UNIT 3.3 - Joint Venture Marketing

Question 1

4 types of Joint Venture

Answer 1

1. Temporary Joint Venture
2. International Joint Venture
3. Nonprofit Joint Venture
4. Commercial Joint Venture

Question 2

3 Advantages of Joint Venture Marketing

Answer 2

1. Diversification
   Allows parties to diversify their own businesses. Helps to reduce a participant’s business risk across its product or service lines.
2. Access to New Markets
   Enables participants to access geographic or high-growth markets. Parties are able to pool their access to suppliers or customers.
3. Sharing Business Risks
   Enables participants to share business risk of creating a new product or service or entering into or expanding a business.

Question 3

3 Disadvantages of Joint Venture Marketing

Answer 3

1. Partners do not provide enough support or leadership in the early stage.
2. The objectives of the venture are not 100% clear and communicated to everyone involved.
3. Different cultures and management styles results in poor integration and co-operations.