When are two franchises better than one? When they market their services together! Franchisees often go it alone when it comes to marketing their businesses and sometimes feeling limited by approved or suggested methods from the franchisor. Building a marketing plan, funding, acquiring the target list to promote to, and implementing can take a great amount of effort, time and money. What if there was a way to leverage resources to increase the results from these efforts. Building and implementing a marketing plan with another franchisee, from the same franchise or from another franchise, in an effort known as joint marketing may be the right boost to your marketing strategy, especially under difficult economic times.

       What is joint marketing? This is when two or more businesses work together, develop and implement a marketing plan together. The joint marketing will leverage their efforts, reduce their costs, and improve their return on their investment. This happens because two, or more, businesses can accomplish more together than on their own. This is truly a case of the sum of the parts being greater than the whole.

       The joint marketing may benefit from the leveraging of various resources including selling products together, sharing distribution channels, developing an offering which supports each franchisee’s efforts, combining knowledge, expertise or intellectual property. Just be careful with the intellectual property, and other contractual limitations, and review your agreements with the franchisor. The design, development and implementation of a strategy utilizing joint marketing should result in an increase in value to both, or all, companies participating. Otherwise, don’t do it.

       Some of the benefits include a reduction in expenses. To advertise or market your services alone, would cause the full cost to be borne by that one company. Gaining access to the other company’s client base or prospect list provides potential new customers. Joint marketing could be as simple as telling the same customer or prospect base that you and the other company are offering compatible products which can be obtained more easily by the company.

       For example both a pharmacy and a coffee shop, in the same mall, may have drive through windows. There is some greater value to certain customers and prospects to know that they could benefit from the convenience of picking up their prescriptions and a cup of coffee at the same time and not having to leave their car to do so.

       Another example, a real estate agent and a mortgage broker working together and advertising their services to the same client base. A recent presentation by a realtor, in one of my networking groups, offered that the real estate attorney, home inspector, mortgage broker and she all work together to present the ‘package’ opportunity to new clients.

       These types of relationships are certainly referral relationships, but if they advertise or hold workshops or seminars together, they would be jointly marketing. A company might provide a coupon to buy something at another company when a purchase is made at the first company. A car service department may provide a coupon to a nearby car wash. So when your car is picked up from the service you can get a discounted or free car wash. This benefits both the car service company and the car wash company.

       When it comes to joint marketing be as creative as possible. You are trying to leverage your resources and another company’s resources. The objective is that you both win. Again, just make certain you are in compliance with your franchise agreement.

By Steve Grundleger

For more information: francoach@focalpointcoaching.com or call Alice at 877-433-6225