Partnership Marketing

1
Partnership Marketing

• The DMA Insert Media Council
• 2nd Annual Insert Media Day
• Rye, NY
• September 9, 2004

2
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

3
What defines 3rd Party Marketing (a.k.a.
Syndication)

• A quick definition
• Syndication is the practice of endorsing another
  companys offer (of goods or services), allowing
  that offer to be marketed into your file and
  generating a commission on the sale.

4
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!

5
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?

6
Marketing Strategy

• Customer Research
• Attitudinal and Usage Studies
• Qualitative and Quantitative Analysis
• Surveying
• Online and telephonic customer engagement

7
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?

8
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)

9
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

10
Structuring your deals

• Compensation Structures Case Studies
• Revenue Share
• Upfront Bounty (CPA)
• Hybrid Arrangement
• Straight CPM
• Customized/Wholesale Deal
• Exchange of Space or Impressions

11
Sample Insert Media PL
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What else to prepare?

• Develop Budget and forecasting by program/channel
• Build Schedule
• Due dates by channel
• Contact Management by channel
• Outline Sales Efforts

13
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)

14
Internal Support Considerations

• Legal
• Finance
• Information Technology
• Customer Service
• Marketing

15
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

16
Financial Considerations

• Internal Allocations
• costs and income by channel
• Resources and Tracking Mechanism
• To create budget to track actuals

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IT Considerations

• Proprietary Card implications
• Adding an additional method of payment
• Website Interface

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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

19
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?

20
Creative Considerations

• Creative matters!
• Endorsement and placement
• Formats
• Include ALL terms and conditions no customer
  confusion

21
The Checklist

1. Identify customer base and what offers interest
   them
2. Analyze potential partner base
3. Determine what marketing channels you will put to
   use
4. Develop PLs (by channel)
5. Create realistic budget for your program

22
Checklist continued

• Create tracking/reporting
• Compose contract
• Develop sales tools
• Lay foundations for internal support
• Start building relationships!

23
Recommendations from the experts!

• Alissa
• Joe
• Tom
• Milton
• Jill

24
Questions?
25
THANK YOU!

• For a copy of this presentation..