Joint Business Development - How to Build a Startup

Summary

The video script discusses the strategic partnership model of joint business development and promotion, exemplified by Intel's innovative approach in the 1980s. Historically, computer chips were obscure components, but Intel revolutionized this by compensating PC manufacturers to display 'Intel Inside' on their products. This strategy transformed an unseen silicon piece into a recognized and valuable brand, fostering shared advertising and sales initiatives.

Takeaways

• 🤝 Partnerships for joint business development can involve joint promotion of complementary products.
• 🌟 One partner may be the dominant player in such collaborations, leading the promotional efforts.
• 💡 Intel stands out as a prime example of a successful joint business development strategy in the computer industry.
• 📦 Historically, computer chips were unseen by consumers and lacked brand recognition.
• 🔄 Intel revolutionized the industry in the 1980s by changing the way chips were marketed to consumers.
• 💰 Intel initiated a strategy of paying PC manufacturers to display 'Intel Inside' on the outside of computer boxes.
• 🚀 This move transformed the previously unknown silicon chip into a recognized and valuable brand.
• 📈 The 'Intel Inside' campaign involved sharing advertising dollars and sales programs between Intel and PC manufacturers.
• 🔗 The collaboration created a mutually beneficial relationship, enhancing brand visibility and sales for both parties.
• 🛍️ The joint promotion strategy effectively turned a technical component into a selling point for consumers.
• 📊 The Intel example illustrates the power of co-branding and strategic partnerships in building brand equity and market influence.

Q & A

What is the concept of joint business development mentioned in the transcript?

Joint business development refers to a partnership between two or more businesses to collaborate and develop new products or services, or to expand their market presence together.

What does it mean to jointly promote complimentary products?

Jointly promoting complimentary products involves two or more companies marketing their products together because they complement each other, enhancing the value proposition for consumers.

Why might one company be the dominant player in a joint business development partnership?

A company might be the dominant player in such a partnership due to its larger market share, stronger brand recognition, or more significant resources, which can influence the partnership's direction and strategy.

What is an example of joint business development in the computer industry?

The example given in the transcript is Intel, which changed the game in the 1980s by paying PC manufacturers to display 'Intel Inside' on the outside of the computer boxes.

How did Intel change the perception of computer chips in the 1980s?

Intel changed the perception by creating the 'Intel Inside' campaign, which made the chip, previously an unknown component, a recognized and valuable brand.

What was the significance of Intel paying PC manufacturers to put 'Intel Inside' on the box?

This move was significant because it turned the computer chip, which was previously unseen by consumers, into a recognizable and trusted brand, influencing consumers' purchasing decisions.

How did Intel's joint promotion strategy involve sharing advertising dollars and sales programs?

Intel's strategy involved sharing the costs of advertising and sales initiatives with PC manufacturers, making it a joint effort that benefited both parties in terms of brand promotion and sales.

What is the importance of branding in joint business development and promotion?

Branding is crucial as it helps create a unique identity and value proposition for the products or services being offered, making them stand out in the market and influencing consumer choices.

How can joint business development and promotion benefit both partners involved?

Both partners can benefit from increased market reach, shared marketing costs, and the ability to leverage each other's strengths to enhance product offerings and customer appeal.

What lessons can other industries learn from Intel's 'Intel Inside' strategy?

Other industries can learn the importance of making unseen or behind-the-scenes components valuable to the end consumer, and the power of joint promotion in building brand recognition and loyalty.

Can the 'Intel Inside' model be applied to industries outside of computer technology?

Yes, the 'Intel Inside' model can be applied to other industries where components or ingredients are not typically promoted to the end consumer but can add value when associated with a trusted brand.

Outlines

00:00

🤝 Joint Business Development and Branding Strategy

This paragraph discusses the concept of joint business development through partnerships, specifically highlighting Intel's innovative approach in the computer industry. In the 1980s, Intel transformed an obscure computer component into a recognizable brand by collaborating with PC manufacturers. They introduced the 'Intel Inside' campaign, which involved paying manufacturers to display the Intel brand on the exterior of computer boxes. This strategy not only promoted Intel's chips but also established a model for joint promotion and shared advertising and sales initiatives, turning an unseen piece of silicon into a valuable brand asset.

Keywords

💡Partnerships

Partnerships in the context of the video refer to collaborative business relationships where two or more parties work together to achieve common goals. In the video, partnerships are highlighted as a key strategy for joint business development and promotion of complementary products. The emphasis is on the mutual benefits and the shared efforts in marketing and sales programs.

💡Joint Business Development

Joint business development is the process where two or more companies collaborate to create new business opportunities or enhance existing ones. The video script discusses this concept as a type of partnership where one company might take a dominant role, as seen in the Intel example, where they initiated a strategy that benefited both Intel and PC manufacturers.

💡Joint Promotion

Joint promotion is a marketing strategy where two or more companies pool their resources to promote each other's products or services. The script mentions Intel's innovative approach to joint promotion by sharing advertising dollars with PC manufacturers, which helped in building the 'Intel Inside' brand.

💡Complimentary Products

Complimentary products are those that are used together to enhance each other's value or utility. The video script suggests that partnerships can involve the joint promotion of such products to increase market reach and consumer appeal. Intel's chips and PC manufacturers' computers are an example of complimentary products in this context.

💡Dominant Player

A dominant player is a company or entity that holds a significant market share or influence within an industry. The video uses Intel as an example of a dominant player that changed the traditional approach to branding and marketing within the computer industry.

💡Intel Inside

The 'Intel Inside' campaign was a branding strategy initiated by Intel to promote their microprocessors within the consumer market. The video script describes how Intel paid PC manufacturers to display 'Intel Inside' on their products, turning an internal component into a recognized and valuable brand.

💡Branding

Branding is the process of creating a unique name, symbol, or design that identifies and differentiates a product or service from others. In the video, Intel's 'Intel Inside' campaign is an example of effective branding that made the company's chips a recognizable part of the consumer's purchasing decision.

💡Advertising Dollars

Advertising dollars refer to the budget allocated for promoting products or services through various media channels. The video script highlights Intel's strategy of sharing advertising dollars with PC manufacturers as a way to jointly promote their products and increase brand visibility.

💡Sales Programs

Sales programs are initiatives or strategies designed to increase the sales of products or services. The video discusses how Intel and PC manufacturers shared sales programs as part of their joint business development and promotional efforts.

💡Silicone

In the context of the video, silicone is a misspelling of 'silicon,' which is a chemical element and a primary material used in the manufacture of computer chips. The script uses the term to describe the chips that were once unknown to consumers but became a recognized brand through Intel's marketing efforts.

💡Consumer

A consumer is an individual who purchases goods and services for personal use. The video script discusses how Intel's strategy changed the perception of computer chips from being an unseen component to a visible and valued part of the consumer's purchase, influencing their buying decisions.

Highlights

The concept of joint business development partnerships is introduced.

Joint promotion of complementary products is discussed as a partnership strategy.

The potential for one partner to be the dominant player in a joint venture is mentioned.

Intel is cited as a prime example of a successful partnership model in the computer industry.

Historical context of chips being an unseen component within computers is provided.

The traditional anonymity of chip manufacturers in consumer products is highlighted.

Intel's innovative strategy in the 1980s to change the visibility of chips is discussed.

The 'Intel Inside' campaign is described as a game-changer in branding and marketing.

Intel's initiative to pay PC manufacturers for branding is outlined.

The transformation of an unknown silicon piece into a valuable brand is emphasized.

Joint business development through shared advertising and sales programs is mentioned.

The importance of shared advertising dollars in partnerships is underscored.

The significance of sales programs in collaborative efforts is noted.

The overall impact of Intel's strategy on the computer industry is recognized.

The practical application of Intel's approach in creating brand awareness is detailed.

The innovative methods used by Intel for brand promotion are summarized.

The theoretical contribution of Intel's marketing strategy to business partnerships is presented.

The transcript concludes with the lasting impact of Intel's branding strategy on consumer perception.

Transcripts

The next type of partnerships might be joint business development,

joint promotion of complimentary products.

One might be the dominant player. The best example of this in the computer industry was Intel.

Now, historically, chips ended up to be inside the computer that the consumer never saw at all,

and in fact, the only name on the outside of the box was the manufacturer,

but Intel in 1980s changed that game.

They said what if we pay PC manufacturers to put the phrase Intel Inside on the outside of the box,

and what used to be just this unknown piece of silicone inside the computer

actually became a valuable brand for joint business development,

joint promotion by sharing advertising dollars and sales programs.