The core of every business organisation’s mission is to answer customer needs. In order to do so you must first identify and understand them.
Understanding your customers’ needs is essential but superficial knowledge is not enough to ensure your organisation’s profitability. To achieve product/market fit, the point where you answer needs better than your competitors, you must get to a deeper level of understanding of those needs.
Benefits of understanding customer needs
An added bonus to mastering customer needs (and providing a solution that fulfills them) is that every marketing dollar spent will yield higher returns than those of your competitors, who don’t have the same depth of knowledge.
A deeper level of understanding your customers’ needs will also ensure an overall better customer experience, which we already saw in a previous post on the customer experience journey, leads to higher profitability.
Ok, so now that you are convinced understanding customer needs is in your organisation’s best interest, the question you may be asking is how to go about mastering them.
First you have to identify the needs you will be fulfilling (hint; don’t stop at the needs attached directly to your product/service, also look at the ones surrounding the entire customer experience). Once you have zoomed in on the needs to fulfill, you must not only understand the needs but the whole story around them. This process requires lots of effort, time and knowledge of data gathering techniques. It isn’t as straightforward as it may seem.
As a marketer a huge part of my role, aside from finding the right customers, is to identify and understand their needs. Over the years, I learned that there are three steps to any quest aiming to either identify or understand customers’ needs.
Those steps are; Listen, observe, and empathise
The very first thing you should do when you have a business idea is to talk informally with potential customers. This mostly means listen to their answers. It also helps you figure out who your early adopters are. If it’s not possible for you to talk directly to potential customers, find people who know your potential customers inside out, and talk with them.
Don’t forget to set objectives for your conversation. Examples of conversation objectives are; to see whether the needs you think exist actually do, how they are being filled and the relative importance of those needs. In order to maximise the amount of information you take in, not only do you have to limit how much talking you will do, but you need the proper mindset. Your mind should be open and devoid of as many filters as possible. Always remember that explaining your project in length and your view of the world is just taking time away from achieving your goal. Listen.
On a side note, many of the entrepreneurs I meet are worried that someone will steal their idea before they get a chance to develop it. Unless you have a truly patentable solution (very few are), and potential customers can either beat you to market (they already operate a company in the same field) or spill the beans (to an existing competitor), you have nothing to worry about. Honestly, initial business ideas are very rarely marketable. Even if they were, almost no one wants to put in the blood, sweat, tears and go through the hell that starting a new business entails. Furthermore, even if they did, they’d most likely end up with a completely different business than yours in the end. Lastly if the threat of theft is real, there are still ways to explore the needs of potential corporate customers without spilling your own beans.
Please do not let the fear of someone stealing your business idea prevent you from engaging with potential customers.
Observation is essential to identify less obvious needs and understand all pertinent customer needs at a deeper level. Asking potential customers won’t yield the information you seek because people don’t or can’t always tell you the truth.
There are many categories of observation techniques.
Natural observation techniques allow you to observe your potential customers while they are naturally fulfilling the needs you want to address. Ideally, without them noticing you too much so their behaviours are not altered.
Such observation experiments will yield huge amounts of customer knowledge. Hence you need to ensure you set observation goals for your experiments. Your observation goals can pertain not only to your subjects’ actions but also their interactions, environments, and the tools they use.
You will most likely need to repeat such experiments many times to take in all the knowledge you will need. Alternatively, you can task multiple people to observe the same situation while giving them different observation goals.
Two of my favorite natural observation techniques are shadowing and A day in the life.
These techniques are associated with a goal of understanding a specific thought process or behaviour in a given circumstance.
They require putting the customer in a specific situation or assigning him, or her, a task and then observing. This can be followed by a question period to help interpret what you observed. It can be done face to face, remotely with cameras or on the web (such as A/B testing).
Third person observation
This technique is used in addition to one of the previous ones where the observer is someone who has a vision of the world that is significantly different from you or anyone in your industry. This technique yields much richer interpretation/insights from the data you collect.
Whenever possible, put yourself in your customers’ shoes or, even better; take the time to get to know some of your favorite customers personally. This will enable a relationship of trust and maybe even friendship (personal bonus for you) to develop over time.
Get involved in activities or causes your customers are passionate about. This will give you an even deeper understanding of their values and what is important to them.
Sharing your customers’ values is a requirement to attract them into your community. If you are unsure of what I am referring to here, see this previous post on community marketing.
The 360 view of customer needs
Applying all of these techniques to understand your customers’ needs is required to get a 360 degree view of them. Using many different perspectives to master your customers’ needs will yield rich and actionable information. It will also facilitate innovation in your organisation.
Customer Feedback Flow
Striving to understand customer needs is a continuous process. Set up processes and assign resources in your organisation to make it an integral part of your business activities.
These processes can be as simple as a quick questionnaire you send out on a regular basis, or an automatic feedback one, after a certain task is completed. Analytics reports, comments on social medias summaries or a managed (live or online) community feedback or observation reports are all valid continuous feedback processes that can yield precious information on your customers’ needs.
Be aware that this feedback is highly valuable to your organisation, if you act on it. Hence, reward your customers adequately (often a simple thank you is enough) for sharing their thoughts and concerns.
Mastering the understanding of customer needs is no small task. Your rewards for listening, observing and empathising with your customers, will be a tighter product/market fit, greater customer satisfaction and higher profitability.
 Needs are always dependant other factors. E.g. The need for a given medicine will be dependant on experiencing specific symptoms at a level that requires relief and not being allergic or prone to adverse effects to said medicine.
 The following book describes these techniques : This is Service Design Thinking – M. Stickdorn, J. Schneider et al. – John Wiley & Son
It’s the end of the year already. It went by incredibly fast. This is the time to look back and identify what needs to be fixed. It’s also the time to be grateful for all that we were able to achieve.
One of the things I am always very grateful for is the knowledge I gain during the year. Important sources for the knowledge I pick up are the books and articles I read.
I have to admit that I didn’t have as much time to read this year as I got involved in many (maybe too many) projects. I did however manage to read some very good books on marketing, innovation and Lean Startup.
As I did last year, I am sharing with you some of the ones I especially liked.
Best Reads on Marketing
I didn’t keep up with all that is new in marketing this year. It’s nearly impossible to do so. I tuned in to a few webinars that helped me focus my readings.
I read mostly on mobile marketing (various aspects), influencer as well as community marketing. Community marketing is a strategy that isn’t as easy to implement as one might think. Here is a post I wrote on how to find a profitable community marketing partner.
Again this year, I found that my most interesting marketing reads came from blog posts on mainly two sites; eMarketer and HubSpot
Speaking of HubSpot it is one of the case study in Sean Ellis’s book; Growth Engines: Case Studies of How today’s Most Successful Startups Unlock Extraordinary Growth.
Through ten case studies, including Yelp, Uber, LinkedIn and HubSpot, Ellis explains the different types of growth engines and the contexts in which they worked best for those companies.
Although I read Growth Engines to better understand a concept that is integral to Lean Startup, this book offers some very valuable marketing lessons. It also touches on growth hacking, a term coined by Ellis. It inspired me to write a post on what growth hacking is and isn’t.
Another book that I thoroughly enjoyed was UX Strategy by Jamie Levy. Having been a Product Manager at a time where UX was but one part of the job description, it was great to delve into the depths of UX strategy.
Whether you are starting a new venture to create the killer app, or trying to innovate in an existing small, medium or large business, this book is a must read before you start. It can help you define a winning value proposition. It also guides yourr competitive analysis and helps you see which features you need to focus on.
The book is an easy read and doesn’t require any prior knowledge on UX design or app development.
Best Reads on Innovation
I was invited to a university workshop on blockchain earlier this year. Given I knew nothing on the topic I figured that it would be a great opportunity to learn. Montreal, where Baker Marketing is located, is a hotbed for blockchain research and development. The workshop did teach me the basics of blockchain but left me wanting to know more (a lot more, this is exciting stuff and definitely a game changer) about how this new technology could be used.
One of the researcher at the workshop suggested Blockchain Revolution: How the Technology behind Bitcoin is Changing Money, Business and the World, by Don and Alex Tapscott. It was exactly what this non scientific reader needed. The Tapscotts explain the concept in very simple terms. They also explore a large number of applications for blockchain. They clearly show how significant a game changer this technology could be.
In Spring I also contributed to the organisation of the Montreal edition of the Intrapreneurship Conference.
During the conference one of the keynote speakers was Guillaume Hervé. Hervé is a veteran practitioner of intrapreneurship. He contributed to several corporate spinoffs in the aeronautics and health sectors. In case you are not familiar with the term, intrapreneurship is entrepreneurship adapted to large enterprise.
Intrapreneurship is however not the same as entrepreneurship. These differences are the focus of Hervé’s book Winning at Intrapreneurship: 12 Labors to Overcome Corporate Culture and Achieve Startup Success.
Based on the 12 labors of Hercules, Winning at Intrapreneurship looks at the traps, pitfalls and myths of innovating in large businesses. Hervé saw them all in his career as an intrapreneur. He shares with us some tricks of the trade on how to avoid and debunk them. You can read more on this topic on the post I wrote titled Entrepreneurs as Corporate Innovators.
Best reads on Lean Startup
Continuing on the innovation in large business topic, Eric Ries published a second book this year. It’s titled the Leader’s Guide to Adopting Lean Startup at Scale.
First, Eric innovated in the way he published the book. He financed the book with a Kickstarter campaign. The backers were invited to join the Leader’s Guide community (managed by Mightybell). He used the community to test hypotheses about the content and cover of his book. Yep, he did it the Lean Startup way.
Unfortunately however, Eric only printed as many books as there were backers who pledged the sufficient amount. It isn’t available anywhere for purchase now that the Kickstarter campaign is over. You can however get a free digital copy if you know someone who invested in the campaign.
The Leader’s Guide is based on Eric’s experience (as well as that of some backers) on implementing Lean Startup in large corporations, like GE, and government organisations (like the White House).
I especially like the format of the book. Symbols are used in the margins throughout the chapters in order to quickly understand what the text pertains to. The coach’s Guide sections, for example, are about tips and subtleties in implementing the concepts.
It’s truly a guide that you will go to when implementing a Lean Startup approach to a large organisation.
Eric also announced that he will be publishing a third book next year. It’s tentative title is The Startup Way.
We were lucky to have another great Lean Startup practitioner write his second book this year. Ash Maurya penned Scaling Lean: Mastering the Key Metrics for Startup Growth.
As a follow up to his first book, Running Lean, Ash is now looking at how to use metrics to scale your business once you have found the elusive product/market fit.
His rigorous approach to using key metrics to track your progress and focus your efforts has shown great results in many successful startups.
Finally, I want to mention a website whose author consistently publishes great Lean Startup material. Tristan Kromer’s Grasshopper Herder is chalk full of Lean Startup ideas, tools and resources. Tristan was until recently one of the organisers of the San Francisco Lean Startup Circle.
If you are starting a new project and interested in putting Lean Startup into practice take a look at the series of posts on implementing Lean Startup. It is meant to guide you along your journey when you first start your project.
This concludes this year’s crop of my best reads on marketing, innovation and Lean Startup. Maybe some of them will become your favorites.
Thank you for taking the time to read Techno Marketing this year. I hope you take some time off during the holidays to rest and replenish, as we will.
Baker Marketing offers you its best wishes for the holidays. May 2017 be filled with health, serenity and lots of successful projects.
In a previous post we looked at community marketing. As a reminder, community marketing is a set of tactics used to involve your customers and/or prospect customers (subsets or all of them) and their network with your organisation.
Community Marketing Partnerships
One of the foundations of community marketing is partnering with other organisations. These partnerships are used to leverage all of your marketing and promotional activities to your potential customers. These partnerships can be with your suppliers, clients, customers (either corporate customers or the companies your customers own), or non-profit organisations.
The previous post also showed that, aside from being profitable when done right, community marketing is a great way to:
- Increase positive brand association
- Achieve community leadership
- Obtain great insights in your customers needs
- Drive innovation
- Reduce your marketing costs
- Get free advertising
- Get you and your team to feel great about your job
So yes, community marketing sounds great, well on paper at least. In reality it requires the right partners in order to achieve a return on your investments.
The question then becomes:
How do I know what the right community marketing partner looks like?
Like any other business partnership, there is no ‘’one-size fits all’’ answer to this question. Furthermore, time can transform an excellent community marketing partner into a negative ROI partner. Hence keeping track of the costs, revenues and benefits associated with a partnership is essential.
In order to identify criteria to help find a good community marketing partner for your company I will use two sources. The first are the studies done by non profit organisations that have applied community marketing strategies for decades to achieve their objectives. The second will be the various community marketing experiences I have been a part of or observed in the last few years.
The following are some of the most important elements you have to look for when searching for a community marketing partner.
This criterion is by far the most important element to look for when searching for a new community marketing partner.
Your most important corporate values must be shared with your partners. Otherwise something will inevitably go very wrong during the course of your partnership. Usually, issues will occur sooner rather than later.
An example of this was a large food blog that strongly valued leaving the smallest carbon footprint possible. Most of their blog posts transpired this value. Their hosting provider, a community marketing partner of the blog, expanded into a new facility that used significantly more energy than the previous one they were located in. When the hosting company announced on social media it had no intention to undertake any projects to minimize their carbon footprint, it created a strong backlash in the blog readers’ community. Readership dropped more than 25% in the following 3 months. No other events could account for this exodus.
Eventually the blog owners not only lost a community partner but had to find another hosting provider. This project was of course very costly and could have been avoided had the hosting partner shared similar values.
This example brings about another lesson that was learned. Some of your values can generate a significantly higher cost structure for your company. Make certain you are ready to take on those costs before trumpeting your values to your customers.
A committed partner
Just as any other type of partnership, your partner must be committed to the relationship. In a community marketing partner, this translates into having resources dedicated to managing the partnership and the joint projects.
Partners who also dedicate resources to measuring the outcomes of the partnership will often be easier to work with. The data they accumulated will generally lead to rational discussions with clear demands.
You are going after the same customer segments
The closer, the match between the customers your business is aiming at to the ones your partners aim at, the better.
The whole idea of community marketing is to gain greater exposure, at a lower cost, to new potential customers. Hence, it would be worthless in that regard to partner with companies that don’t address your target markets.
Also, the closer or more complementary the needs they address to the ones you do in your markets, the better the synergy you will get out of a partnership.
Hence, if your product/service fills a need that is created by a partner’s product/service or creates a need that can be fulfilled by a partner, the partnership has the potential to provide maximum ROI.
An example for our food blog would be to partner with kitchen appliances or dinnerware companies as well as exercise/health related blogs that share similar values.
A reputation that is at least as good as yours
Community marketing is strongly based on social media presence by the partners. Hence, you will be looking for a partner that is not only adept at managing its own social media presence but one that has a reputation that will not tarnish yours.
Before signing with a new community marketing partner you need to do a thorough review of all of its social media presence. You also need to know who its other partners are and what their reputation is. The stronger the community your future partner is a part of, the more profitable the partnership can be.
There are many other criteria that are important when choosing a community marketing partner. The previous three are, in my experience, some of the most important ones at the outset of a relationship.
In a future post, we’ll take a look at where to find the best community marketing partners. In the meantime, if you have any questions about community marketing strategy or implementation you are welcome to contact us.
Ils deviennent omniprésents dans notre quotidien. Les objets connectés se retrouvent sous forme de gadgets telle la bouteille d’eau intelligente. De façon encore plus fréquente sous forme de bracelets ou maillots de sport qui gardent le compte de nos activités physiques et de notre rythme cardiaque. Leur point commun; ils amassent une masse grandissante de données sur différents aspects de notre quotidien et les transmettent à un serveur.
D’ici 2020, on peut s’attendre à ce que plus de 20 milliards d’objets connectés soient en circulation. Ils généreront des pétaoctets de données ayant la capacité de tracer un portrait de chaque minute de notre quotidien. Dans leur ensemble, l’analyse de ces données révélera des informations qui permettront aux fabricants d’optimiser leurs produits. Ce qui fait saliver les analystes marketing encore plus abondamment par contre est l’analyse au niveau de l’individu de ces données.
Nombreux analystes, dont ceux de McKinsey, évoquent une 4ième révolution industrielle. Ils prévoient une société où tous les produits et services vendus seront personnalisés afin de répondre aux besoins de chaque consommateur. Ce qui implique que le marketing de masse se fera au niveau de l’individu et non d’un segment.
Le message sera personnalisé en fonction du profil de l’individu, de son environnement, du contexte voir même du moment. De toute évidence, il ne sera pas créé par un humain puisque nous n’avons pas la capacité d’assimiler et de traiter une telle quantité de données à la vitesse requise. En ce qui a trait aux divers modes de livraison des messages publicitaires, je vous laisse les imaginer.
En poussant cet exercice de prospective à sa limite on peut même en arriver à la conclusion qu’une intelligence artificielle filtrera les messages publicitaires et ne laissera passer que ceux qui correspondent à nos besoins et désirs conscients voir même inconscients.
Revenons du monde de la science fiction et regardons comment nous effectuons le marketing des objets connectés aujourd’hui en examinant les stratégies du bracelet Fitbit et du thermostat intelligent d’Alphabet (Google), le Nest.
On pourrait penser que Google, champion du big data, serait avant-gardiste dans la commercialisation du Nest. En fait, il n’en est rien. Alphabet a embauché en 2013 Doug Sweeny, ancien VP marketing de Levis (les jeans), afin de commercialiser le Nest. Non seulement Sweeny ne veut-il pas exploiter les données d’utilisation amassées par Nest dans sa stratégie marketing il opte pour une stratégie des plus traditionnelles pour un produit de grande consommation. Nest focalise depuis les dernières années, quasi uniquement, à croître son réseau de distribution physique (et non en ligne). Nest fait peu de publicité dans les médias et n’a aucune stratégie de marketing personalisé.
Quant à Fitbit, cotée en bourse depuis 2015, sa stratégie marketing est beaucoup plus évoluée et exploite, bien que de manière limitée, les données amassées par ses utilisateurs.
Fitbit utilise ses données pour développer sa gamme de produits qui compte près d’une dizaine de bracelets. Fitbit déploie également des campagnes marketing hautement personnalisées en adaptant le contenu de chaque courriel qu’elle envoie à ses millions de clients.
De plus, Fitbit inclut dans sa stratégie le marketing communautaire. Outre sa communauté Facebook principale, avec près de 1.5 million de j’aime, Fitbit anime également des communautés pour chacun de ses produits sur de multiples plateformes de médias sociaux. Fitbit commandite aussi de nombreux événements sportifs et créé du contenu numérique destiné à être rediffusé par ses utilisateurs.
Il y a plusieurs autres stratégies marketing particulièrement bien adaptées pour le marketing des objets connectés tel le marketing prédictif, le marketing en temps réel et le co-marketing qui ne sont encore que peu ou pas utilisées dans ce secteur.
Les principaux freins au déploiement de stratégies marketing plus avant-gardistes par les fabricants d’objets connectés sont :
- La perception des consommateurs de l’utilisation de leurs données à des fins de commercialisation
- La convergence requise des compétences statistique, informatique, analytique, psychologique, sociologique et marketing
- L’Absence de formation des analystes marketing dans les stratégies de commercialisation utilisant les données de masse (big data)
- Le coût élevé des infrastructures et applications nécessaires à l’analyse de la modélisation des données
Les trois derniers freins expliquent également pourquoi les fabricants d’objets connectés utilisent principalement des fournisseurs externes pour analyser les données et développer leurs stratégies marketing.
Il est évident que le marketing des objets connectés en est encore qu’à ses balbutiements. À défaut d’une innovation de rupture dans le domaine, il faudra attendre de nombreuses années encore avant de voir le marketing des objets connectés se différencier substantiellement du marketing courant.
It is this time of the year. The time when we reflect on what we accomplished during last 12 months. What we did well and what we need to improve upon. It is also the time to consolidate our learnings for the year. One of the ways I circle back on my learnings for the year is to make a compilation of the books I read throughout the year and my best business reads list for the year.
I consider myself very lucky. My work requires me to not only keep up with what is going on in my field but keep ahead of the curve. Hence I need to read an average of probably 20-25 hours a week and I love it.
The one thing I noticed this year is that the marketing books I read were not my best sources of information to keep ahead of the marketing curve. Marketing is moving at the speed of light these days and the published book format is not well suited to keep you abreast of what is on and ahead of the curve. It is still however a great format to do a deep dive on a given topic.
Hence most of the marketing information I used to write my blog posts came from blogs or webzines. Therefore I will focus on my favorite cutting edge marketing information web sources for this year’s review.
As they are an inherent part of the services I offer to my customers I must also keep up on innovation and Lean Startup literature. I read many really great books on these two topics this year. It was hard to pick just a few for this review. Here are my best business reads for 2015.
This site is designed to draw in affiliates. Hence the information is tailored for marketing consultants. Hubspot picks up quickly on new trends and is therefore an excellent source of information to keep on top of the curve marketing-wise.
eMarketer is a great source of market data. It also has some excellent white papers that draw a very clear picture of digital marketing, media and commerce. I especially like that they have extensive data on Canada and even some on Quebec.
The articles in the Chief Content Officer magazine are dedicated to content marketing which is an ever inclusive field. The articles are often in-depth and of excellent quality.
Honorable mention goes to the Harvard Business Review (HBR). Although it isn’t specifically a marketing magazine, their marketing articles are truly well researched and written by some of the most brilliant American marketing minds.
Many of my blog posts, including 3 Digital Makreting Hurdles, Me Inc, Influencer marketing, retargeting, community marketing and co-marketing were all inspired and researched using at least one of these sources.
The very best book on innovation I read this year, hands down, is How to Fly a Horse by Kevin Ashton. Using examples of true disruptive innovations over the last century, Ashton explains not only the process of creating a disruptive innovation but its required environment as well. It inspired me to write an entire series of post on creativity and innovation, creativity stimuli, creativity killers and how to foster innovation in large corporations. The posts on this blog are in French but I translated the first one on Medium. The others will follow in the New Year.
Although not on innovation per se, Mindset: The new psychology of success written by psychologist Carol Dweck is a fantastic book that will help marketers, innovators and entrepreneurs foster an attitude that will, along with hard work, lead them to success. It was recommended to me by a colleague and I since recommended the book to a few friends and acquaintances. Most of them said it was one of, or the best, and most useful book they read in a long time.
Dozens of Lean Startup related books covering topics from management, finance, marketing, corporate culture, analytics, product management and others came out in 2015. There were too many to read. Amazon’s list of Lean Startup related books to be published in 2016 makes me think that all the Lean Startup related books written in 2015 will only amount to a fraction of what is coming next year. Erie Ries himself (Lean Startup author) will be publishing a second book called The Leaders’ Guide, in 2016.
I was even inspired myself this year to create some Lean Startup content. I shared with my readers the Marketing Minimum Viable Plan (Marketing MVP) in a series of 3 posts (part 1, part 2 and part 3).
Three of the books based on Lean Startup principles that stood out from the others for me were the following.
The Lean Product Playbook: How to innovate with Minimum Viable Products and Rapid Customer Feedback from Dan Olsen is one of them. It will help anyone developing a new product figure out how to apply Lean Startup principles and minimize commercialisation risks for their specific situation. It is well written and has loads of pertinent examples to facilitate comprehension of various concepts. It inspired me to write a post on product/market fit.
Lean Enterprise: How corporations can innovate like start-ups by Trevor Owen is another book that stood out. Based in large part on Christensen’s Innovator’s Dilemma, it clearly shows the barriers to innovation in large corporations. It also talks about the concept of innovation colonies and many of the practical aspects of setting up innovation friendly environments in large businesses.
Finally Lean B2B: Build Products Businesses Want by Etienne Garbugli is a comprehensive look at developing B2B products using Lean Startup principles. It takes a practical, hands-on approach which shows you step by step how Lean Startup product management is done in a B2B environment. It is the only book on Lean Startup I read that uses a layout and techniques one usually finds in textbooks to facilitate comprehension.
This rounds up my list of best business reads for 2015.
Thank you for having taken the time to read the TechnoMarketing blog this year.
I would like to wish you and yours happy holidays and a healthy and fruitful 2016.
In today’s business environment where product complexity is increasing, one to one marketing and globalisation are often becoming a must, going at it by yourself is scary at best and impossible at worst. In such a context co-marketing can make a lot of $en$e.
What is co-marketing?
Co-marketing is as encompassing a term as marketing is. If you’re not sure what the marketing function encompasses, a good, but in my opinion still not fully complete, illustration of a marketing framework can be found here. Marketing spans from identifying the customers you will be serving and their needs all the way to managing the customer touch points at the end of your product’s life cycle. Co-marketing is then defined as executing any of the multitudes of marketing activities in between, in collaboration with one or many other organisations.
Co-marketing agreements can take almost any form. It can include a co-branding agreement or not. It can involve a monetary compensation or an exchange of services, resources and/or know-how. There is no set formula. Very successful co-marketing agreements can even lead to the merger of the partners.
When does co-marketing make sense?
I’m seeing it more frequently with Internet of Things (IoT) start-ups and companies. They are often initiated by tech entrepreneurs who know a lot about technology but not so much about design and the distribution channels of their end products. You can choose to acquire all this knowledge in-house but it will take time and a lot of resources to do so. An example of product complexity would be smart wearables. To create a biometric type garment, you need IT engineers, fabric engineers, health scientists, big data analysts, fashion designers and marketers. These talents often don’t speak the same language and evolve in very different work cultures. Combining all of them under one roof can pose not only recruiting challenges, but management issues that are often too great for many companies to overcome especially in the beginning.
Going after many markets at once
If you offer a service or a digital product, selling in multiple markets early on in your business can be done. If you are offering a physical product and you need to be in as many markets worldwide as you can in a short time span (usually because you have a highly innovative or cutting edge technological product that can be copied relatively easily) then going at it by yourself, when you are small is impossible. Reaching out to other organisations that already have deep knowledge of the markets you are targeting is sometimes the only alternative to reaching new markets in time.
Growing your suppliers and key partners network
Co-marketing can also lead to finding new suppliers and key partners. When partnering with a company that has similar value to yours, you may find that you can also grow your (and your new partner’s) network of suppliers and key partners more easily. You and your partner may also look into signing joint purchasing agreements to increase your purchasing power with common suppliers. Joint purchasing power can also mean finding suppliers that are willing to manufacture inputs that are more suited to your products.
There are many other situations where co-marketing makes sense. When you find a, or a few, co-marketing partners, the opportunities will present themselves to you.
A great example of co-marketing partnership is the one between OM Signal, which commercialises smart fitness clothing and the world renowned fashion house Ralph Lauren. In this partnership, OM Signal gained access to fashion design and fashion marketing know-how, potential access to markets worldwide, as well as to great media visibility. In return, Ralph Lauren gained access to expertise in smart wearables and complex technological and big data know-how in a very short time span and at a significant lesser cost than developing it in-house.
In a future post we will look at ways to find a co-marketing partner and how manage the relationship.