Cross-marketing with proper planning and organization has guaranteed advantages:
● increase in sales;
● expansion of the customer base;
● significant savings in advertising costs;
● improving the reputation of the company;
● increase brand awareness;
● increase customer loyalty.
However, despite the apparent simplicity, the organization of the project together with an advertising partner can turn into serious problems for the participants.
Therefore, it is important to consider a few simple rules:
1. Choose the right partners. It should not be your competitor, but your target audience should match. These may be manufacturers of related products or services, about the same price segment and with a positive reputation.
2. Mutual benefit for all participants. No need to agree to disadvantageous cooperation. It is important to soberly evaluate your own resources and capabilities of the partner company and conclude the most specific agreement.
3. Monitoring compliance with the terms of the contract on both sides.
4. Evaluation of effectiveness from cross-marketing. Monitoring and analytics of sales will let you know about the effectiveness of choosing a partner and conducting the campaign as a whole.
What are the formats of cross-marketing?
1. Mutual advertising
The simplest cost-effective way to interact and collaborate. Resources can be involved here: your own website, groups on social networks, an application for a mobile platform, a mailing list or a room where you conduct your business.
As an advertisement, there can be banners on the main page of the site, joint contests and draws on social networks, in-app advertising, joint viral video for YouTube.
Offline - placing informational stands in the premises, advertising leaflets and coupons or by joint efforts to create an art object, which is now considered almost the most popular way to attract the attention of customers.
2. Cross Promotion
No more than three companies participate in cross-promotions, as having more participants complicates the project.
This is the implementation of a common program to promote sales and increase brand awareness, can be implemented in a variety of formats and with a variety of partners. Regardless of the direction and "age" of the business.
Here, an exchange of consumers takes place, and the customer base expands, and the level of awareness of a product or service rises.
A significant bonus of cross-promotions is an increase in sales and savings on a marketing campaign.
3. Joint event
Organizing and conducting joint events can also be a great opportunity to increase company profits.
So, Intel, PepsiCo and DreamWorks Animation launched a 3D game on the eve of Super Bowl XLII:
● Intel debuted with its new Tru3D technology.
● When purchasing a PepsiCo SoBe Lifewater, the customer received 3D glasses as a gift.
● As a result, 125 million pairs of glasses with new Intel technology were distributed. And they came in handy precisely in the climax of the game, when commercials from Dreamwork and PepsiCo were broadcast, requiring viewers to watch them in Intel's 3D glasses.
This marketing move has long been remembered by the American audience, as well as by companies that were able to hook viewers, while sharing the cost of advertising in one of the most rated broadcasts.
4. Release of co-branding product
Creating a common product is the highest level of integration of the marketing strategies of the two companies.
A co-branding product can be produced both under a new brand, and under the combination of two "names" of manufacturing companies.
The scandalous example of Burger King and Durex. Within the framework of cooperation, it was planned to produce a trial batch of condoms with the taste of nuggets. The popular action of the restaurant chain “9 nuggets for 69 rubles” was taken as the basis.
The Durex pack will have the same number of condoms at the same cost; they will be distributed at Burger King restaurants.
5. Loyalty program
Mutually beneficial cooperation of banks with retailers and manufacturers of products and services has led to the emergence and development of loyalty programs. The goal of such programs is to encourage customers to use cards for settlements and payments, and not just to receive a salary and withdraw it immediately.
Part of the invested funds is returned through the provision of acquiring services, part - at the expense of partners whose turnover and, consequently, profit is growing.
In conclusion, it is worth noting that interaction with other companies is one of the highest stages of innovative development of the company.
Cross - marketing creates new shades of consumer perception of the brand image. Therefore, analysts predict a boom in cross-marketing promotions and co-branding for the near future.