Cross marketing

Cross marketing
See also
Market expansion Product line pricing Importance of marketing strategy Aggregator model Competitive Pricing Conglomerate diversification Promotional campaign Special offering Customer benefits

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 . Co-sponsoring, Cross-promotion, Cross-selling, and Co-branding are particular forms of cross-marketing

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. 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.

Limitations of Cross marketing

Cross marketing can be an effective way to reach a larger audience, but there are some limitations to be aware of. These include:

• Limited control - When two companies are involved in a cross marketing campaign, it is difficult to maintain control over product or service messaging, as both companies have to agree on the messaging and design.
• Increased competition - Cross marketing can increase competition between the companies involved, as they are promoting their products or services together. This can lead to confusion among customers who are trying to decide which company to purchase from.
• High cost - Cross marketing campaigns can be costly, as they require resources from both companies involved. This can be a problem if one company is not as financially capable as the other.
• Limited reach - Cross marketing campaigns can only reach a limited audience, as they are typically centered around a specific product or service. This can limit the reach of the campaign and may not be suitable for companies who need to reach a larger audience.

Other approaches related to Cross marketing

Cross marketing is a type of marketing strategy in which two or more enterprises cooperate to promote their products or services together. Other approaches related to cross marketing include:

• Co-branding – combining two or more brands together to create a unique product or service.
• Joint ventures – two or more companies join forces to create a new product or service.
• Affiliate marketing – promoting products or services of another business for a commission.
• Referral programs – encouraging customers to refer their friends or family to purchase products or services from another business.
• Sponsorship – a company pays to have its name associated with an event, organization, or celebrity.

In summary, cross marketing is a type of marketing strategy which is often complemented by other approaches such as co-branding, joint ventures, affiliate marketing, referral programs, and sponsorship. All of these approaches aim to increase exposure for both businesses involved, creating mutually beneficial outcomes.

References

• Glogowski M.,Muszalik C., Mier T., (2006), Cross Marketing in Food Sector, (p.2-6)
• Jakschik S., (2009), Cross Marketing mit dem Öffentlichen Sektor als strategischer Ansatz für die Markenführung von Konsumgüterherstellern
• Koppen Y., (2009), The Potential of Cross-Marketing for the Destination Management Organizations of New York City and New York State
• Kurtz David L. , MacKenzie H. F.,Snow K., Contemporary Marketing
• Riley-Magnus D., (2013), Cross Marketing Magic for Authors: Developing New Avenues for Advanced Book Marketing
• Rohm A. , Gao T. , Sultan F., Pagani M., (2012), Brand in the hand: A cross-market investigation of consumer acceptance of mobile marketing

Footnotes

Author: Klaudia Kazienko