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