To Netpreneur Exchange HomeTo Discuss 
Main Page

AdMarketing | Funding & Finance | Netpreneur Corner | News Center | Quick Guide | Home

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

AM: RE: FW: "Gorilla Marketing"

To:     "'Mitch Arnowitz'" <marnowitz@morino.org>, "'ad-market@netpreneur.org'" <ad-market@netpreneur.org>
Subject:     AM: RE: FW: "Gorilla Marketing"
From:     "David C. Frankil" <dfrankil@erols.com>
Date:     Thu, 31 Jul 1997 22:41:20 -0400

George 

Can you provide any additional information on Microsoft's "Value Chain Initiative"?

David C. Frankil
Partner
V.COM, LLC
the virtual compliance company

dfrankil@erols.com

703 533-5550
703 533-5551 (fax)

-----Original Message-----
From:	Mitch Arnowitz [SMTP:marnowitz@morino.org]
Sent:	Thursday, July 31, 1997 1:28 PM
To:	'ad-market@netpreneur.org'
Subject:	AM: FW: "Gorilla Marketing"

All-

Enclosed is a recent post sent to the group by George
Atkinson of Trade Compass. I have heard George speak on 
Internet Gorilla Marketing- very interesting. I am reposting George's 
Gorilla Marketing experience and have added an experience of 
my own. The topic George writes on is of interest to many in the 
group; Gorilla Marketing. 

Anyway, please take a quick read & add your comments/thoughts or
an experience of your own. 

thanks!

Mitch Arnowitz <marnowitz@morino.org>
Business Development 
The Netpreneur Program  
v 703.620.8971
<http://netpreneur.org>


George Atkinson, of Trade Compass writes:

>At Trade Compass (www.tradecompass.com), the leading website and 
>Internet software company for global trade and transportation, we have found
>it beneficial to partner with a few select big companies in a strategy
>that I have dubbed "gorilla marketing."  By forming strategic alliances with
>such 'gorillas' as Microsoft (3 divisions), GTE's Enterprise Solutions
>group, Oracle, FedEx, and Sterling Commerce among others, we have been
>able to advance our marketing objectives beyond where we would have been 
>otherwise.

>These relationships have helped us: (1) ATTRACT NEW CUSTOMERS through co
>-branded sales and marketing programs. For example, we're teaming with all
>of the above listed companies on our 15-city "Export America" conference
>series to jointly educate/evangelize the trade community; we're a part 
>of Microsoft's Value Chain Initiative 'dream team' in which our solution along with 
>those of other VCI members is being pitched to Fortune 500 companies; and GTE
>wants to resell our services to GTE's existing and new corporate intranet accounts 
>(2) ATTRACT ATTENTION through joint PR announcements and programs.Oracle,
>through their PR firm, regularly engineers articles in major trade magazines featuring 
>our use of the Oracle Express Server for our World Trade Analyzer product... free
>national exposure. (3)  GET A JUMP ON COMPETITION.

>Big companies seem to only want to work with a select group of alliance
>partners, and in our experience, only want to work with those which lead
>their 'sector.'  By gaining the alliance of the 'gorillas' at this stage in our
>development, we hope to add momentum to the lead in our niche to stay. 
>If I were to relay any keys to our success so far (time and cash flow 
>will the ultimate judge of these relationships), I would say that it's important
>to (a) BE SELECTIVE of alliance partners and try to pick the best to further 
>specific goals of your Marketing Plan, and (b) DRIVE THE AGENDA.

>Another Microsoft alliance partner--a small company like ours--passed along
>this advice to me at a Microsoft Small Business Summit.  Respect
>comes--and objectives are furthered--when you set and maintain the
>reigns of the agenda.

>*** I would be interested to hear from the group of any similar
>experiences and advice regarding 'gorilla marketing'.

>George Atkinson
>Vice President, Marketing
>Trade Compass
>1510 H. St. NW, Suite 500
>Washington, DC  20005
>Tel: 202-783-4455
>Fax: 202-783-4465
>E-Mail:  gatkinson@tradecompass.com
>www.tradecompass.com
>"Gateway to International Commerce"

George-

While at CyberShop (LLC start-up, the online department store), I developed
a revenue sharing relationship with Time-Warner's Pathfinder (consumer
orientated) site. This relationship placed CyberShop in Pathfinder's shopping
area. Being an Internet start-up, I realized early on that I would have 
to piggyback or develop "strategic alliances" to meet our objectives. My 
objectives for this relationship were branding, traffic and most important- 
generating customers (paying customers is another issue, for another post). 

If I was able to generate advertising revenue (a major if), I would buy banner
ads on netscape, etc. to generate traffic that in turn would lead to paying
customers. Again, this business was an Internet commerce model. I decided,
there was a quicker, much easier, more profitable way to get this job done.
That way was to offer value and piggyback onto an established partner's 
program.

I was able to meet Pathfinder's need at the time (offer valuable discount for
affinity program being developed for new subscription service; Personal Edition). 
In return, website decision makers saw product value and agreed to enter into 
revenue sharing relationship. My branding rational to Time-Warner was that in 
order for them to make money, the relationship needed promotion. Logical web 
promotion included advertising. Pathfinder (generating 1MM users a day), 
agreed to run banner ads, free of charge, to promote the relationship. 

I agreed to pay them 5% + $0.50 per order. Little downside as revenues were 
paid on incremental business with average price points of $130.00
(at the end of the negotiate, they insisted on an annuity on ongoing business). 
In the end, I got $150,000 of free advertising on one of the more trafficked websites, 
major branding & credibility (customers also clicked through to a co-branded 
gateway) and hopefully some paying customers.

So what did I learn from this partnership? Well, I did build a model that we 
successfully used with others on the web. And... I did quickly learn the meaning 
of the term "level playing field." It was not so much what I learned 
as having traditional off-line experience confirmed... Confirmed was the value 
proposition, meaning that Time-Warner saw value in our product or service.
Big or small, if a partner sees value, half the job is done. Also, some things 
never change: key to the deal was the relationship developed. 

Lastly, I learned that (at least online) big established companies, are open to 
partnering with small, nimble organizations. Large companies seem to be 
anxious to learn from smaller start-ups, kinda like inexpensive R & D. 

**Does anyone have similar experiences they can share? 






AdMarketing | Funding & Finance | Netpreneur Corner
News Center | Quick Guide | Home

By using this site, you signify your agreement to all terms, conditions, 
and notices contained or referenced in the Netpreneur Access Agreement
If you do not agree to these terms, please do not use this site. Our privacy policy.
Content copyright 1996-2016 Morino Institute. All rights reserved.

Morino Institute