhibition, as well as the contacts of the shelters where this animal is located.

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The company "Foxtrot" acted as partners of the charity photo exhibition

https://mmr.ua/show/soczialnyj-proekt-prizval-najti-pitomcza-sredi-muzejnyh-eksponatov

5.3. Companies experiences in charitable

Loreal company. L'Oréal Corporate Social Responsibility Day is celebrated every June. So, in 2019, on this day, all participants-collaborators were divided into 3 groups. The first of them, with the support of the Blood Center, participated in donating blood. Volunteers of the second group planted boxwood bushes in the Holosiivsky Park of Kyiv, the third group - visited the center for homeless animals: they built booths and helped in the socialization of animals.

Crowdfunding campaign

Online training

Online hackathon

Humanitarian help

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5.3. Companies experiences in charitable

Since the beginning of the Russian invasion and the war in Ukraine, the L'Oréal company has focused all its efforts on providing Ukrainians with hygiene products. The L'Oréal Group has donated 5 million euros for humanitarian support for forcibly displaced persons. In 2.5 months, L'Oréal Ukraine delivered approximately 300,000 hygiene products to more than 20 settlements in Ukraine.

5.3. Companies experiences in charitable

Gillette і Movember

5.3. Companies experiences in charitable

Disney і Together for Short Lifes

https://youtu.be/q08ZRsZjE9Q

5.3. Companies experiences in charitable

Старбакс і Русалки

https://youtu.be/pcSP1r9eCWw

5.3. Companies experiences in charitable

Target і ЮНІСЕФ

5.3. Companies experiences in charitable

Лореаль

The strategy of sustainable development of L'Oréal is built on three key directions, as well as with the goal of reducing the impact on nature, which must be achieved by 2030:

1. Transformation of one's activity in order to preserve planetary boundaries.

2. Expanding the capabilities of the business ecosystem, which helps its participants move to a more sustainable world.

3. The company contributes to solving global social and environmental problems.

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5.3. Companies experiences in charitable

https://mmr.ua/show/za-pidtrimki-favbet-foundation-zsu-otrimali-15-avtomobiliv-dlya-frontu

5.3. Companies experiences in charitable

The Carlsberg Ukraine company cooperates with Ukrainian food banks - the charitable organization "Ukrainian Food Fund" and the Kyiv City Charitable Fund "Foodbank". In 2021, the company handed over non-alcoholic products to the organization, including kvass, worth more than 2 million hryvnias. It was delivered to hospitals, pensioners, geriatric boarding houses, and also redistributed among regional charitable organizations.

Topic 6. Joint products

6.1. Joint products basics

6.2. Joint products directions and types

6.3. Joint products organization

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6.1 Joint products basics

• Joint products is when two companies agree to create a new product or alter an existing product in order to provide additional value to the customer.

Often the product is an amalgamation of both products aiming at mutual target audiences.

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Brands wanting to form a joint product partnership usually do so for one of two reasons:

• To expand their product or offering: A brand might find it quicker or easier to work with another brand to fill a gap in their offering, as opposed to working on a new product themselves.
• To aid distribution: A brand might find it useful to team up with a partner whose customers are a perfect fit for its product, enabling it to leverage a partner’s existing distribution base.

Dolce & Gabbana x Smeg (італ. виробник побутової техніки). In 2017, the Sicily Is My Love line was introduced, which included blenders, coffee makers, refrigerators and other items decorated with patterns inspired by the works of Sicilian craftsmen.

• ІКЕА x Virgil Abloah (American designer and creative director of the Louis Vuitton men's line). The collection includes a short-pile rug in the form of an IKEA store receipt, a white clock with a dial without numbers, a green fluffy rug with the inscription WET GRASS, a wall lamp with an imitation of the Mona Lisa painting, and more.

• ІКЕА x BYREDO (Swedish manufacturer of perfumes, leather goods and accessories). In 2020, a collection of 13 scented candles was released. Each one is housed in a ceramic container with two colors representing the ingredients of the candle: fig and cypress, blackcurrant and freesia, wood and spice, and even tobacco and honey.

• ІКЕА x LEGO. In 2019, LEGO and IKEA launched the BYGGLEK collection (from the Swedish BYGGa - "to build" and LEKa - "to play"), designed to "combine storage and play". It includes a LEGO BYGGLEK set of 200 parts in different colors and BYGGLEK containers of different sizes. You can fold cubes into them or use them as a building element by attaching parts to them.

• LEGO x Adidas. In the summer of 2021, the manufacturer of LEGO constructors, in collaboration with the sports brand Adidas, created a collectible LEGO set that allows you to assemble a realistic copy of the classic model of adidas Originals Superstar sneakers. This is not the first collaboration between LEGO and Adidas – in 2020, they released the ZX 8000 sneakers in signature bright LEGO colors with inserts imitating the surface of the constructor. At the same time, a set was released that allows you to gather this model.

6.2. Joint products directions and types

The main collaboration choices:

• Powered by – a partner brand supplying their services to benefit a new or existing product. Often software providers will provide their technologies for a product. Mobile phones powered by a technology provider such as Google or Microsoft is a good example.
• White label – many successful technologies also offer white label solutions. This means selling off their services or leasing their technology for a partner brand. The partner brand then utilises it under its own brand name.
• Product merger – a merger is where both brands have decided to amalgamate (mix) their products together. This too comes in various formats, from full to partial mergers depending on the product line.

• Андре Тан і Катя Осадча. Innovative fabrics made from rice stalks, recycled sugarcane, pineapple leaves and banana branches, as well as cotton and organic linen. This is an example of wedding collaboration. accessories in the style of Kateryna Osadchai (hats and hoops) will also be able to complement the festive wardrobe.

6.2. Joint products directions and types

1. One brand supplying its services or technology to another

A) A tech giant teaming up with a startup

B) Two equal brands joining forces

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6.2. Joint products directions and types

White labelling

With white labelling, a primary brand still utilises a secondary brand’s technology or services.

A really simple example of this is a supermarket’s ‘own brand’ products, like M&S’s ‘Simply M&S’ range.

6.2. Joint products directions and types

3. Brands connecting their products

• Uber's partnership with Spotify: They've linked their apps so Uber users can play Spotify playlists during Uber rides. The collaboration tackled a very real problem (how many times have you ridden in a taxi to music you didn't like?!), while generating a ton of publicity thanks to a joint marketing campaign the pair called "the soundtrack to your ride." '

6.2. Joint products directions and types

4. Undertaking a product extension merger

Facebook paid $1 billion to acquire Instagram in 2012.A few years ago, Microsoft bought out Nokia, and produced Windows-based smartphones (Windows phones). At first they were under TM Nokia, then under TM Microsoft...

• There are four specific forms that have emerged:
• New Product Launch – two firms may decide to launch a brand new product, one that amalgamates both brands under an exciting new concept. Both companies leverage each other’s brand image, reputation, resources, and market reach – as shown in the example below with Apple and Nike who combined to create the ‘The Nike & iPod Sports Kit’.
• Brand leveraging – rather than a full product merger often just the branding is joined. With such product partnerships it is about utilising the partners design and packaging.
• New markets – by partnering products together a popular firm in the US seeking new customers from Europe might collaborate with a successful European brand to enter this new market, and with this the joint product might have to adapt to the new market.
• Sharing costs – occasionally a product partnership will purely be a cost-saving exercise. This is achieved with the sharing of resources and expertise; this in turn reduces cost of production and marketing. For example TМ QVS, UBU.

6.2. Joint products directions and types

6.2. Joint products directions and types

What is the difference between product partnership and co-branding?

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• Marketing is at the heart of co-branding a product.
• On the other hand, a product partnership is primarily an extension of a brand's product.

6.3. Joint products organization

How to start a product partnership?

• Uncover relevant partnership opportunities
• Find the relevant contact
• Reach out
• Persist
• Be honest
• Negotiate
• Celebrate!

• Сергій Притула х Kalush Orchestra х monobank. Пам’ятаєте, що було одразу після перемоги України на Євробаченні? Аукціон, на якому лідер гурту Kalush Orchestra Олег Псюк разом із Сергієм Притулою продали кришталевий кубок переможця «Євробачення» та рожеву панаму Олега. Розіграш панами проходив за допомогою «банки» у monobank, і всього вдалося зібрати 11 млн грн. 

Topic 7. Distribution partnership

7.1. Distribution partnership basic and types

7.2. Bundling

7.3. Cross-marketing

7.4 Reselling

7.5. Co-selling

7.6. Lead account mapping

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7.1 Distribution partnership basic and types

• Distribution partnership is where one partner agrees to cross-market or bundle another partner’s product or services into their own distribution channels to target the agreed customer base.

There are main types of distribution partnership marketing:

Bundling – including your partners offering as an in-box bundle or package insertion, such as giveaways in packaging, promotion within the product itself or online bundle for a purchase such as buy-one-get-one-free.

Cross-marketing – achieving the joint marketing efforts of both products through a distribution channel.

3. Resalling – when a partner buys a product and then sells it to someone else at a markup. Trade intermediaries can be distributors, wholesalers or retailers.

4. Co-selling - in a partnership, the sales teams of the partner companies work together to sell the customer a better solution.

5. Lead account mapping is when partner companies share their data for the benefit of both.

7.1 Distribution partnership basic and types

The more common forms include:

• In-store leaflets
• In-store coupons
• Magazine coupons
• In-store live demonstrations
• In-store TV demonstrations
• Email vouchers
• Mobile coupons
• QR codes

7.2. Bundling

Product bundling is a marketing strategy that enables companies to group complementary products into a single unit and set a lower price than if they were sold individually.

With this strategy, McDonald’s sells its Happy Meals; beauty shops create packages that include shampoos, conditioners and hair masks; hotels offer rooms with breakfast.

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The Microsoft Office 365 package includes the less popular Access, Outlook, and Publisher, as well as the more popular Word, Excel, and Powerpoint. Microsoft customers don't have the option to choose individual products, they pay a flat monthly fee to install all Office products

7.2. Bundling

This technique can increase your company’s average order value, sales, and revenue, save money on promoting and distributing individual products, and enhance customer experience.

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Advantages of Product Bundling:

1. Average order value increase.

2) Sales volume increase.

3) Inventory waste decrease.

4) Saving money on promotion and distribution.

5) Personalized customer experience.

7.2. Bundling

There some types of Product Bundling

1) Pure bundling.

2) Mix and match bundling.

3) Cross-sell bundling.

4) New product bundling.

5) Gift set bundling.

6) BOGO bundling (Buy X Get Y).

7) Old inventory bundling.

8) Occasional bundling.

Product Bundling Tips:

1) Create data-driven bundles.

2) Provide different packages.

3) Inform your clients about savings.

4) Create time-limited bundles.

5) Promote your bundles across various channels.

7.2. Bundling

IHerb, a well-known company that sells dietary supplements and beauty and health products uses grouping on each product page.

https://www.spcdn.org/images/Glossary_GIFs/product-bundling-kyliecosmetics.webm

7.2. Bundling

https://sendpulse.com/support/glossary/product-bundling

3 Wise Men — online store of quality men's clothing

7.3. Cross-marketing

Cross-marketing is the promotion of a company, as well as its goods and services, through advertising campaigns, events, promotions or contests together with partner companies

Advantages of cross-marketing

• Increased brand awareness and recognition. 
• Sales growth. 
• Improved credibility and loyalty. 
• Advertising costs reduction. 
• Expanding the range of goods. 
• Building long-lasting relationships. 

Department store Macy's cross-promoted the nonprofit organization Special Books by Special Kids by posting a video of the nonprofit on its Facebook page. This also coincides with content marketing partnerships, as the cross-promotion here is based on content.

7.3. Cross-marketing

Cross-marketing tools

1) Joint activities.

2) Guest posting.

3) Cross promotions and contests.

4) Copacking.

5) Joint promotional campaigns.

6) Email mailings.

7) Banner advertising.

8) Pop-up windows.

9) Native advertising.

10) Chatbot marketing.

11) Postcards for departure.

12) Demonstrations in the store.

13) Promoting another brand in your digital product.

14) Cross promotion in social networks

7.3. Cross-marketing

Cross-marketing campaign plan:

1. Set your goal
2. Conduct a thorough analysis of your target audience
3. Look for potential partners
4. Conclude an advertising contract
5. Carrying out a cross-campaign and analyzing the result

4.3. Cross-marketing

Amazon together with the financial company American Express released a co-branded payment card to support small businesses in the USA

7.3. Cross-marketing

The international media service Megogo actively uses cross-marketing in its loyalty programs

https://www.spcdn.org/images/Glossary_GIFs/cross-marketing-ru-examples-megogo1.webm

Joint promotion with OKKO: for paying the "Maximum" tariff, users receive a discount on the purchase of fuel.

7.4. Reselling

Reselling is when someone buys a product and then resells it to another customer at a markup.

There are three main forms a reseller can take:

Distributor: This is someone who buys a product from a manufacturer and then sells it on to either a retailer or a wholesaler.

Wholesaler: A wholesaler purchases the product from a distributor and then sells it on to a retailer.

Retailer: The retailer will usually purchase the product from a wholesaler and then sell it directly to a customer via a shop or online.

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TK Maxx is a reseller. The store prides itself on buying discounted or surplus items from top brands, vendors and designers and then passing (some) of those savings onto customers.

7.6. Co-selling

Co-selling, also known as solution selling, is when two sales teams work together to create a more unified experience (or solution!) for the end-user.

There are generally two main kinds of co-selling:

Co-selling in tech or integration partnerships: Usually, two sales reps from separate companies will work together to sell their software to the same customer at the same time.

Co-selling in a channel partnership: Usually, this involves a sales rep from the vendor working together with a sales rep from the reseller to sell a product.

Microsoft created 9,000 partnerships and received $8 billion in affiliate revenue in 2 years

HubSpot has nearly 2,000 sales and co-selling partners

7.7. Lead account mapping

Lead account mapping is when partner companies work together to share their leads.

Each brand will usually identify three types of leads:

• Customers: People who are already paying for their product.
• Opportunities: Potential customers who are already in the company’s sales pipeline.
• Prospects: Potential customers who haven’t yet entered the sales process

The Microsoft Partner Program begins with the use of Lead Account Mapping to identify qualified leads among Microsoft or partner customers.

Topic 8. Shared stores

8.1 Shares store features

8.2. Shares stores advantages

8.3. Shared stores types

8.4. Companies experiences in shared stores development

8.1 Shares store features

• Shared stores (or shop sharing) is where a partner provides an area of agreed space within their own store for the other partner’s brand. The primary brand has rented out, provided or extended their retail outlet to integrate the secondary brand, for additional value to their consumers.

Partnerships with shared stores are becoming more and more common:

• Offline is the most common type of shared store partnership. By offline, we mean the physical world where gas stations, retail outlets, supermarkets and coffee shops bring together shops.
• Online is a relatively new concept, but one that is gaining popularity. On the web, this is where both brands seek to be associated alongside each other by combining parts of their websites with iFraming or creating dedicated sections.

8.1 Shares store features

Offline and online Shared-Store partnership can be further broken down into different forms:Offline:

• Store within a store – the classic form of a shared-store partnership is to provide a section of the primary brand’s retail space for another brand .
• Permanent desk – this is where a primary brand provides a permanent desk for a partner brand. Department stores such as Selfridges or John Lewis often provide areas such this in their cosmetics section.
• Promotional stand – occasionally a store will offer some of their space as a promotional stand. This provides a partner brand with an exclusive area dedicated to their product often manned by the brand’s own personnel

• The collaboration between Cineworld and Starbucks has resulted in Starbucks cafes in 30 Cineworld cinemas across the UK.
• Starbucks was able to fill a gap for Cineworld by adding value to moviegoers.

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8.1 Shares store features

Online:

• Dedicated tab or page – providing a specific tab or page for a partner brand within the primary brand’s website. This provides a dedicated area for added-value.
• Members area – a members area provides exclusive material or content, this is therefore a popular area for partner brands to be featured.
• iFraming – displaying a partners webpage within your own website. iFraming acts as a window that shows a relevant section of their site..

8.2 Shares stores advantages

• Access to new audiences
• Shared resources
• Category or product expansion
• Formation of customer loyalty

Goals: from saving on rent to providing added value to customers and attracting new customers

Red Bull and GoPro

• The most famous example of co-marketing of all time: energy drink manufacturer Red Bull and action camera brand GoPro!
• Stratos is the stunt in which Felix Baumgartner jumped from a helium balloon 24 miles above the ground back in 2012, breaking three world records, breaking the sound barrier, and perhaps most importantly, all captured in real-time on a GoPro camera!
• The video was viewed live by 8 million viewers, and has since been viewed by millions more on Red Bull and GoPro.
• In 2016, the pair reached an agreement whereby Red Bull acquires a stake in GoPro and GoPro becomes Red Bull's exclusive camera and content partner.
• GoPro accesses over 1,800 Red Bull extreme sports events in over 100 countries, showcasing its action cameras. And Red Bull films their daring feats flawlessly to share with the masses.

https://www.youtube.com/watch?time_continue=104&v=dYw4meRWGd4&feature=emb_logo

8.3 Shared stores types

1) Co-marketing

Partnering with another retailer whose customer demographics match yours to run a joint marketing campaign.

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2) Co-sponsored events

This can be anything from an in-store workshop to a collaborative pop-up shop, both of which introduce your customers to a partner.

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3) Shared products

When retailers team up to create new product lines, the incentive for each brand's customer base to shop with a partner becomes even stronger.

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8.4. Companies experiences in shared stores

• Valentino і Alibaba

8.4. Companies experiences in shared stores

• Walmart і BuzzFeed

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8.4. Companies experiences in shared stores

• Home Depot і Pinterest

8.4. Companies experiences in shared stores

• Adidas і Peloton

https://youtu.be/bBwPkw02CNM

8.4. Companies experiences in shared stores

• Target і LEGO

8.4. Companies experiences in shared stores

• BMW & Louis Vuitton

8.4. Companies experiences in shared stores

• Apple & MasterCard

8.4. Companies experiences in shared stores

• UNISEF & Target

Тема 9. Product placement

9.1 Product placement features in partnership marketing

9.2 Product placement development

9.3. The influence of product placement on the brands image

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9.1 Product placement features in partnership marketing

• Product placement is the subtle placement of a brand within a media channel. It might be a cross-over of sponsorship and advertising that works well in partnership with high grossing TV and Film productions.

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The main ways in which products are placed within the media:

• Background placement.
• Visible foreground placement.
• Direct mention or usage.
• Inclusion in the plot

9.1 Product placement features in partnership marketing

• For example, a hat for Elizabeth II from a Ukrainian designer

9.1 Product placement features in partnership marketing

Advantages of product placement

• It demonstrates how a brand’s products can be used in real-life, showing the consumption situation.
• It can become viral and circulate in the information space for a long time. If the film or video is successful, they will be shown on TV and discussed on the Internet for years, and lots of people will see the product placement.
• It affects the subconscious. People might not notice that they watch an ad. However, they associate the product they see in the film with the characters that use it. If they like the heroes, they become more loyal to the promoted brand.
• It is well remembered. Branded products are integrated into the whole picture, and even if people do not notice an ad, they remember the moment of the film, and the product stands out brightly.
• It does not irritate the viewers and does not cause banner blindness. Product placements are much more engaging and interesting for potential customers.

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Nike presented the actor from "Back to the Future" with sneakers that can be laced up - https://espreso.tv/news/2015/10/22/nike_podaruvala_aktorovi_z_quotnazad_u_maybutnyequot_krosivky_yaki_vmiyut_shnuruvatysya

9.1 Product placement features in partnership marketing

Once a brand has established a relationship with an agency acting on their behalf or in collaboration directly with a TV studio or film production company, placement can take the following forms:

• Logo within frame or scene
• Direct mention or usage
• Inclusion in plot
• Background placement
• Visible foreground placement
• Celebrity endorsement

9.2 Product placement development

• A painting by Edouard Manet (1881-1882) shows a bar at the Folies Bergère with distinctive bottles placed at either end of the counter.

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• The beer bottle is immediately recognisable as Bass beer.

9.2 Product placement development

• Then product placement appeared in cinema.
• Popeye the sailor was invented in 1929. The story of how spinach magically increased his strength led to a 30% increase in the consumption of canned spinach throughout the United States.
• For Spinach Can (Chester, IL), a manufacturer of canned spinach, these cartoons provided significant support, and Product Placement became a major advertising medium

9.2 Product placement development

• The idea of ​​Product Placement was successfully continued by the producer of the series about the agent 007, Albert Broccoli, raising it to a qualitatively new level.
• Having started advertising vodka and cars in "Dr. No" of 1962, later competently inserted into the films advertising of a large department store and a dairy company, as well as a lot of other brands.

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9.2 Product placement development

• Claude Lelouch's 1966 film A Man and a Woman features a Ford Mustang for almost the entire film, considered to be one of the most interesting examples of car product placement in film history.
• In Steven Spielberg's film "The Alien" (ET) in 1982, Reese's Pieces from the Hershey's company appeared. In the film, the children prepared a "sweet pizza" according to their recipe and E.T. could not resist such a temptation. After the release of the picture, Reese's Pieces entered the "dream menu" of American children as an invariable attribute. The manufacturer's sales soared by 65%.
• Jack Daniel's whiskey company paid more than $1 million for a scene in the 1992 film Basic Instinct in which Nick offers Catherine a drink of the brand's whiskey. After this promotion, the sales of Jack Daniels increased 5 times
• Recently, the production of short commercials (online commercials) posted on the Internet has become widespread. The main differences between these commercials and traditional commercials are their long duration, limited access, and the highest quality of the promotional product (for example, the two-minute Chanel No. 5 perfume commercial from 2004 based on the film Moulin Rouge, shot by the same director)

9.3 The influence of product placement on the brands image

• Apple has said it doesn't want its movie technology to be used by thieves. Since then, we often see a positive protagonist and famous logos in the same frame.
• Brand exposure can create a stronger connection with your audience.

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• Reverse product placement is less common - the introduction of a fictional brand from a work of art to real life.
• For example, the Ratatouille 2004 wine appeared on the American market in 2007. This wine brand was named after the rat Remy from the cartoon Ratatouille.

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9.3 The influence of product placement on the brands image

• Often someone returns from the airport and brings Tableron

9.3 The influence of product placement on the brands image

• Cookies according to an old French recipe, which her grandmother made for her when she was a child

Вescription of the target audience: Her dream is to live in a country house, and when she bakes these cookies, the children will take them outside. And all the other kids around will know that Monica makes the best cookies in the world. The brand wants to broadcast — treat your kids and their friends to cookies and they'll think you're the best mom ever.

9.3 The influence of product placement on the brands image

• Nike appears in Friends.

Nike can be seen in such films as "Creed", "The Perfect Voice 2" and "Jurassic World".

9.3 The influence of product placement on the brands image

• The movie "Creed" tells about the life of the boxer Adonis Creed, who was played by the American actor Michael B. Jordan. The Nike logo appears in the film more than 100 times on various clothing items: t-shirts, sweatpants, hoodies. And the athlete wears retro Air Jordan sneakers.

9.3 The influence of product placement on the brands image

• In the movie "The Island", one of the first frames stops at the Puma shoes worn by the inhabitants of the island. And one sneaker, which is missing, belongs to the main character - Lincoln Six-Echo.

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https://youtu.be/fA__8hYgPmk

9.3 The influence of product placement on the brands image

• In the film "Shulga", which tells the story of a professional boxer, we constantly see Adidas.
• The main character Billy Hope wears shorts, a suit and sneakers of this brand. And one of the shots even shows that his headphones are also from Adidas

Product placement examples

Ray-Ban glassesIn

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Top Gun, Tom Cruise's character serves in the US Air Force and looks adorable in his Ray-Ban glasses. After this movie, sales of the brand soared, and a huge number of young people fell into the ranks of the US Army to be as cool as Tom.

Product placement examples

Aston Martin cars

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In the James Bond super-spy franchise, the tech-packed Aston Martin is a staple.

In each new film about agent 007, the creators show a new model.In addition, many other brands have been seen in the films of this series, such as Camel, Playboy, KFC, 7Up and Toblerone.

Product placement examples

Coca-Cola

In the legendary film Blade Runner, a future is depicted, in which advertising for a famous drink is shown on giant screens. The main message is "Coca-Cola will be here in a hundred years."

Topic 10. Partnership loyalty programs

• 10.1. Loyalty programs feature in partnership marketing
• 10.2 Loyalty types in partnership marketing
• 10.3. Value creation for customers
• 10.4. Companies experience in partnership loyalty programs

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10.1. Loyalty programs feature in partnership marketing

• An incentive marketing partnership is when a company incentivises specific customer behaviour with offers for partner brands.

A popular kind of incentive marketing is loyalty marketing, where brands work together to reward (and therefore incentivise) loyalty.

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Objectives achieved

• By rewarding customers for completing certain actions, the primary brand is able to incentivise certain customer behaviours, boosting retention, revenue or (depending on the setup) referral.
• By getting its products and offers featured, the secondary company is able to boost awareness, acquisition and activation.

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10.1. Loyalty programs feature in partnership marketing

An incentive marketing partnership works in much the same way.

• The difference is that instead of customers having to return to the same brand in order to use their reward, the brand teams up with a partner to reward the customer.

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• Some of the rewards that could be offered in a loyalty or incentive marketing partnership include:
• Vouchers
• Discount codes
• Club card points
• Product extensions
• Cashback

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10.1. Loyalty programs feature in partnership marketing

What gets measured?

• the customer behavior they are trying to stimulate;
• if you reward expensive purchases - has the average purchase price increased and by how much;
• if you reward customers who make frequent purchases - has the retention rate increased;
• for a secondary brand - how many leads you get from the promotion, and the conversion rate of those leads

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10.1. Loyalty programs feature in partnership marketing

• The goal of most existing affiliate programs: to create more value for the most frequent customers.
• For airlines and hotel groups, frequent customers are business travelers, so their partner mixes are heavily biased towards other travel brands

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• Regular customers
• The next 40-60% – also known as the “medium-long tail” – are already familiar with your brand; they just need the right incentives to give you a bigger share of the wallet.
• They need partners for day-to-day expenses such as convenience stores, coffee shops, pharmacies and grocery stores, or companies that consistently make a profit, such as utilities, telecommunications companies or even housing providers.

10.2 Loyalty types in partnership marketing

Loyalty partnership marketing comes in three specific types. All of which relate to how consumers are loyal to a brand:

• Frequency – loyalty can be rewarded based on frequency of customer use; the more a product is bought or a service used the more rewards a consumer receives.
• Volume – the alternative is to reward based on amount purchased; where the higher the number bought the larger the reward.
• Advocate – the third type is often described as advocacy; where a consumer is so loyal to a brand they will support it and promote it, with this a brand will offer extended rewards.

A brand can encourage consumer loyalty in:

• Loyalty club/scheme
• Loyalty cards/vouchers
• One-off rewards
• Free money, gifts, raffles
• Seasonal promotions
• Product extensions

10.2 Loyalty types in partnership marketing

There are several basic types of loyalty programs:

• discount,
• accumulation programs,
• closed club,
• co-branding,
• non-standard loyalty programs - with a focus on charity.

10.3. Value creation for customers

10.3. Value creation for customers

Partners in different categories also create value for each other’s businesses, by enabling complementary forms of customer engagement.

• ‘Earn’ partners – traditionally gas station chains, grocery stores, sandwich shops, and credit cards – create customer frequency in the program, because they’re categories where people spend weekly or daily.
• ‘Burn’ partners – providers of aspirational experiences, such as travel, restaurants and entertainment – are the bait that draws people to participate in the program.

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Everybody’s CPA (cost per action) falls, because your partners’ customers become exposed to your brand when they participate across the network.

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10.3. Value creation for customers

The problem with the "classic" set of loyalty partnerships

• The trouble is, there are plenty of potentially frequent customers who don’t really care about luxury hotels or flight upgrades. There are also plenty who don’t drive a car, or who don’t use a premium credit card.

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Potential groups:

• Young travelers: who avoid spending anything in luxury categories, precisely so they can afford to visit more places per year.
• New parents: who may have a healthy income, but who won’t go anywhere (other than to visit family) until their children are a couple of years old.
• Up-and-coming professionals: high-performing students, or recent graduates who aren’t wealthy yet, but who will be earning large pay checks in four or five years and will probably end up joining a lot of different loyalty programs.

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10.3. Value creation for customers

10.3. Value creation for customers

Untapped insight in your customer base

• The most well-known examples of co-creating value is Bank of America's "Financial IQ" campaign, which was designed to identify future valuable customers among high school students.
• In one iteration of the campaign, in 2008, the bank hosted a "Be Money on Campus" contest, in which students competed to offer the most helpful financial advice to their peers, with $25,000 in cash prizes.
• By asking the students to mentor each other, the bank learned what information it could provide to young people to attract and retain their business.

10.3. Value creation for customers

• Co-creation via your loyalty partnerships
• A "classic" example is the fuel x airline relationship: if someone puts premium fuel in their car, you can reasonably say that they are more likely to buy a business class or first class ticket or respond favorably to the offer renewal.
• In this way, the two brands can jointly create offers aimed at accelerating the identification of these customers. In a hypothetical offer for April, people who buy $200 worth of premium fuel could earn 2,000 bonus points on their preferred airline.

10.4. Companies experience in partnership loyalty programs

Nike x Spotify

• In 2015, it became possible to hook up your Spotify account to Nike’s running app. For the launch campaign, customers were encouraged to create a running playlist and were rewarded with a free, week-long trial of Spotify premium

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Cooperation helps to understand:

• knowing how often people run and for how long (which might help you calculate when someone might be ready to buy a new pair of sneakers);
• knowing which music customers like to listen to when they run (enabling relevant song suggestions of a similar tempo and style).

10.4. Companies experience in partnership loyalty programs

Three x ЕasyJet

• Three, a British telecommunications company, has partnered with EasyJet to target young weekend travellers.
• Three sold a 'Go Roam' package which allowed customers to use their mobile phone packages abroad at no extra charge.

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10.4. Companies experience in partnership loyalty programs

• The administration of the city of New York has issued discount cards, which give visitors the opportunity to use a discount when visiting institutions of the culture and entertainment industry: museums, theaters, cinemas, exhibitions, restaurants, Internet cafes and others.
• If until now the system of discounts was practiced only in the field of business, now it has become a tool of strategic management of the image of the territory. In particular, similar maps are issued by the administration of Frankfurt.

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The "Frankfurt Card" system is a service of the city administration and is presented in two formats: a card for one day (8.00 €) and for two days (12.00 €)

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Maps provide:

• free travel on public transport, including transport to Frankfurt Airport
• 25% discount on regular city tours
• 50% discount in 22 museums
• 20% discount on river tours on Mainvarious discounts in city restaurants, bars, clubs and shops

Topic 11. Licensing and franchising

11.1. Licencing as marketing as partnership

11.2. Features of licensing in Ukraine

11.3. Advantages and disadvantages of licensing

11.4. Licensing in business.

11.5. Franchising

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11.1. Licencing as marketing as partnership

• Licensing is a business arrangement in which one company gives another company permission to manufacture its product using its brand image for an agreed payment or partnership.

11.1. Licencing as marketing as partnership

There are two ways that a brand will choose to collaborate with another when it comes to licensing partnership marketing:

• Sold – most brands that decide to license their brand choose to sell it to their partners for a given price. This provides them access to various assets (described below) to improve their product or service offering.
• Collaborative – some brands decide to get involved in the licensing partnership and actively collaborate with the partner. This has close associations with joint product partnerships where a company may utilise another’s product and brand image to provide an exclusive unique offering

11.1. Licencing as marketing as partnership

After purchasing the right to use their brand they can work on the following:

• Logo – the logo of another brand can be used within a company’s own product line to enhance it.
• Brand image – the brand image itself can comprise not only the logo but the colours, font and tone of voice.
• Reputation – with the purchase of any brand comes with it its reputation; utilising this to a company’s advantage in their new product offering.
• Culture – with a brand’s reputation also comes its company culture. A company can utilise the ethics and company values this also brings.
• Design – the design assets that come with a brand can also be utilised within the firm’s products or services.

11.1. Licencing as marketing as partnership

Objectives achieved

• The licensor boosts its revenue by either selling the licence to another company for a given price, or by collaborating with them and receiving a cut of profits.
• The licensee enhances its product offering, associates itself with a reputable brand or reaches new audiences, boosting awareness, activation and acquisition.

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11.1. Licencing as marketing as partnership

Here are some of the main types of licensing you might come across:

• Product licensing
• Brand licensing

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Depending on the arrangement made, the licensee could adopt the licensor’s:

• Design assets
• Brand colours
• Tone of voice
• Company culture
• Logo

11.2. Features of licensing in Ukraine

Parties to the license agreement:

1) Licensor (patent owner)

2) Licensee (contractor)

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The main forms of license payments are:

• royalties are periodic deductions from the buyer's income during the period of validity of the license agreement, the amount of which is determined depending on the economic results of using the subject of the license (payment of a percentage of profit, turnover, net sales value of licensed products or set per unit of output).
• lump sum payment (паушальний платіж) - One-time (agreement) payment, i.e. one-time payment of a fixed, pre-calculated amount.
• fee - Monetary remuneration for services provided by the licensor, which is assigned in the form of a certain amount

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11.3. Advantages and disadvantages of licensing

Advantages:

1. The profitability of the developer company increases, as it receives profit both from its own use of products and at the expense of one-time payments or royalties from the sale of a license.

2. The developer company has the opportunity to solve technical problems when the demand for products exceeds the volume of its own production, if additional funds are needed for production improvement, if the market situation deteriorates, etc.

3. Time costs for production, management, promotion of products, search for buyers, etc. are reduced at the enterprise.

4. There is an opportunity to enter new markets and sales channels owned by licensees and increase their market share.

5. The company has more opportunities to market innovative products.

6. The possibility to transfer all stages of commercialization, which follow the creation and registration of the ownership of the products, to the licensee.

7. Risk is minimal as most stages are outsourced to other companies.

8. Control remains with the licensor, as it owns the main ownership rights

11.3. Advantages and disadvantages of licensing

Disadvantages:

1. There must be potential buyers of the license.

2. Licensing conditions should be clearly defined and spelled out in the contract to avoid conflicts of interest.

3. Before selling the license, the best terms of cooperation for both parties should be determined.

4. Ownership rights to innovative products must be legally formalized, otherwise they can be lost.

5. The developer enterprise ceases to be a monopoly of innovative products, when innovations are distributed, it is easier for other enterprises to copy and manufacture them.

6. Another mandatory condition is the presence of potential license buyers and the creation of clear license conditions in order to avoid conflict situations and determine the best conditions for cooperation for both parties.

7. Products and technology for their production or use must be formed.

8. Part of the risks remains with the licensor.

9. The enterprise must have the resources to issue a license and must spend time on its production.

11.3. Licensing in business

The Walt Disney Company is the world's largest licensor - a huge number of collections of toys and clothes with Disney characters!

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Gucci is one of the designers that has a licensing agreement with Disney for the production of Donald Duck clothing and accessories.

11.5. Franchising

• Franchising is a very popular form of licensing agreement where the licensor (known as the franchisor in this case!) gives the franchisee permission to use its successful business model and brand.
• The franchisee puts up the initial capital for the business, helps to promote the brand and pays a (usually monthly) fee.
• The franchisor offers support that usually comes in the form of training, marketing resources and more.

What gets measured?

• If you have a licensing agreement that allows you to manufacture another brand’s product, you’ll need to measure sales metrics related to that product
• If you’re selling a new product using the primary brand’s name and logo, try to measure how much more revenue you’ve made by branding the product in this way compared to similar product ranges without branding.
• You’ll need to measure ROI to assess whether your licensing agreement is worth it.

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11.5. Franchising

Advantages:

1. The company's income increases thanks to the sale of the franchise.

2. Franchising allows you to measure market capacity and market needs.

3. The company has the opportunity to quickly enter the market without significant capital expenditures.

4. New enterprises have the opportunity to enter the market under a well-known brand.

5. Innovative products and the developer's brand become popular when the number of franchisees increases. As the number of franchisees increases, so does the market.

6. The company has the opportunity to enter new markets and sales channels, to expand its market share, as it uses the markets and sales channels of new franchisees.

7. Risk is significantly reduced because other organizations are responsible for commercialization.

8. The franchisor remains the owner of the patent.

9. The amount of resources needed by the developer to promote the innovation to the market is reduced: the franchisor is responsible for intangible image assets, and the franchisee provides other resources.

10. The responsibility of the developer is reduced: the franchisor controls aspects of compliance with the terms of the franchise, and the franchisee is responsible both for his own activities and for compliance with the terms of the franchise.

11. Time costs are reduced as commercialization is handled by other organizations.

11.5. Franchising

Disadvantages:

1. The brand of the enterprise must be formed, because the corporate culture and style of the enterprise must be followed and imitated.

2. The product, the technology of its production or use must be formed.

3. Property rights to innovative products must be legally registered

4. Franchise conditions must be clearly defined and spelled out in the contract.

5. There must be enough buyers for innovative products, ready to purchase and work under clearly defined conditions.

6. The enterprise must have enough resources for manufacturing products.

7. As the number of franchisees increases, the level of monopoly and profit decreases.

8. Possible waste of the company's image due to dishonest work of the franchisee.

9. Additional funds and time are required for the production of the franchise.

11.5. Franchising

Examples of franchising in Ukraine:

1. Nash Kray: supermarket chain franchise. More than 240 retail stores operating under the "Nash Kray" brand, which serve more than 5 million customers a month. It is represented in 21 regions of Ukraine and cover more than 150 settlements.

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2. SPAR: one of the first global franchise chains and the largest international association of supermarkets. Since January 2017, the SPAR brand in Ukraine has been developed on a franchise model by the VolWest Group (investment group), which has more than 20 years of successful experience in the implementation of various projects, including in the food retail industry.

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3. Frans.ua: National Ukrainian network of retail outlets and bakeries selling high-quality traditional French pastries. More than 100 institutions throughout Ukraine.

11.5. Franchising

Examples of franchising in Ukraine :

4. Good Beer: a franchise of specialized draft beer stores and pubs. Turnkey business with a payback period of 2-3 months (in season). The network has 190 partners throughout Ukraine.

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5. Aroma Kava: a chain of coffee shops operating in more than 45 cities of Ukraine, which provides a wide selection of coffee drinks, desserts and sandwiches at an affordable price.

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6. Lviv Chocolate Workshop: creation of handmade chocolate products. Today, the Lviv Chocolate Workshop is represented by 49 establishments in 24 cities of Ukraine. The network is also actively developing abroad.

11.5. Franchising

Examples of franchising in Ukraine :

• 7. Tez Tour: one of the most famous and largest travel companies in Eastern Europe. Partner offices are present in almost all major cities of Ukraine.

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• 8. Нова пошта: the leader of the Ukrainian market of logistics and postal transportation. Today, Novaya poshta branches can be found in almost every settlement of the country, and the franchise network is represented by more than 1,100 points.

11.5. Franchising

Examples of franchising in Ukraine :

9. KIMS: the largest network of dry cleaners and laundries in Ukraine. The network includes 86 points (50 owned and 36 franchised). The amount of required investment starts at $80,000.

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10. FORNETTI: in Ukraine, the franchise network is represented by 550 bakeries of various formats, through which 250 thousand kilograms of puff pastries are sold every month.

Тема 12. Partnership ecosystem and other tools of partnersip marketing

• 12.1 Partnership ecosystem
• 12.2. Autsorsing
• 12.3. Joint ventures

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12.1 Partnership ecosystem

• A partner ecosystem is a network of cross-industry partners working together to create solutions.

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The partners that make up a technology ecosystem generally fall into three main categories:

• Distribution partners.
• Marketing partners
• Technology partners

1. Distribution partners - partners that help you to promote and distribute your product:

• Resellers. 
• Bundlers. 
• Co-sellers. 
• White labellers. 
• Managed service providers

12.1 Partnership ecosystem

2. Marketing partners - brands or individuals who help you to promote your product and expand your reach through partner marketing, whether directly or indirectly:

• Vendor management consultants. 
• Referrers. 
• Comparison or listing sites. 
• Certification providers. 
• Industry advocates.

3. Technology partners - partners whose technologies interact with your brand’s technology in some way:

• Joint product partners. 
• App developers or platform extenders. 
• Platform providers. 
• Product integration partners. 
• Verticalisation partners.

12.1 Partnership ecosystem

Google Cloud's partner ecosystem, known as Partner Advantage, brings together thousands of proven partners from a variety of industries around the world who offer Google Cloud-related services and products.

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Many of these partners have also received further approval by passing Google's own certification and becoming "Google Cloud Certified".

12.1 Partnership ecosystem

Apple works with partners who add value to their customers through consulting, system integration, and more.

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However, Apple's mobile app store is a thriving ecosystem in its own right.

12.2 Outsorsing

Outsourcing is when a company chooses to delegate an element of its operations to another company, in order to save time, resources or money – or to gain expertise that can't be found in-house.

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Objectives achieved

• For the primary company, outsourcing can save time, money and resources, increasing revenue. In the case of technology companies, it can also help them to avoid a single point of failure, as demonstrated by Facebook's biggest-ever outage.
• For the secondary company, providing services to the primary company in exchange for money allows them to increase revenue.

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How it works

1. Supply chain partnerships

2. External outsourcing

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12.2 Outsorsing

• 1. Supply chain partnerships – is when two or more companies work together from different parts of a supply chain, allowing a company to outsource the manufacturing of a product.

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Benefits:

For the primary company, outsourcing the manufacturing of a product can save time, money and resources, increasing revenue.

Meanwhile for the secondary company, providing services as part of a supply chain allows them to focus on what they do best – creating a product without worrying about marketing – increasing revenue

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Areas:

in the film industry, where films are often made using the supply chain method;

technological sector

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12.2 Outsorsing

2. External outsourcing - is when a brand delegates operations and tasks to an external partner. When we use the term here, we're talking about outsourcing partnerships that don't involve the manufacturing of a product

• Brands will usually do this because they don’t have the resources or expertise necessary to run this part of their business in-house.

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Popular types of external outsourcing:

technological (where the business outsources technological expertise);

financial (where the business outsources financial or accounting expertise).

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12.2 Outsorsing

What gets measured?

• The primary measurement when it comes to outsourcing is ROI. A successful partnership will cut down on the amount of time and money you have to spend dealing with an aspect of your business in-house, increasing overall profits.
• However, in the case of supply chain partnerships in particular, be sure to measure customer satisfaction rates regularly as well, to make sure you’re not sacrificing on quality. A dip in quality over time will negatively impact retention and acquisition, affecting your revenue

12.2 Outsorsing

• Toyota makes engines for many Lotus cars, enabling Lotus to sell some cars for less and allowing other Lotus cars to pass strict emission laws in the US.
• While an outsourcing partnership isn’t hard to put in place, it takes away an element of control from you as a business owner, which can be a risk. If it’s a simple case of working with an external accountant or teaming up with an IT support company, things aren’t likely to go too far wrong. But when it comes to supply chain partnerships, the risks are greater as they can easily result in a compromise in quality.

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12.3 Joint ventures

A joint venture occurs when two or more companies (known as the parent companies) form a smaller company together (known as the child company).

Objectives achieved

• Both brands remain competitive and share resources, strengthening their offering and therefore boosting acquisition, action and revenue

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How it works

• Joint ventures are the most legally entangling and generally, the messiest of the partnerships we’ve explored, so it’s unsurprising that they’re not a popular choice with smaller companies who don’t have previous partnership experience.

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12.3 Joint ventures

• There are two types of joint venture that partners can choose from:

1. 50/50 joint ventures

• A 50/50 joint venture is when all the parent companies own an equal portion of the child company, giving them all an equal share of risk and responsibility.

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2. Majority-owned ventures

• In a majority-owned venture, one parent company owns more of the child company than the others. For example, there might be one parent company who owns 70% of the child company, and another parent company who owns the remaining 30%.

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A deal for companies that don't want to start a new company is a stock alliance.

For companies to form an equity alliance, one company must purchase a percentage of the other's stock.

12.3 Joint ventures

What gets measured?

• Since joint ventures are based around creating a new company, determining the success of the partnership depends on measuring this company’s success.
• So, when it comes to measuring, all the usual KPIs that you would use to measure a company’s profitability should be recorded, from total revenue to employee turnover, customer service and efficiency

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American streaming platform Hulu was originally created as a joint venture between The Walt Disney Company, News Corporation, Comcast’s NBC Universal and Providence Equity Partners.

Although Disney bought the assets of Fox and WarnerMedia in 2019 to become the majority shareholder, it remains a joint venture, with Comcast still owning about a third of the platform.

Conclutions

• Partnership marketing really accommodates the old proverb that "two heads are better than one" and "we are stronger together than we are alone."

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• While there are many different types of strategic partnerships, and they can be created between very different brands, the trick to working together is to make sure it's a win-win.

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• By sharing the risks as well as the rewards, you need to ensure that both parties are equally invested in maintaining a long-term, healthy and fruitful partnership