NZB Notebook: Creative business relationships Successful strategic alliances, or Lego marketing, are all about consistency and the unselfish, intelligent leverage of a relationship for the benefit of both parties.

NZ Business, Apr 2003 by Belen, Kristina

One evening four years ago Francesco rattled on and on over the telephone. A transAtlantic call that at that very moment was making far more money for the phone company than either the Italian supplier or I would be seeing in the next two weeks. It was something about someone's new tiramisu recipe, and Mama Maria's bad back. I was the marketing manager for a gelato company, and we were organising the next shipment of nocciola flavouring and hand-roasted Italian coffee for the new cafe I was opening. A two-year old supplier relationship; at least 36 hours of phone pleasantries and negotiations in total over the period. To date, I still get birthday cards for my three kids and I've moved three times since then.

What is it about building relationships and strategic alliances? Is it a fluffy time-killer? The "warm-and-fuzzy" of business relationships? A means to get favours and freebies? If the GM says: "... Hey there marketing person, our budget has been slashed but can we still do the campaigns we approved on your marketing plan?" - does "relationship building" mean that it's then time to call on so-and-so creative house that "owes you" to do the DM piece really dirt-cheap?

Relationship building is certainly nothing new. But everything to do with applying the concept is hard work.

The hardest part of relationship building is not the pleasantries and making people feel good, although that is one key element of it. The hardest part is building each business relationship and accepting the discipline of keeping it for the future.

The dynamics of Lego marketing are pure and simple - work on happy sales, make people feel really good to be doing business with you, and deliver consistently so the busy person on the other end of your cellphone call will never press the voicemail button when your name comes up on caller ID.

Lego marketing is all about delivering on promises - building up key business relationships creatively and consistently. It's far from just throwing money at businesses yourself. It's all about building a mental rolodex where you understand how a relationship you have built is bound to have crossovers with your other alliances and relationships down the track. And if you put it all together at some stage, you will reap real rewards from each one.

It is hard work because it must be a constant. A true relationship builder is consistent. Below are a few examples of mental notes to build successful relationships:

CLOSING HAPPY SALES: Empty promises work negatively both ways.

Marketing for MTV was fun. From dealing with the crew, the stars, the ad agencies, the creatives, and the suppliers, the learning was endless. But hey, it is just as much fun marketing a database for UBD. People need business prospects, UBD provides The Hitlist service. Both MTV and UBD need bulk supplier quotes for things like CDs and DLE brochures to communicate their newest products. One key rule I learned is that a marketer cannot successfully close off in a creative world and shun the necessity of selling, no matter how creative a business environment is.

Many supplier relationships require some selling. Doors may open up to negotiation and someone closes it, but at the end of the day, it is not relationship-building to insist on getting the cheapest deal for the best quality. It is not about getting the 20,000-unit supplier quote for an 8000-unit order, with the promise of placing the next order with the same supplier.

The normal supplier quotation process is set up to increase a buyer's discount with an increased volume order. It is a common enough 'carrot' for buyers to get a great price in exchange for future (or a more consistent number of) orders. Someone will always sell better in this equation.

The supplier can either sell you on a great volume deal, versus price cut, plus a promise of quality and after-sale service; or on a great price, versus first-time high price, plus a promise of a next sale.

In relationship-building terms, the warm handshake comes from a happy sell; the relationship is built from the delivery of the pluses.

The balance to strike is simple: A true relationship builder will not compromise the potentials of tomorrow to reap the benefit from being cheap today.

You could be dealing with music, food, financial services, or databases, everyday relationship building can still be applicable in any situation. Think Lego towers. These could very well be a future foundation for all the towers you build.

DIVERTED-TO-VOICEMAIL CALLS: The unrequited relationship.

We have all done it. At one time or another the red button is pressed on the mobile phone and the caller goes straight to voicemail. It isn't just about wrong timing. There are people in our busy business lives that we would much rather "deal with a little later...". There are such things as relationships in your own mind. Some people feel they have done enough favours, or inked enough contracts to warrant a relationship with someone they need.

Relationship building is not about buying your way in. This transparent short-term attitude can be seen where companies attempt to leverage relationships to a point where they are a pain to deal with.