Today, almost all markets are overcrowdedgoods. Such an excess of supply makes the consumer very legible and it is increasingly difficult to incline to any purchase. Cross-marketing appears in response to growing competition and the increasing involvement of the buyer in communication. How quickly and cheaply to attract customers? This question torments marketers around the world. There is no one right answer to it. But cross-marketing is able to solve a number of problems in attracting consumers, but there are a number of nuances in its application.
The concept of cross-marketing
Answering the question, what is cross-marketing,we need to remember that marketing is the company's activity to promote goods or services in order to meet the needs of the consumer and make profit.
However, marketing efforts are becomingmore costly, and their effectiveness is reduced because of the high information saturation of the consumer environment. The promotion specialists try to come up with new ways to reach the target audience, so there is a technology of cross-marketing, co-marketing or cross-marketing. Its essence is to accumulate efforts to promote several companies within the same communication program. Two or more manufacturers of goods or services in the same advertising campaign affect the overall target audience.
The history of the emergence of cross-marketing
Cross-marketing as a special technologypromotion, arises in the 90s of the 20th century, when traditional methods of sales bring ever less results or require more and more investments. Then large companies in the United States decided to join efforts to promote goods and received a great synergistic effect. Thus, the concept of cross-promotion or cross-marketing was born, which very slowly took root in the commercial sphere, but at the beginning of the 21st century it became a habitual technology for advertising certain goods and services. Today, this technique is poorly understood from the theoretical point of view, but practical experience allows us to say that it has its undoubted merits.
Advantages of cross-marketing
Thinking about who and how to conductcross-marketing, it is worth determining the main advantages of this promotion method. The most obvious plus of joint promotional activities is the saving of the advertising budget. The consumer receives a double benefit, therefore, with great pleasure responds to offers.
All this not only reduces costs, but also increaseseffectiveness of communication. Another advantage of cross-marketing is the possibility of wide coverage of the target audience and access to new segments. As each partner company enters into advertising activity with its target audience, the addressees are extended at the expense of the partner's audience.
When finding a worthy partnercross-marketing allows you to significantly improve your image, increase customer loyalty, increase the number of consumers aware of the brand. Cross-marketing campaigns have more confidence in the client, it transfers part of the concepts of well-known company on her partner, thus the image of this company improves. At the consumer associative connections of partner firms are formed, this greatly simplifies the memorization of information and gives a greater psychological effect.
Types of cross-marketing
Co-branding advertising campaigns are traditionally divided into:
- Tactical. Those that are limited in time and solve short-term tasks. These are usually referred to as one-off partnership actions.
- Strategic. Long-term, multifaceted cooperation between partner firms. Allows to solve various tasks, including in the field of image-making and branding.
Also highlight cross-cultural marketing, asa kind of promotion in international markets. In this case, the resources of two or more countries are pooled for the promotion of products. In its pure form, such promotion can not be called cross-marketing, as cooperation is conducted within the same brand. With the cooperation of different countries, it is necessary to take into account cultural and linguistic differences, so that the goods receive the correct semantics in the new region. Often for promotion in other countries it is not enough simply to translate advertising texts. It is often necessary to develop a new package and sometimes even change the name so that the image of the product is positive.
You can divide cross-marketing activities bydistribution of roles between partners. They can be equal in rights and then their common efforts allow achieving higher goals. For example, a company that promotes an expensive brand of kitchen furniture can take in partners a well-known brand of built-in appliances. The second option is unequal relations, when one brand is much more famous than its partner brand. In such cases, the contract is concluded in such a way as to balance the situation and distribute the benefits in accordance with it.
Conditions for applying cross-marketing
Joint marketing activities requireadherence to special conditions, so that the promotion activities will be successful. The program of the co-branding advertising campaign is influenced by the objectives pursued. Already proceeding from them, it is necessary to develop the concept of promotion.
Thus, strategy and tactics determinecross marketing. Examples, conditions that are taken into account, can be divided into two groups: on the part of the initiator and on the part of the partner. The initiator should be well aware of the image of the partner and his target audience. The partner, in turn, must see the benefits and benefits of cooperation.
Planning a cross-marketing campaign shouldmake sure that the target audience of partners overlap, but do not coincide completely. The offered goods should also have points of contact, ideally, to satisfy some common need. For the consumer there should be some kind of benefit from participating in the action, for example, he gets 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 the goods must correspond to each other.
Basic forms of cross-marketing
Cross-marketing can be represented in three main forms:
- Joint advertising campaign for partner products.In such events, partners act as equal customers of advertising. For example, the Coca-Cola brand conducted a co-branding campaign with McDonald's under the slogan "Together tastier".
- Joint bonus or discount programs.In such campaigns, the client, using the services of one firm or buying one product, receives discounts or bonus points for the goods of another brand. For example, Aeroflot issued a joint card with Sberbank, which accumulated points for transactions.
- Joint BTL-events. Tasting, celebration or promotion can be carried out by two or more campaigns.
Like any marketing event, co-branding companies require a certain sequence of actions. Cross-marketing usually includes the following stages:
- definition of goals: as in any marketing event in co-branding, one must understand what should result as a result;
- choice of partners: very important and responsible stage, which requires separate consideration;
- preparation for the event: at this stage it is necessary to determine the resources, conduct motivational procedures for the staff;
- development of a cross-marketing planand its coordination with partners: it is necessary to define such parameters of the campaign as the volume of bases for the exchange, the frequency of actions, the timing of the campaign, fines and bonuses, the development of the campaign scenario, the identification of those responsible for implementing the plan;
- implementation of cross-marketing campaign;
- summarizing and evaluating the effectiveness of activities.
Partner search and evaluation
Cross-marketing, the partners in which play a key role, is built on the following principles:
- partners should not be competitors;
- goods also do not have to compete with each other or replace each other, it is desirable that they are complementary;
- partners must cross the target audience;
- goods must be in the same price segment.
Partner search is a very important and crucial stage in co-branding. Evaluate a potential partner is necessary for the following parameters:
- a real image, it must correspond to the level of the initiating company;
- presence of a common target audience;
- presence of loyal consumers;
- 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 andspheres. So it is difficult to imagine in the B2B field, mostly such campaigns are designed for the end user. Such activities are very effective in the segment of premium goods and services, provided that a partner of the right level is found.
Such campaigns show themselves perfectly inpromotion of food and various services. Most often today you can see the application of this technology in the restaurant, banking, insurance and tourism sector, in the promotion of cars, clothing, household appliances.
Sociologists estimate that the 500 largest companiesthe world over the past 10 years have joined 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 beDiscover in the field of tourism, today is becoming a very popular technology. Co-branding in this field of service delivery is possible at all levels. For example, when promoting air tickets, you can combine efforts with the services of searching and booking accommodation or with the services of a transfer to the hotel.
Travel agencies come together very wellwith insurance companies, providing the client with a better service and enhancing each other’s image. Difficulties in applying cross-marketing in tourism arise from the search for a reliable partner. Today, customers believe travel agencies with great caution, so it is worth cooperating only with reliable companies.
Worldwide Cross-Marketing Experience
Cross-marketing, which offersmeet in many different fields, already has a long history. For example, fairly long and effective relationships have developed between the Sheraton hotel chain and Lufthansa Airlines. An interesting course came up with the company Procter and Gamble, launching a co-branding advertising campaign for Bosch washing machines and Kalgon detergent. Combining the efforts of air shows, credit and insurance organizations has already become a classic in cross-marketing.