PARTNER RELATIONSHIP

MANAGEMENT- STRATEGIC
PERSPECTIVE
Presented by-
Parag Rastogi
 Earning Partner’s Trust
• Current time is of economic uncertainty
• What organizations want to do:
– Expand reach and revenues
– Minimize cost and risks by sharing
sales related responsibilities
 Is it so easy ….. As it sounds
 No, not at all…. It requires finesse



 The concept-PRM
• To help address and manage such
concerns, many companies are now
launching more advanced partner
relationship management (PRM)
programs.
• Partner relationship management r
efers to working closely with partners
in other company departments and
outside the company to jointly bring
greater value to customers 

•
 

• PRM : business partners :: CRM :
customers
• The strategies, processes and software
tools that enable companies to
organize and optimise their partner
relations.
• The goal: to create a highly
coordinated, “closed loop” system for
ensuring marketing, sales and service
success across the extended business
ecosystem
 Types of partnership
• ranges from flirtation / short
term relationship/ ....marriage
• one project / loose reseller
arrangement../ value-add / joint
venture ... permanent -
acquisition/merger!
• Different types of partnerships
necessitate different strategies
•
• Partners inside the company is every
function area interacting with
customers
• Electronically
• Cross-functional teams 
• Partners outside the company is how
marketers connect with their
suppliers, channel partners, and
competitors by developing
partnerships 
 When to partner or do it by
yourself
• Employee skills
• Available assets
• Superior processes
• Cost
• Differentiated offering
• Protected niche

 What partnering does??
• Partnering creates a
– larger virtual organisation
– more advantageous to capturing market
share.
• Business goals and information must be
shared.
• Primary provider may reduce working
capital, some of this carried by
partners. 

 hallmarks of PRM
• Alignment: Align sales, marketing and
service policies, processes,
relationships and technology to better
support partners
• Incentives: Use the correct incentives to
entice business partners to work with
the PRM system and assume more
customer-related responsibilities and
costs
• Integration: Use dedicated PRM
technology, integrated with internal
and partner CRM and financial
• Segmentation: Rate partners based on
actual performance and capabilities,
then apportion leads accordingly
• Support: Support external sales teams
through training, increased funding
and by embedding internal marketing
personnel
•
 Best practices that companies
should follow
• Revise business practices
• Create clear rules
• Select right technology then integrate
• Entice partners to participate
• Identify the best business partners
•
 Advantages of PRM
• The idea of B2B PRM is not new….but
why it is practiced
– business taking advantage of the
Internet, it makes improved
communication possible
– business becoming more specialized in
the services they provide, it is creating
a greater interdependency between
businesses thus need for PRM
applications
– products and suppliers located all across
the globe, a better system for real-
 Role of partner relationship
manager
• Decide what type of partnership is
appropriate
• Select best approach
- management and operations
• Identify skills needed
• Identify data needed
• Some solutions are people intensive,
others depend heavily on IT
•
What I am going to deal????
• Affinity development or co-branding
• Co-branding involves combining two or
more brands into a single product or
service
• Companies engage in co-branding to
leverage strong brand
• A well executed co-branding strategy
can lead to win-win situation for both
co-brand partners and can help in
realizing unexplored markets or
untapped opportunities.
 Forms of co-branding
• Ingredient co-branding- Intel & HP
• Same company co-branding- Tata
• JV co-branding- examples later
• Multiple sponsor co-branding-
promotional events
 Goals of co-branding
• Expanding customer base
• To make financial benefits
• Respond to the expressed and latent
needs of customers
• To strengthen its competitive position
• Introduce a new product with a strong
image
• Creating a new customer perceived
value
• To gain operational benefits
 Co-branding Agreements
• In a co-branding alliance, both
companies should have a relationship
that has potential to be commercially
beneficial to both parties.
• Co-branding agreement includes
– rights,
– obligations and
– restrictions that are binding on both
the parties.



• Agreement also explains about
– marketing strategy,
– brand specifications,
– confidentiality issues,
– licensing specifications,
– warranties,
– payments and royalties,
– indemnification, disclaimers, term and
termination. Person involved in
campaign must be very clear
about these issue
Understood everything ????
Some examples
 Ryanair
• Lowest rental air carrier in Europe
• Superb marketing mix
•
Where is PRM??

Ryanair has collaboration with

 Hertz car rentals-25% less charges

 BCP- car parking facility at 26
airports
 Cheap hotels -73000 + in 71
countries
 Pharma + Hospital
• Delhi based Panacea Biotec-a R&D
company
• Delhi based Umkal group- a multi-
specialty healthcare institution
• Together established super-specialty
hospital in Gurgaon
• Technical advantage

Kingfisher Airlines + American
Express
• Launch India’s First Airline Corporate
Charge Card Program 
• A market-first, the American
Express® Kingfisher Airlines
Corporate Card offers India-based
companies an 8% rebate on
Kingfisher Airlines air travel which is
charged to the Card
• Also offer Card members an exclusive
membership upgrade within the 
Kingfisher Airlines frequent flyer
Kingfisher Airlines + Disney
• Disney merchandise on-board of
Kingfisher
• Books, toys, magazines, give-aways
etc. to keep children engaged.
 BookmyShow+ Airtel
• Book my show( TV18 venture)- ticket
booking portal
• Airtel- India’s largest telecom
services provider
• Airtel users can book ticket on Airtel
WAPsite
Thank you