Partnership marketing can be unstoppable when it works, but is usually a disaster when it doesn't according to Andy Snuggs, MD at marketing agency Geronimo. Whilst it is traditionally more popular amongst consumer marketers, business marketers are increasingly recognising benefits including increased sales, new product development, brand building and even cost reduction.

However, partnership marketing is still not well understood. Many are wary of it, fearing it will prove costly, may damage brand value and offer greater benefit to the partner. It is for this reason that partnership marketing remains a little understood, little discussed aspect of marketing. Yet it has such potential.

Snuggs offers this definition: “In its simplest form, partnership marketing is two parties having complementary needs that can be cost effectively fulfilled. They might be operational or marketing focused. They may be short term promotional offers or they might be longer term strategic alignments.” Following are six of the most common types of B2B partnership marketing.

1. Marketing to an existing community

The National Outsourcing Association (NOA) aims to bring together users and providers of outsourcing services and promote best practice in all aspects of outsourcing. It does this through events, awards, networking and education, all targeted at businesses. Like most industry bodies it has a small marketing budget and so relies heavily on partnerships in all these areas.

Kerry Hallard, MD of Buffalo Communications, the NOA's marketing agency, says, “The NOA enters into partnership marketing programmes with many outsourcing suppliers who wish to promote themselves to its membership base. For example, it partnered with KPMG to deliver an industry research report. KPMG paid the money, NOA lent its brand and its database and the resulting research was published as a joint initiative. This resulted in a win-win for everyone. KPMG got useful market insight and associated its brand with an industry body and a pertinent industry issue for marketing purposes. The NOA got market research to dispatch to its members, free of charge, and raised its profile.”

2. Pooling data

A profitable area for partnership is pooling data. As data acquisition becomes more expensive, if you can find another brand that is targeting the same prospects as you with a non-competitive offer, you can save money.

However, this sort of partnership is rare and fraught with difficulties. Amanda Arthur, data planning and analytics director at marketing agency EHS Brann Discovery, says, “Many companies wouldn't consider sharing data or even letting a third party have sight of their data, such is its value to an organisation. Then there is the problem of who owns the data and insight, and of course you need to ensure you have the correct permissions from the businesses you are targeting.”

If you are able to find a suitable brand partner, you should ensure that you iron out ownership rights at the beginning of the relationship, and get the deal closely examined by marketing as well as legal experts to ensure that it is genuinely mutually beneficial.

3. Tackling a market problem together

They say that two heads are better than one and Dr Katy Mason, lecturer in marketing at Lancaster University Management School, believes that companies working in partnership can often tackle market problems more successfully than they would alone.

She says, “In my research with companies, managers and executives have frequently discussed the value of partnership marketing in terms of problem solving. Here, firms with different sets of core competencies work together to solve customer problems. In this way, partnership marketing can offer a new perspective on a problem or market opportunity.”

4. Sharing the cost of a mailing

“People spend more time looking at bills and statements than they do at traditional direct mail and emails,” says Andrew Greenyer, VP of international marketing at Pitney Bowes Group 1 Software. “And yet, over half a billion pounds worth of advertising space on bills and statements lies unused in the UK.”

It is already common practice for banks and utility providers to include their own or another company's marketing messages in its bills and statements and Greenyer believes it is becoming popular with B2B marketers. He offers this advice on how to make a success of the partnership: “Use the usual targeting methodologies to ensure you're reaching the right businesses. Ensure that the brand values of your partner company fit your own. Be certain that the company with which you are aligning your brand conducts its customer communications in a professional manner.”

5. In-depth sponsorship

Not so long ago, sponsorship meant sticking your company name or logo on the marketing material of the event you were sponsoring. Now, sponsorship deals can be so complex and involved that many view them as a form of partnership marketing. For an example, ValueClick, a digital marketing company, is sponsoring the conference programme at Ad Tech 2007. It will host a senior level panel debate to close the first day's conference. The panel debate will be followed by a drinks reception which will be open to all conference attendees.

Gary Goodman, marketing director at ValueClick Europe, says, “This is also a great opportunity for us to meet up with our key clients and provide them with further insight about our services and to network further through our drinks reception. Success in this will depend on how well we maintain our close partnership with Ad Tech right through to the full execution over the two days. It's all about working collaboratively with your partner, giving and taking, being flexible and realistic about managing expectations.”

6. Overseas partners

For many companies, overseas expansion is an ambition that never becomes fulfilled, not because they lack potential in those overseas markets, but because they simply lack the wherewithal to get started. In these circumstances, an overseas marketing partner can be extremely useful.

A good example of this is the partnership between data consultancies, Information Arts and Protocol. It has helped the former break into the US and Far East and the latter break into the UK and Europe.

As with all forms of partnership marketing, however, it is essential to have a clear objective for the relationship. Simon Lawrence, CEO of Information Arts, says, “There has to be a compelling reason for the partnership, and the market has to clearly understand it. If the target market can't see the obvious connection or benefits between the partners then there is a strong likelihood it will fail.”