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Exploring Collaborative Marketing Getting Started
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Getting StartedEvery effort to establish a collaborative marketing group is unique. Yet all groups face common questions and go through similar phases, and most groups can benefit from the experiences of others. In this section, we identify key questions and activities associated with five typical phases of CMG development. For each phase we also identify resources your group may find useful and possible outcomes your group should anticipate. Our goal is to provide a general roadmap for groups pursuing collaborative marketing - a roadmap that will help you "get there from here" and provide insights on what to expect along the way. It is important to recognize that some groups may move quickly through these phases, while others may spend several years working through a single phase. Also, groups may need to cycle back through phases, since one possible outcome for each phase may be to go back to the beginning and try again. Finally, some business ideas that seem appealing initially turn out to be infeasible. When this happens, the group needs to acknowledge it and stop devoting time and effort to the development process. Though these phases do have a logical sequencing, some successful groups may follow a different path. When this happens, it is important to be aware of key questions that may remain unanswered and activities that may remain undone. Ultimately, these five steps are meant to serve as a checklist. You may go through them in a different order, but eventually you will need to answer the basic questions associated with each step. 1. Identify a Need, an Opportunity, and an IdeaEvery CMG begins with the recognition of a need or an opportunity and with an idea of how to effec- tively address the need or take advantage of the opportunity. The idea may originate with an individual or may emerge from a conversation at the coffee shop or at a growers association meeting. It may be entirely new or based on the successful efforts of others. DeEtta and Tom Bilek recognized that they could receive a much higher price for their buckwheat if they could sell semi-truck loads directly to buyers. Their own production, however, was simply not large enough to do that. If they could pool their production with that of other growers, they could deal directly with large customers. They shared their idea with other buckwheat growers. It led first to the establishment of informal networks and then to the formation of a cooperative that markets buckwheat for its members and is developing new markets for buckwheat. In 1994, seven Minnesota sheep producers met to discuss long-term challenges to the sheep industry. They recognized the need to supply creative products to new markets. John Essame was one of those producers. He had moved to Minnesota from Great Britain and was struck by the difference between the market for lamb in the United States and markets in the United Kingdom and New Zealand. "They are years ahead of us in the UK and New Zealand," Essame explains. "Producers are very consumer focused. Enlightened distribution channels allow communication between consumer and producer." The group began working toward a goal of developing new products and connecting progressive lamb producers with consumers, drawing on practices and products from elsewhere and adapting them for the U.S. market. Foster your idea and ask questions Regardless of how your idea originates, it needs to be fostered and worked on, so that it is not abandoned before it has a chance to evolve into something worth further consideration and development. You also need to ask and answer hard questions.
Informally assess market and technical feasibility During this phase, it is crucial to be open minded about the feasibility of your idea. Be prepared to modify it to make it more likely to succeed. Also be prepared to let it fail. At this point, you will want to do initial research on the technical and market feasibility of your idea. This may involve making contacts with potential customers and suppliers and perhaps visiting a group that is already implementing a similar idea. Develop simple but realistic budgets for start-up investments and eventual operations. This will help your group focus on the potential costs and benefits that will need to be estimated more carefully if you continue developing your idea. Finally, you may want to informally share your idea with others to elicit their reactions and assess their interest. At this point and later in the process, keep in mind that your marketing idea must address a customer demand and meet the needs of potential members. Take advantage of resources During this phase, there are many resources that you can access for little or no cost. These include trade publications, university research reports and extension bulletins, written information from initial contacts with potential technology providers, and Internet searches. Contacts and conversations with resource people from the University of Minnesota, state and/or federal agencies and trade associations can also be invaluable. Outcomes There are at least three possible outcomes from this phase of CMG development. First, you may recognize that your idea is not feasible. You and others in your group may decide to give up, or go back to the drawing board in search of other ways to address your needs and opportunities. Second, one or more from your initial group may decide to develop the idea as individual entrepreneurs. Finally, you may decide to continue developing your idea through collective action - working toward a business organization that is producer owned and operated. |