MARKETING
Collaborative Advantage
By Jonathan Phillip Kyetume
As most African economies are struggling to recover from recession as a result of the Covid-19 pandemic , the region now struggles with the direct and indirect impact of the ongoing geopolitical tensions , translated into the growing global inflation , supply disruptions , and food insecurity , and climate shocks . The World Bank Africa ’ s Pulse 2022 Report on regional macroeconomic outlook indicates a decline in projected regional economic growth at 3.6 percent in 2022 , from the 4 percent in 2021 .
The growing commodity prices are having a direct impact on the general population ’ s disposable incomes , consumption trends , and eventual revenues for different firms . For sub-Saharan Africa , for representation , as of April 2022 , economic inflation stands at 6.05 percent for Kenya , Uganda at 5.2 percent , Tanzania at 3.8 percent , Rwanda at 7.5 percent , Nigeria at 17.4 percent , and South Africa at 6.5 percent . The increasing cost of living is leading to reducing levels of disposable income across the continent that has a direct impact on general business performance across various sectors .
Strategy at Crossroads
Various Industries are experiencing market saturation , growing consumer numbness to marketing campaigns , and reducing Purchasing Managers ’ Indices signaling deteriorating business conditions and rising costs of customer acquisition and conversion . As a key concern , the growing technology disruptions and competition levels among industries are quite alarming . For most African firms , the strategic focus is now market penetration as they look to leverage existing customers through various retention strategies at an optimal cost to ensure profitability . It is then imperative to consider strategic collaboration with a firm to reach respective long-term or shortterm business goals in line with customer acquisition , revenue growth , brand equity , awareness , and in some instances shared Corporate Social Investment .
Partnership marketing is increasingly becoming an effective way for two or more businesses to combine forces and reach a broader audience for a mutual benefit . Partnership marketing has several benefits ranging from marketing cost efficiency , revenue growth , operational excellence , access to new segments , and growth of brand equity . Partnership marketing leverages each firm ’ s respective existing customers , systems , distribution channels , brand equity , and resources . One of the key considerations is to find a partner serving a considerably sizeable existing audience in a parallel customer segment . Partnership marketing involves two or more parties , so it is extremely important to align on goals , desired outcomes , and campaign monitoring to ensure campaign success and sustenance to achieve a competitive collaborative advantage .
For anything , the success of a partnership marketing campaign falls back , on people and communication . It is important to align and create channels for continuous clear communication regarding campaign performance , crisis management , human resource and hence principles of change management and relationship management come into play .
Internal marketing has a huge impact on shaping organizational behavior and is a critical factor in the success of partnership marketing campaigns to deliver intended business goals . Internal marketing as a key factor in partnership marketing greatly relies on complex human sociology . Research findings by Grundey & Daugelaite ( 2009 ) on the development of business partnerships based on internal marketing further assert that benevolence , attitude , competence , and personal motives of employees of both partners are extremely critical in the effective development of the partnership . The study further suggests the need for employee engagement in the strategic partnership objectives to enable the development and strengthening of partner relations . The success of the partnership planning phase is strongly influenced by internal marketing levels of respective organizations across the different elements of inter-functional coordination and integration .
For success , sustenance , and long – term value , Partnership strengthening is dependent on consistent and continuous internal marketing engagement for the parties involved in a partnership marketing campaign hence the need for the internal marketing and change management plans to be executed way before the partnership starts . Partnership marketing through competitors , Co-opetition strategy , presents an even more curious case of strategic alliance for mutual value beyond corporate social investment , advocacy , and industry policy reforms . How then do we get competitors to work together for commercial value ? How do we protect trade secrets ?
Jonathan Phillip Kyetume is a Marketing and Communications Specialist . You can commune with him on this and related issues via email at Jonathankyetume @ gmail . com .
34 MAL48 / 22 ISSUE