Cross marketing

Cross marketing
See also

Cross Marketing- it's a type of Marketing Strategy in which at least two enterprises cooperate to promote their products or services together. There is no strict definition of this occurrence because cross-marketing appears in different forms and goals [1]. Co-sponsoring, Cross-promotion, Cross-selling, and Co-branding are particular forms of cross-marketing [2]

Goals of Cross Marketing

The main goal of cross-marketing is simply that both partners benefit from it. Profits that can be gained are faster-achieved objectives and reaching the wider group of potential customers[3]. We must know very well our target group to find a product or company that targets our customer group.

Conditions for Cross Marketing

To the successful application of cross marketing strategy we have to meet some conditions:

  • Products or services should be similar to each other
  • Subjects of promotion shouldn't be competitive for yourself- so-called complementary for yourself
  • Promoted products or services should have something in common, to target the same customers

The most important and key in cross-marketing is that the company should correctly choose partners. When entering into a deal, partners must rethink their strategy. Establish who takes over what obligations, how they will be accounted and what the profits will be allocated to. Each step should be monitored and evaluated in terms of achieved result. It is important to remark that Cross-marketing works the best when both partners have the same power and the partner does not pull the other up or down.

Benefits of Cross Marketing

The most common benefits:

  • Increasing number of customers - brands that perfectly match and complement each other naturally and their buyer groups dovetail, so they have a very big chance of increasing their customer base
  • Lovering costs - companies cooperating reduce promoting costs
  • Saving cash - savings (profit) can be granted for the development of a company's products or services
  • Strengthening the credibility and effectiveness of the company
  • Increasing sales ratings

Cross marketing is a good concept for any company. In every industry, cross-marketing can exist to promote products together with another company.

Example of Cross Marketing

An example of such a system could be seen very often in the food sector, some producents brand their products with logos of other companies. This is to attract the company's customers from the logo to try a new product. For example, a joint action of Kinder Bueno and Multikino, the rules are simple- buy 3 Kinder Bueno's and go to the cinema for only 12 zlotych ( normal price starts from 18 zlotych). Ferrero company with the help of Multikino did a big promotion action with TV spots, billboards, and leaflets. They made even lottery with scooters in the prize pool. There was only one goal- If you buy this candy, you can go get a cheap ticket to the cinema. In this way, Ferrero increased the selling of Kinder Bueno's and Multikino get a huge promotion with low costs.

References

Footnotes

  1. Y. Koppen, 2009 P.5
  2. David L. Kurtz, H. F. MacKenzie, Kim Snow. p521
  3. Y. Koppen, 2009 P.5

Author: Klaudia Kazienko