Today, almost all markets are overflowing with goods. This oversupply makes the consumer very picky and more difficult to persuade to buy anything. In response to growing competition and the complexity of engaging the buyer in communication, cross-marketing is emerging. How to quickly and cheaply attract customers? This question torments marketers around the world. There is no single correct answer to it. But cross-marketing can solve a number of problems in attracting consumers, but there are a number of nuances in its application.
Cross marketing concept
Answering the question of what is cross-marketing, you need to remember that marketing is the activity of a company to promote goods or services in order to meet consumer needs and make a profit.
However, marketing effortsbecome more and more expensive, and their effectiveness is reduced due to the high information saturation of the consumer environment. Promotion specialists are trying to come up with new ways to reach the target audience, so the technology of cross-marketing, co-marketing or cross-marketing arises. Its essence lies in the accumulation of efforts to promote several companies within the framework of one communication program. Two or more manufacturers of goods or services in one advertising campaign affect a common target audience.
The History of Cross-Marketing
Cross-marketing, as a special promotion technology, emerged in the 90s of the 20th century, when traditional sales methods bring less and less results or require more and more investments. Then large companies in the United States decided to join forces to promote goods and received a great synergistic effect. Thus was born the concept of cross-promotion or cross-marketing, which took root very slowly in the commercial sphere, but at the beginning of the 21st century became a familiar technology for advertising certain goods and services. Today, this technique is poorly studied from the point of view of theory, but practical experience suggests that it has its undeniable advantages.
Cross Marketing Benefits
Thinking about who and how to conduct cross-marketing, it is worth determining the main advantages of this promotion method. The most obvious advantage of joint activities onpromotion is saving the advertising budget. The consumer receives a double benefit, so he responds to offers with great pleasure.
All this not only reduces costs, but also enhances communication efficiency. Another advantage of cross-marketing is the possibility of wide coverage of the target audience and access to new segments. Since each partner company engages in advertising activity with its target audiences, the recipients expand at the expense of the partner's audience.
When finding a worthy partner, cross-marketing can significantly improve your image, increase customer loy alty, and increase the number of brand-aware consumers. Cross-marketing campaigns inspire more confidence in the client, he transfers part of the ideas about a well-known company to its partner, thereby improving the image of this company. The consumer forms associative connections of partner firms, this greatly simplifies the memorization of information and gives a greater psychological effect.
Types of cross-marketing
Co-branded advertising campaigns are traditionally divided into:
- Tactical. Those who are limited in time and solve short-term problems. These usually include one-time partnership promotions.
- Strategic. Long-term, versatile cooperation between partner firms. Allows you to solve various problems, including in the field of image-making and branding.
Cross-cultural marketing is also distinguished as a kind of promotionin international markets. In this case, the resources of two or more countries are combined to advertise products. In its purest form, such promotion cannot be called cross-marketing, since cooperation is carried out within the framework of one brand. When cooperating between different countries, it is necessary to take into account cultural and linguistic differences so that the product receives the correct semantics in the new region. Often, for promotion in other countries, it is not enough just to translate advertising texts. Often it is necessary to develop new packaging and sometimes even change the name in order to create a positive image of the product.
You can divide cross-marketing activities to distribute roles between partners. They can be equal and then their common efforts allow achieving higher goals. For example, a company promoting an expensive brand of kitchen furniture may partner with a well-known brand of built-in appliances. The second option is an unequal relationship, when one brand is much more famous than the partner brand. In such cases, the contract is concluded in such a way as to balance the position and distribute the benefits in accordance with it.
Conditions for applying cross-marketing
Joint marketing activities require specific conditions to be met in order for promotional activities to be successful. The program of a co-branded advertising campaign is influenced by the goals pursued. Based on them, you should develop a promotion concept.
Thus, strategy and tactics determine cross-marketing. Examples, conditionswhich are taken into account can be divided into two groups: from the side of the initiator and from the side of the partner. The initiator must have a good idea of the partner's image and its target audience. The partner, in turn, must see the benefits and benefits of cooperation.
When planning a cross-marketing campaign, you should make sure that the target audiences of partners overlap, but do not completely coincide. The products offered should also have common ground, ideally satisfying some common need. There must be some benefit for the consumer from participating in the promotion, for example, he receives a discount or a gift. Partner products must be in the same price segment. It is not necessary to conduct a cross-marketing campaign, for example, for a Mercedes and some water from the village of Penkovo. The quality and level of goods must match.
Basic forms of cross-marketing
Cross-marketing can be presented in three main forms:
- Joint advertising campaign of partner products. In such events, partners act as equal customers of advertising. For example, the Coca-Cola brand ran a co-branding campaign with McDonald's under the slogan "Tastier Together".
- Joint bonus or discount programs. In such campaigns, the client, using the services of one company or buying one product, receives discounts or bonus points for a product of another brand. For example, Aeroflot issued a joint card with Sberbank, which accumulated points for transactions.
- Joint BTL events. A tasting, celebration or promotion can be carried out by two or more campaigns.
Cross Marketing Technology
Like any marketing activity, co-branding companies require a certain sequence of actions to be followed. Cross-marketing usually involves the following steps:
- determining goals: as in any co-branding marketing activity, you need to understand what should be the result;
- selection of partners: a very important and responsible stage that requires separate consideration;
- preparation for the event: at this stage, it is necessary to determine the resources, conduct motivational procedures for staff;
- development of a plan for a cross-marketing event and its coordination with partners: it is necessary to determine such campaign parameters as the volume of bases to be exchanged, the frequency of actions, the timing of the campaign, fines and bonuses, the development of a campaign scenario, the determination of those responsible for the implementation of the plan;
- implementation of a cross-marketing campaign;
- summarizing and evaluating the effectiveness of activities.
Search and evaluation of partners
Cross-marketing, in which partners play a key role, is based on the following principles:
- partners should not be competitors;
- products should also not compete with each other or replace each other, it is desirable that they be complementary;
- partners must intersectby target audiences;
- products must be in the same price segment.
Finding a partner is a very important and responsible step in co-branding. It is necessary to evaluate a potential partner according to the following parameters:
- real image, it must match the level of the initiating company;
- presence of a common target audience;
- presence of loyal consumers;
- fame;
- marketing activity.
This information will help you find a potential partner for cross-marketing campaigns.
Application of cross-marketing in different areas
Cross-marketing is not suitable for all products and areas. So it is difficult to imagine it in the B2B field, mainly such campaigns are designed for the end consumer. Such events are very effective in the segment of premium goods and services, provided that a partner of the proper level is found.
Such campaigns are excellent in promoting food products and various services. Most often today you can see the use of this technology in the restaurant, banking, insurance and tourism sectors, in the promotion of cars, clothing, household appliances.
Sociologists have calculated that the 500 largest companies in the world over the past 10 years have entered into more than 60 different affiliate programs. This contributes not only to joint advertising campaigns, but also to the release of new products.
Cross-marketing in tourism: limitations and opportunities
Cross-marketing, examples of which can be found in the tourism industry, todayis becoming a very popular technology. Co-branding in this field of service provision is possible at all levels. For example, when promoting airline tickets, you can combine efforts with services for finding and booking places to stay or with transfer services to the hotel.
Travel agencies and insurance companies cooperate very well, providing the client with a better service and enhancing each other's image. Difficulties in applying cross-marketing in tourism arise in connection with the search for a reliable partner. Today, clients trust travel agencies with great care, so it is worth cooperating only with trusted firms.
Global experience in cross-marketing
Cross-marketing, which offers can be found in a variety of areas, already has a long history. For example, quite a long and effective relationship has developed between the Sheraton hotel chain and Lufthansa Airlines. Procter and Gamble came up with an interesting move by launching a co-branding advertising campaign for Bosch washing machines and Calgon laundry detergents. Combining the efforts of air showrooms, credit and insurance organizations has already become a classic in cross-marketing.
