Exchange Marketing 

Exchange Marketing?
The Internet tool:
How does it work:
Asset recognition:
Target's assets:
Target's needs:
Utilizing assets:

Exchange Marketing

What is Exchange Marketing?

Exchange marketing is a process whereby two or more businesses formulate a working relationship that allows them to share assets and resources.  Exchange marketing usually involves business assets that are related to marketing.  However, any business asset or resource can be used in this process.  A company using exchange marketing is in fact participating in kind of a bartering system.  Instead of directly paying another company for its products or cooperation, exchange marketers provide a valuable activity or resource.

A company engaged in exchange marketing is usually trying to expand its market using asset exchange in place of or in conjunction with traditional advertising techniques.  If you think about it, your advertising budget will only allow you to purchase so many ads.  Also, there are only so many ad sources that reach your potential customer base.  This is true of all businesses including disability advocacy.  Therefore, in order to grow beyond these common limitations, you should attempt to develop relationships with other companies.  Exchange marketing is perhaps the most powerful marketing tool a company can use.  However, like everything else in life, it does have a down side.  The down side is that exchange marketing demands a level of research and patience that few company owners can deliver.   If you are willing to do your homework and take the appropriate actions, exchange marketing may be the only marketing technique you need to grow your business.

The Internet tool:

In exchange marketing, the Internet is an extremely valuable tool.  The reason the Internet is a valuable tool is because it allows you to do the research required to structure your exchange marketing plan.  Only the Internet allows you ( from the comfort of your computer), to identify and locate those local individuals, agencies and businesses that could be of value to your advocacy service.  

How does exchange marketing work?

Exchange marketing works by developing a relationship with another individual, agency or business that provides a mutually beneficial marketing result.  All businesses have assets that can be used in an exchange marketing scenario, but few recognize or understand how these assets can be used in marketing.  Successful exchange marketing involves four distinct steps or phases.  These are:

1)  Asset recognition
2)  Recognition of target's assets
3)  Recognition of target's needs
4)  Utilization of assets or asset exchange

Asset recognition:

Recognizing what assets you have to offer to others is a mandatory exercise for exchange marketing.   Asset recognition is profoundly personal!  It involves the fervent evaluation of what you and your business has to offer to other individuals, agencies or businesses.   Understanding what you have to offer others gives you some of the leverage you need to build an exchange marketing network. 

All businesses have assets that go far beyond their bank accounts, equipment or even the products or services they offer.  Examples of poorly recognized assets are the owner's background or experience, knowledge base within a firm or even a companie's customer list.    Once you have recognized and listed your personal and business assets, it is a good deal easier to approach another firm with an offer of an exchange.

Target's assets:

Before you can approach a business target with an offer of an exchange, you must determine if the potential target has access to what you want in terms of a market.  To make this determination, you must evaluate the target's assets.  For example, let's say that you are looking at community drugstores.  Common sense tells you that a drugstore sells drugs to those suffering from medical disorders.  Some of these disorders may be disabling.   This means that the drugstore would be a good candidate for an exchange because it can provide your firm with a new source of potential customers.  This bit of deductive reasoning is important in exchange marketing because it makes you ask whether or not the target can meet your need for a new customer source.  If the target cannot provide an avenue for new customers, why bother approaching them?

Target's needs:

Identifying a target's needs is just as important as identifying your needs in an exchange relationship. Taking a little time to identify a target's needs will allow you to develop a stronger relationship with that target.  Understanding the target's needs also gives you more leverage during the development phase of the relationship.  Even though we are talking about marketing, here is a bit of good advice.  Don't automatically assume that the target is looking for the same thing you are in an exchange relationship.  Although the target will usually be seeking more customers just like you, it is not always the case.   In being open to other possibilities, you may be able to forge an even stronger relationship. 

How do you find out what the target wants?  You ask!  When you first approach a target, it is good idea to explain the concept of exchange marketing.  Then directly ask how you might help the target achieve his marketing need.  If the target doesn't know, here is where your previous research may come in handy.  With the knowledge you have gained from reviewing the target's potential needs, you can make suggestions as to how you and the target might  work together for the benefit of both.  The target will be impressed with the fact that you have taken the time to understand his potential marketing needs.  And, since no money is usually exchanged in these relationships, the target has no real reason to feel apprehensive. 

Don't try to close a deal on the first visit.  Use a number of visits and phone contacts so that you and the target can get to know one another.  Explain your service to the target.  Be   as honest in explaining how the target can help you as you are in explaining how you can help him.  Remember, the foundation of successful exchange marketing is the ability to formulate mutually beneficial relationships with other individuals, agencies and businesses.

Utilizing assets:

Here is a simple example of how you can utilize a business asset.  Most all businesses do some form of advertising to a targeted market that best fits what they are trying to sell.  Many businesses, including advocacy services receive literally hundreds of customer contacts every month.  The business then sorts through the contacts and extracts a small percentage as actual paying customers.  The business may then discard all the other contacts, failing to see these non-customers as an asset.  This is a terrible mistake for any business to make.  Just because these contacts turn out to be non-customers for the firm that directly solicited them, it doesn't mean that some other company offering a different product or service can't use them.  This business philosophy is the foundation for why exchange marketing works so well.  What is useless material to one company may be pure gold to another. 

In exchange marketing, bi-directional thinking in respect to asset sharing is extremely important.   Not only should you seek to learn how a company can serve you, you must also seek to learn how you can serve the marketing needs of the target company.  Remember, if you advertise, you too will develop a customer list that just might be what your exchange target needs to further grow his company.

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