Question

Topic: Advertising/PR

Market With The Enemy?

Posted by Anonymous on 250 Points
I have a unique situation to do marketing with my competitor. They are much bigger and have deeper pockets than I do. They have approached me to do co-marketing campaigns with them and they would pay 100%. However, they are a direct competitor in my space. If I do not market then I have other competitors (who are also direct competitors with the same company) who will more than likely accept the offer. The company is Microsoft.


The question: To Market or Not? Why would I jointly market with a competitor?
To continue reading this question and the solution, sign up ... it's free!

RESPONSES

  • Posted by tim.beadle on Accepted
    Yes, you should co-market with them. But focus on following up the results of the activity. Microsoft and most of the IT industry is rubbish at following up lrads and opportunities that result from marketing campaigns. Do this element well and you differentiate yourself from your competitor AND from Microsoft.

    Tim Beadle
    Director
    Marketing Improvement
    [URL deleted by staff]
  • Posted by Pepper Blue on Accepted
    Hi dtallant,

    As you have found out, this will require a lot of decision-making on your part

    Think of the theory of co-opetition (cooperative competition) as wrote about by the book of the same name:

    https://mayet.som.yale.edu/coopetition/index2.html

    I suggest you read this ASAP or find as many excerpts online as you can.

    Is Microsoft rally a complimentor? This is someone who makes your products and services more rather than less valuable.

    Things like this are the key to making it successful.

    Simple definition here at Wikipedia:

    https://en.wikipedia.org/wiki/Coopetition

    Ultimately, when armed with your best information and new-found knowledge and W.M.M.A.'s Franklin Chart suggestion (nice one, Randall) only you can make the decision.

    Good Luck!
  • Posted by Peter (henna gaijin) on Accepted
    In tech, you are almost always working with and competing with (at the same time) the larger companies out there. Happens with Microsoft, IBM, etc. Thy are so large that it makes sense for one group of them to work with you, while another group within their company is trying to beat you. Given this is normal, don't automatically say no. Instead look at the facts.

    On that, I agree with Randall - make a chart and compare the pros and cons. You did provide some details in your question, but not a lot (and definitely not enough to make a decision).

  • Posted by MANSING on Accepted
    Hi

    Competition is every where! Going with enemy or staying against enemy; main thing is behind the line, future for you and your company. Check advantages and disadvantage by going with them and not going with them? You will get right answer.

    We are with you. Best of luck!

    I hope this will help!

    Regards,

    M Bhor
  • Posted by darcy.moen on Accepted
    This is one that cuts both ways.

    on one hand, free advertising, and with one of the biggest brands on the planet....talk about instant credibility!

    on the other hand, how will their powerful brand overshadow yours? Will it? Kill it? Bill it? Is there another unknown risk for slipping under the sheets with the enemy?

    Oh it's tempting, but risky too.

    Definately weigh it out carefully.

    Darcy Moen
    Customer Loyalty Network
  • Posted by telemoxie on Accepted
    One key to successful negotiations is to have "walk away power." Right now, it sounds like you have the ability to walk away from the deal.

    I have heard there is a process a larger company will use to assert control over a small company, which goes something like this:

    1. They start a small engagement

    2. They become a repeat customer

    3. They start talking about bigger opportunities, hoping you will cut back on other marketing effrots

    4. They place a small "bigger opportunity" order, possibly at lower margins than you would like, which strains your key resources, impacts your cash flow, and requires time from your senior executives

    5. They delay payments and/or delay the project, and if their work makes up a significant portion of your income, they essential control your company.

    How can you avoid these traps? You might try to structure the deal so that it does NOT allocate your most scarce resources (sr. mgmt talent, cash, most technical team members) and most importantly, you should step up your other marketing efforts. Also, you need to very carefully read their contract, so that you are not prohibited from running your business in the future.

  • Posted by Deremiah *CPE on Accepted
    dtallant,

    I hope you're having a great day!

    This is an area where I'm bound to get a great deal of cross fire. Because my over 30 years of research proves something different than the norm...The truth is you really don't have any external competition (or enemy) because in the real world your biggest competitor is yourself.

    THE INNERME---IS YOUR BIGGEST COMPETITOR...Watch him more than you watch the external advancements of the other guy...that guy most people generally refer to as "THE COMPETITION".

    THERE IS NO COMPETITION JUST A LACK OF CREATIVE CREATORS...In our current age there is no competition just a lack of creators. Yeah, those people who are afraid to think, act and become more creative, objective and observant. With in you is so much raw power and ability that most people are afraid to take a peek at their real selves. They're afraid to trust their own judgements, inclinations and ideas.

    HAVE YOU EVER NOTICED THAT PEOPLE WHO WATCH THE PROVERBIAL COMPETION ARE...The same people who are "BEHIND in the race". Have you ever seen what happens to the track runner who is watching the competition...turns his head for just a second to see where the competition is and he's gone... the competition has disappeared---turns his head again and the competition is way out in front of him. If he would have only be little more concerned about where he was at rather than worrying about where his opponent was he probably would have won the race. But oh no...I've got to know where everybody else is at. The above runners problem was driven by fear.

    BE LIKE THE LEAD DOG IN THE IDITAROD...GET OUT FRONT FAST BECAUSE BEING BEHIND "STINKS"...the LEAD DOG does not see the competition because they're out front. And the dog who does see the LEAD DOG in front of him is also the same dog that's sniffin' the butts of the competition. Being behind stinks.

    SO WHAT AM I SAYING...Microsoft is not your competition they're one of your main customers when their coming to you for any service they need you for. Take good care of them, learn from them and serve them so well they continue to need you in the process of how they do business. Now you're out front again...instead of stinkin behind. It's just a stinkin' mindset paradigm we need to change about how we see ourselves. Microsoft's not your competition and they're not out front either...they're your customer...do everything you can to serve them well.

    SO THAT'S MY ANSWER and that's what I'd do but you listen to your Inner-me and make sure you're not the enemy. Remember our only real problem in life is our failure to be "MORE Creative" than we’ve ever been. If you “Invent” your opportunity YOU WILL most definitely C-R-E-A-T-E your future. I'm here for you if you need me. Is there anything else I can do for you?

    Your Servant, Deremiah, *CPE (Customer Passion Evangelist)

Post a Comment