SPONSORSHIP & CONTRA DEALS WHY YOUR MARKETING PLAN SHOULD INCLUDE THESE STRATEGIC INVESTMENTS

WHY YOUR MARKETING PLAN SHOULD INCLUDE THESE STRATEGIC INVESTMENTS

Since the beginning of humankind, before formal currencies were developed, people traded items that had a practical value associated in order to acquire the goods that they needed.

When currency was invented, it did not replace bartering but instead created a more organized system.

A contra deal, also known as a business barter, is when a business exchanges its goods and services for the goods and services of another. It should be mentioned that this is not a loophole for taxes, and that all contra and barter deals must still be documented and accounted for, and your accountant will be happy to guide you accordingly.

What you can leverage is only as good as what you have to offer. To begin the negotiating process, you need to understand your strengths and what you have to offer. The key is to emphasize and communicate your strengths to your potential collaborator and thoroughly evaluate the swap before accepting the first offer. Make sure you’re receiving a true value. It is easy to overlook the discrepancy when it feels as though you’re receiving a free service or product, however, it is far from free and must be treated as such (value for value).

Contra deals are a tried-and-true marketing method that businesses have been using for years. Contra dealing will ultimately lower your business’s operating cost which allows you to invest in other avenues to grow your business. Staying competitive and sustainable is what equates to healthy growth year after year and the way to do that is by adapting to the ever-changing market. Contra dealing inherently fosters business relationships and cultivates new networking opportunities. In the long run, this boosts your company’s position within market-micro and macro.

Contra deals are extremely flexible and can be made in any sector of business with any other sector of business. In digital specifically, you have a lot to leverage. Your service is essentially access to targeted online traffic which is integral to your potential collaborator’s business and its reach. There are a multitude of digital services you can leverage, such as data collection, industry how-to’s, landing pages, SEO support and more.

Like contra deals, taking advantage of key sponsorship opportunities can assist you in reaching very specific business goal. As a form of marketing, sponsorship is a strategic approach that allows you to connect with a targeted, niche market and not only build brand awareness, but also offer education and drive sales activity. Banners, booths, brochures, audiovisual displays, and swag are all examples of the varying promotional sponsorship opportunities made available through events like trade shows, award ceremonies, or sporting and charity events.

Business benefits aside, sponsorship and contra deals are also great for community support. As mentioned before, measuring value before finalizing a deal is key when the objective is to not lose profit, and understanding the benefit to both organizations will ensure the right deal for the right time. As we move into 2022, be sure to revisit your strategic marketing plan and determine how your business can leverage these critical strategies to connect with new markets.