How to organize a cross-promo mailing, and what results will it bring? Co-marketing. How to make cooperation profitable Cross promotion examples

Today, almost all markets are overflowing with goods. This oversupply makes the consumer very selective 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.

The concept of cross-marketing

When answering the question of what cross-marketing is, 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 efforts are becoming 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 this is how 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, arises in the 90s of the 20th century, when traditional ones 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.

Benefits of Cross Marketing

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 promotional activities is the savings in 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 increases the effectiveness of communication. 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 loyalty, 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 links of partner firms, this greatly simplifies the memorization of information and gives a greater psychological effect.

Types of cross marketing

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 promotion in 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. It is often necessary to develop new packaging and sometimes even change the name so that the image of the product is positive.

You can divide cross-marketing activities according to the distribution of 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 the promotional activity 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, the conditions that 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 advantages 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 correspond to each other.

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 conducted 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. holiday or action 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 includes the following steps:

definition of goals: as in any marketing event in co-branding, you need to understand what should be the result;
choice 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 the 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 identification of those responsible for the implementation of the plan;
implementation of a cross-marketing campaign;
debriefing and 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;
goods also should not compete with each other or replace each other, it is desirable that they be complementary;
partners should overlap in target audiences;
Products must be in the same price segment.

Cross-marketing is a mutually beneficial form of cooperation in which several companies jointly promote complementary products or engage in mutual PR. It is needed to expand the customer base, increase the number of sales, increase brand loyalty, and increase the average check. Cross-marketing works simply: several companies whose target audiences overlap promote each other's products. Due to this, marketing costs are optimized, and the effect of cross-marketing is better compared to the results of other tools.

In this article, we will tell you what cross-marketing is, why it is so popular and how to use it. We will also offer several successful examples of using such a promotion strategy.

Types and benefits of cross-marketing

Types of cross marketing

Tactical cross-marketing.This is a short-term one-time cooperation of two or more companies. For example, a one-time promotion designed for certain holidays or just a limited time. One company can attract an unlimited number of partners to promote its product. For example, this format is especially relevant for Instagram, where partners promote each other with the help of sweepstakes.

Strategic cross marketing. This is a long-term cooperation aimed at solving a number of problems. Most often, only two brands participate in strategic cross-marketing, less often three brands. The main concept is the joint promotion of products. This format is relevant for a long transaction cycle. For example, a construction company that builds low-rise buildings may offer the services of partner cadastral engineers.

Cross cultural marketing. It can also be tactical and strategic. The main difference from the other two types of instrument is that companies or brands from different countries become partners.

There are companies on the market that use exclusively tactical or strategic cross-marketing. In the first case, the brand has many partners, and promotions can be repeated at a given frequency. In the second case, there are only one or two partners, and the goods are promoted inseparably from the partner's product, and often consumers perceive the products only together.

Benefits of Cross Marketing

Cost optimization - your product will be promoted by another company, just like you will be promoting their product. Therefore, the cost of promotional activities is reduced significantly.
Increase the rating and loyalty of the target audience. The sales market is dominated by companies that have a large number of partners: this indirectly shows that they can be trusted. This increases the loyalty of the target audience.
Fast result. Sales growth, depending on the format of cooperation, can be noted on the first day after the launch of cross-marketing.
Increase in sales and average check. Most often, cross-marketing is built in such a way that consumers also receive their benefits. Therefore, the number of sales is growing, the average check is increasing, and new positive reviews are additionally appearing.
High efficiency. Cross-marketing is usually more effective than standard advertising, because it reduces the cost of attracting new customers, starts working immediately after the launch of the chosen tool, and usually has a positive effect on the company's reputation as a whole.

How to find partners

The right choice of partners for cross-marketing is the main guarantee of its success. Think about what products will complement your product well. For example, if you only produce bicycles, start a partnership with a manufacturer of helmets and other protection or sportswear. If you are promoting selfie sticks, offer cooperation to retail chains that sell smartphones. If you are engaged in the promotion of service stations, sell accessories of a certain company on the spot: for example, discuss cooperation with suppliers of motor oils in order to offer their products primarily for a certain benefit for yourself and the consumer.

There are several rules in choosing a partner for cross-marketing. Follow to:

The product did not compete. It makes no sense to promote two smartphones from different manufacturers, different clothing brands or two cars from different concerns.
Your product and the partner's product were in the same price segment. Roughly speaking, you should not offer gold bars to someone who buys seeds in the market. It is necessary that the target audience of your company and partners have an intersection at least in the price segment.
The products complement each other. It makes no sense to promote jewelry and spinning rods at the same time: the former are more designed for women, the latter for men. But to offer, in addition to a stylish leather bag, a watch - a partner's product - is quite appropriate.
The target audience overlapped. Find a few more common ground besides the price. It makes no sense to promote luxury cars and ATVs together, because they have different target audiences: the former prefer the city, the latter prefer the space behind it.

Consider which company meets all four criteria above. Work out all possible options for cooperation and offer her a partnership - if cross-marketing brings benefits to both brands, in most cases the company will agree to work with you.

Use one of several options for cooperation, which the partner will agree to and which will be convenient for you. For example, you can:

Run a joint contest. This works in social networks: users are increasingly participating in different draws, and holding a joint contest will allow all organizers to increase brand loyalty.

Run promotions. You can simply mutually offer partners' products to customers. For example, they bought a laptop from you, and you offered to install an antivirus on it. For an additional incentive, you can offer a discount on a partner's product - he will do the same.

Order joint advertising. This is an idea for those who do not have enough money for expensive advertising. You can combine the budget of partners and order advertising for 2-3 products at once: for example, come up with a video whose participant will use 2-3 products at the same time.

Start co-production. Create a completely new product with your partners, which will have a little bit from each brand.

Develop a loyalty program. For example, offering customers the benefit of using your product and a partner's product - this is how co-branded cards work. As in a promotion, you can give a discount on a partner's products for an order, as well as offer bonus points, free consultations, participation in private events - everything that is enough for imagination and opportunities.

Best Examples of Cross Marketing

Let's look at 3 good collaboration examples.

world famous network Burger King teamed up with World of Tanks. The burger chain offered premium vehicles, in-game currency, a premium account, and many other interesting prizes. The audiences of the products partially overlap, and the consumer receives a significant benefit - free premium chips in the game.

A fairly well-known example in Russia - chain of jewelry stores SUNLIGHT. She works with more than 30 partners. For example, it holds a promotion: it offers free gifts when buying a certain amount from partners. So the consumer also benefits, and all participants in cross-marketing - a plus for reputation.

Lamoda online store also pleases buyers with cross-marketing. He often launches complex promotions involving 2-3 partners. Consumers also benefit, participants - increased loyalty and increased sales. For example, in this example - the cooperation of the TV channel, the French brand, the M.Video store and the online store itself.

Do you think cross-marketing is appropriate for promoting different products? And do you use it? Share your opinion in the comments!

Cross-marketing is the latest method of product promotion. Conducted jointly by several companies to increase sales of interested firms.

The advertised goods or groups of goods are complementary (accessories, additional devices) or related (the goods are necessary for the use of another goods). Advertising is also carried out to promote homogeneous products by many manufacturers.

An example of cross-marketing is the promotion of sales of SIM cards and phones, when, when connecting to a cellular operator, it is offered to buy a phone at a reduced price. Another example is the advertisement of washing tablets for dishwashers in household appliance stores or the promotion of milk sales in the region by different farms.

Cross marketing activities

Stock.
Prize draws.
Fairs, exhibitions with special offers.
Promotions.
Holiday lotteries.
Bonus advertising.
Loyalty programs.
Cross-partners with favorable conditions.
Discount programs.
Direct marketing.

The history of cross-marketing

Cross-marketing or cross-marketing originated in the United States in the early 90s (20th century), when the market was oversaturated with a variety of goods, and the consumer became more picky and picky. However, the concept of joint sales (co-marketing) was developed during the Great Depression (30s). Unconfirmed sources claim the use of cross-tech by Benjamin Franklin, a well-known American politician, innovator and inventor.

The heyday of cross-selling was the end of the 20th century. Modern science positions cross-marketing as an inevitable trend.

Conditions for applying cross-marketing

The most popular cross-marketing is becoming:

in case of insufficient financial resources (partner assistance);
in the presence of a cross-audience (target consumers);
if necessary, raise the image of the product at the expense of a well-known manufacturer;
in the joint production of the main and related goods;
when products of different groups have a common need;
if the buyer sees a benefit in purchasing these goods;
when heterogeneous products are in the same price and quality segment.

Benefits of Cross Marketing

Cross-marketing has obvious benefits.

Savings in marketing activities.
Joint partnerships with larger manufacturers.
Benefit from cross selling.
Opportunity to significantly increase sales.
Target audience coverage (interested) and access to new markets.
Creation of a favorable image and promotion of the brand.
Bribing the consumer with trust and the formation of associative ties with him.
A quick psychological trick that offers all the necessary goods or services in addition to the main purchase.

Types of cross marketing

Tactical (one-time cooperation).
Strategic (long-term partnership).
Cultural (international).
Equal (cooperation of equally well-known companies).
Unequal (cooperation with benefits both for the branded company and for the less recognizable one).
Branding.

Cross-marketing technologies or tricks

Providing discounts on cards.
Publication of cross-references in electronic media and social networks.
Provision of a bonus product (gift, discount certificate, individual promotion).
The receipt of the goods is offered by exchange or as a gift.
Application of trial samples of another company upon purchase.
Sponsorship of competitions, festive events, lotteries.
Providing unique conditions for the luxury consumer.
Showcase related products.
Distribution of leaflets, booklets.
Joint advertising on TV.
The offer of the assortment in online stores in the column "frequently buy with this".

Cross marketing tools

Online cross-marketing "cost per action" or "pay per action" (CPA). Companies pay for the number of attracted consumers who follow the link of the Internet site to the advertised site and buy the product. This includes: banner ads, popups, push notifications, native ads.
A joint advertising campaign (advertising) is carried out through various channels (TV, radio, media, Internet, fairs).
A joint competition involves attracting a wide audience. By investing in the implementation of an idea, manufacturers acquire potential customers.
Joint events are held taking into account the specifics of the goods. Usually these are fairs, holidays, tastings, master classes, exhibitions, conferences, etc.
Joint production is carried out in conditions where goods do not compete with each other. The need for combined production is appropriate for products with accessories and removable parts (parts), as well as for ease of transportation. Sometimes businesses come together to develop a new product line.
Co-branded cards offer the client to take advantage of the bonus (points, discounts) that are valid with the company's partners.
The loyalty program is thought out for a certain category of consumers in order to force them to buy. At the same time, an individual approach and care for the client are emphasized (discount on partner's goods, etc.).

Stages of drawing up a plan for cross-marketing

To plan your cross-marketing activities, use the action plan, which includes:

Search for partners producing a related product or service who agree to such cooperation.
Staff training and education.
Selection of promotional goods and development of a special offer for a partner.
Creation of a database of cross-companies that responded to the terms of the transaction.
Final verification of information about partners, conditions of a cross-marketing campaign, methods of submitting information.

How and where to find a partner for a cross-marketing program

Initially, study the list of partners (by city, region) with a similar target audience.
Send the terms of cooperation or commercial offer to the representative of the company.
Companies are searched through:

City portals, forums, bulletin boards.
Internet (browser requests).
Company directories (published annually).
outdoor advertising.
Newspapers and magazines.
Search in social networks (filters).
Google Maps, Yandex Maps.
Business connections and relationships.

Cross-marketing business proposal

A commercial offer for affiliate cross-marketing is presented in the form of a short report or presentation. The information reflects the essence of the offer and the benefit for the partner.

The points of the commercial offer are:

description of the company and the advertised product;
characteristics of the cross-project;
cost and terms of implementation;
training materials (calculations, graphs, images);
program effectiveness;
partner benefit;
a mechanism for coordinating actions;
data channels.

A commercial offer is drawn up based on the existing project plan (short, informative). Resumes are sent by e-mail, fax or delivered in person. Depending on the scale of the action, offers are sent in bulk or as soon as a response is received from firms.

If the partner is interested in cooperation, they additionally send a project release and agree on negotiations.

How to write a cross marketing contract

A cross-marketing agreement is drawn up according to a standard form, taking into account the specifics of the agreement. It specifies:

name of partners;
their certificates of registration as legal entities or individual entrepreneurs;
the name of the groups of goods participating in the promotion;
goals of cross-marketing activities (general, individual, others);
whether goods are provided for sale and the timing of the return of part of the profit;
conditions for providing assistance to partners;
rights and obligations;
nuances of conducting common affairs (mandatory meetings, negotiations);
terms and responsibilities under the agreement.

Examples of goods / services with a similar target audience

Cross marketing in tourism

Tourists are the most solvent audience. Cross-companies in the field of tourism offer various promotions and advertising.

They offer cheap hotels.
Advertise beach accessories, glasses, swimwear, suitcases, etc.
They provide points when buying air tickets (for which a free ticket is purchased in the future).
They promote a healthy lifestyle, ideals of harmony and beauty.
Inform customers about great deals on tours, hotel reservations, convenient flights.

Tourists are often faced with an offer to buy an Upsell product, which is a kind of improvement on a perfect purchase. Such goods include excursions, services of guides, photographers, medical procedures and massages, transfers, etc.

Cross-marketing in the restaurant business

The restaurant business has a slightly different cross-partnership option. Any audience is suitable. Catering companies work closely with suppliers of products, sauces, spices, etc. Signature dishes are famous for their presentation, the skill of the chef, and special ingredients. When ordering them, they usually receive a “compliment from the chef” or a discount on a cocktail or dessert.

Restaurants also hold joint cross-character events. Basically, these are discount cards that operate in 2 or more cafes, bars, bistros.

Catering enterprises cooperate with organizers of festive events, sports competitions, artists, DJs, vocal performers. Sometimes the campaign of the "face of the company", a well-known and respected figure, becomes a cross-PR campaign.

On Internet sites, you can often find bonus codes, discount coupons and promotions of restaurants that cooperate with non-target consumers: users of online games, the Internet and social networks, clothing buyers, customers of holiday services and goods.

Basically, restaurants cooperate with shopping centers, travel agencies, hotels, beauty salons, radio stations. When organizing children's parties, coupons and discounts for animation and entertainment services are widely used.

The target audience is sought in zoos, cinemas, educational institutions, oceanariums, and children's exhibitions.

Restaurant marketing is widely used in the organization of professional holidays or celebrations (wedding companies, gift and souvenir shops, leisure companies).

Joint cross-marketing with fitness clubs

The audience of fitness clubs is diverse.

Health food restaurant patrons.
Car owners.
security structures.
Using the services of beauty salons and medical centers.
Visitors to salons and beauty parlors.
Buyers of sporting goods and equipment.
People involved in sports clubs or attending sports centers.

The audience is also notified within the office environment through information leaflets. A small part is attracted through various stores through promotions.

How to run a cross-marketing promotion

Choose 1st partner so as not to scatter the attention of the consumer.
Choose the format of a cross-marketing event (advertising in a store, on the Internet, and in crowded places, mailing).
Develop a project (advertising materials, conditions for buyers).
Involve project developers, typographical works, Internet designers, programmers, IT managers.
Deliver samples, flyers, cards, coupons, promotions, or merchandise to the point of sale.

How to use promotions to control customer purchases

To begin with, determine the volume of promotional goods or the timing of the promotion.

Control over purchases is carried out with the help of periodic reports and electronic means of commerce (software, cash desk, warehouse accounting programs).

In the online space, control is carried out using special software tools that control the number of clicks on links and other attributes.

At points of sale, the buying process is accompanied by trained consultants and managers. They monitor the correct display of goods, in many cases they make a purchase decision with insufficient knowledge of the buyer about the product and its properties. It is also advised to purchase products if you have your own experience or a profitable promotion.

The top management for running a cross-marketing event rests on the shoulders of the chief marketer and initiators.

How to incentivize stock sales

Use additional marketing tools to increase the number of promotional sales.

Distribution of invitation leaflets.
Placement of advertisements.
Offering more favorable purchase conditions (gradation of bonuses depending on the purchase price, the number of purchases, etc.).
Consulting on the promotion at a meeting at the point of sale (summing up the client, informing).
Control over the availability of promotional materials, goods.
Adequate behavior of employees in relation to a simple consumer (competent presentation of information).

What mistakes are made when organizing cross-marketing

Select partners with competing services (fitness center and yoga center).
They use btl-technologies (luxury) to promote goods of different price points (expensive kitchen furniture and a discount on a set of simple pans).
They do not take into account the consumer's vision for the action (irrelevance, going beyond the reasonable, unaesthetic, illiteracy, and everything that "hurts the eye").
Do not use special identification means (clothes, branded accessories).
Sale-promotion is planned and carried out by people who are far from sales.
Do not indicate the timing of the action.

How to conduct an event so that there are no controversial issues

You should conclude an agreement with a partner, prescribe all the nuances of joint actions, as well as rights and obligations. With a competent approach to business, controversial issues arise only at the stage of interaction with the consumer (defective goods, insufficient awareness of the conditions of the competition, promotions).

How is the cost of cross-marketing calculated?

The calculation of the cost per share directly depends on the expected profit. If the company's goal is simply to attract consumers, they rely on reserves. Each item of expenditure is planned when drafting the project:

expenses for prizes, gifts, discounts;
employee remuneration costs;
expenses for advertising materials or electronic Promo;
transport costs;
costs for consumables, probes, exhibition samples;
clearance costs.

Cross-channel marketing results

Increase in sales of retailers (15% on average).
Raising the image of manufacturers (sales growth in the future).
Brand recognition as a result of the use of various advertising channels.
The ability to identify promising areas of advertising.

How to calculate the return on a stock

The effectiveness of the action is obtained using indicators:

1. ROMI (Return on Marketing Investment) or return on investment (D-R) / R

D is the income from the share.
P is the cost of holding the action.
If the formula total is less than or equal to 1, the promotion is ineffective.

Cha - the number of checks for the stock.
N is the total number of checks.
The higher the percentage of checks, the better the action was organized.

3. Analysis of the cost of attracting (returning) a guest S/A

The smaller the amount of rubles spent on one purchase, the cheaper the client is.

4. Profit D-R (as a rule, unprofitable shares of companies are not observed).

5. The effectiveness of cross-marketing is evaluated by comparing profits in promotional and non-promotional periods.

World experience in cross-marketing

Cross-marketing is used by large companies, as well as network structures. It is common in the banking, insurance, tourism sectors, as well as in the sale of goods and services in the automotive industry, furniture and textile industries, catering establishments, enterprises manufacturing equipment and household appliances. Cross-selling is rare in crafts, private manufacturers, and B2B sales.

Not really

Co-marketing technologies, or joint marketing, came to Russia and became widespread thanks to the introduction of the experience of US promotion specialists. This technology helps to communicate with potential buyers as efficiently as possible, using many formats and channels. As Western marketers say, cross-marketing allows you to freely distribute information about the company and do it as efficiently as possible.

To begin with, let's figure out what co-marketing is and for this we give a definition from Wikipedia:

Co-marketing(from English co-marketing) or joint marketing is the joint management of the creation of services and goods, as well as the mechanisms for their implementation on the market, which are a single complex process with common goals and objectives. In a narrower sense, co-marketing is seen as a formal relationship between two or more business structures that jointly sell goods on the market.

The power of cross-promotion has certainly been understood long before today. The period of development of mutually beneficial cooperation between entrepreneurs is called the Great Depression in the United States. One source indicates that co-marketing was used even earlier, more than 200 years ago, when Benjamin Franklin applied it in his practice. In early editions of Poor Richard's Almanac, readers could take advantage of special coupons from various merchants. Ben apparently felt that discount coupons added value to his publication and made it easier to sell. In turn, the shopkeepers received a steady stream of customers.

Benefits of co-marketing

There are a number of undeniable advantages that each of the parties receives in the process of co-marketing cooperation. The most significant of these is the reduction of advertising or promotion costs. We can say that joint marketing activity is a new advertising tool, the advantage of which is the absence of monthly bills. Considering the cost of a contact in relation to the costs and resulting traffic of new customers, co-marketing is often referred to as free advertising. And such a concept is attractive to most business owners.

In addition to the low cost, co-marketing has many other attractive advantages.

Possibility to increase the customer base in a short time. Any form of co-marketing cooperation - a joint action, the creation of a common product or the implementation of a coalition loyalty program - is built on the fact that it allows the exchange of customers between project participants.
Increase in sales and the size of the average check. Joint activities are structured in such a way as to encourage larger purchases or the purchase of more expensive products.
Opportunity to use new communication channels and advertising opportunities of partners.
Creation of a unique selling proposition. Thanks to a partnership with another company, you can offer the client a solution to his problem, create more profitable and attractive conditions for the purchase, or distinguish your product from the background of similar ones.
The opportunity to give the brand a new shade. For a small company, partnering with a well-known firm can help transfer positive associations from a stronger, more successful brand to your own. For a well-known corporation, co-marketing opens up the opportunity to present the company from a new perspective, to give it a different “hue” or “sound”.
Additional PR.

Many successful examples of co-marketing allow us to conclude that the cooperation of companies is always simple. But it's not. Before starting joint projects, it is necessary to carefully study all the subtleties. Cross-promotion is a fairly complex marketing tool with a very low tolerance for abuse. On the other hand, when used correctly, it can significantly increase the company's profits.

Basic rules of cross-marketing

What needs to be done in order for the cross-promotion to be successful and bring the benefits that the entrepreneur is counting on? There are a number of unspoken rules that should be followed when preparing and conducting a joint action.

Choose companies that have a similar audience as partners.
Promote products or services that complement each other.
Use products of the same price segment in a cross-promotion.
The success of a partnership often depends on the company's ability to deliver value to your program or partnership proposal.
It is believed that it is not worth merging with competitors, since there is a high probability of using the partner's corporate information. At the same time, competing companies, having united, get a stronger place in the market and can form an opposition to more successful companies.

Types of cross marketing

Co-marketing or co-marketing can take a wide variety of forms: joint events, production organization, mutual distribution of newsletters, referral mechanisms, discount offers, etc.

Cross promo

In its simplest sense, cross-promotion is a marketing program focused on inviting customers to purchase a related product. For example, a customer who purchases a shirt may be given a coupon for a pair of pants at a nearby store, or a customer who purchases a computer program may receive an email offering to purchase an antivirus at an additional discount from a partner company.

Western marketers, by the concept of "cross-promotion" understand the process when a customer is offered a product or service because he bought another product or service. In other words, during the cross-promotion process, the company creates additional conditions in order to direct buyers, either during or after the purchase process, to purchase a related product.

Airlines are one of the pioneers in cross-marketing collaboration. They offer customers to earn additional bonuses, or "miles", using various mechanics:

Use a co-branded card of a particular bank;
Rent a car or stay in a hotel with partners;
Buy flowers that are sold at the airport;
Purchase an insurance policy through a partner insurance company.

Joint Advertising

Often advertising on TV or radio is expensive and out of reach for companies. Joint advertising within co-marketing cooperation solves the problem of a limited budget. When analyzing the list of potential partners, it should be remembered that the advertising message should be of interest to the target groups of all companies participating in the promotion.

Collaborative advertising can be implemented either in the format of a combined ad that talks about several products at once, or by dividing advertising time or space into sub-ads, which each company fills with its message.
Someone will say that the appearance of two brands in one advertising field is risky, since in this case it is more difficult for the consumer to remember several brands at once. But such well-known corporations as Mars, Geico, Dairy Queen, Volvo, Kraft Food, Progressive Insuranse and many others are not afraid of this.

The idea of joint advertising of insurance company Geico and M&M's chocolate dragees came to mind of creatives from Mars. If your hero - a symbol of the brand - is a chocolate dragee, then what can you do to demonstrate how delicious it is? Refuse insurance! Mrs. Brown is so appetizing that she can be eaten at any moment, so she comes to one of the most famous US insurance companies - Geico, whose name resembles the word "gecko". No less colorful symbol of the insurance company - the gecko - is the second hero of advertising. The insurer refuses the request, which ends the commercial, but not the storyline of further relationships between the characters, which continued on the pages of social networks.

Examples like these show that with strong brands and an interesting scenario, companies get along well in a common area. As a result, the total effect exceeds the value of each component.

Joint competition

The development of sales through social networks is promising due to its wide coverage and the ability to reduce organizational costs. Users are accustomed to constant drawings, so by joint efforts, companies can act as sponsors of a contest or lottery. Cooperation allows you to recruit a larger number of participants who are more interested in competing for a more valuable prize prepared by two companies at once. By pooling resources and sharing costs, the value of the promotion decreases or the prize increases.

joint event

Participation in promotional events of other companies or attracting partners to fill the program of their corporate events is attractive from the point of view of expanding the base of contacts of potential customers.

Participation in a promotional event perfectly demonstrates the basic law of co-marketing - to catch fish where they are caught. At the same time, co-marketing cooperation should be distinguished from sponsorship.

Sponsorship at an event, even if it is a charity, implies financial support. In contrast, co-marketing collaborations do not involve money. As part of co-marketing, organizers allow other companies to advertise their products or services, hold tastings, and offer samples of products at a holiday or event. In return, the organizers receive a more spectacular and rich program, which contributes to the overall favorable impression of the guests from visiting the event.

Co-production

This option of cooperation is suitable for both large corporations and start-up entrepreneurs. Co-branding, or the creation of a product under a common brand, has proven itself in a variety of business areas in b2c and b2b formats, in the field of leisure and entertainment, fashion retail, etc.
Companies that are famous for marketing as their strength are not afraid to make new connections and launch partnership projects. For example, in May 2017, a unique platform was launched in the MEGA Khimki shopping center that combined the Tele2 communication salon and the Cofix coffee shop chain. Naturally, special benefits and bonuses are provided for clients of both companies.

The tendency to attract show business stars to cooperation is also gaining popularity. And if popular performers themselves are open to partnership, then such projects are simply doomed to popularity. So, after the launch of a network of restaurants and hostels, the head of Black Star announced the launch of a new mobile operator on the market. The technical platform was provided by the partner, Atlas. The common brand Stars will be developed on the platform of the mobile operator.

Co-branded cards

The first projects of mutually beneficial cooperation between companies and banks is the issuance of co-branded cards. Such cooperation implies additional benefits for a specific audience.

For example, for fans of online shopping on the world-famous Chinese platform AliExpress, Tinkoff online bank offers increased cashback. Along with the benefits, the client can also receive a higher cost of annual maintenance. But, as a rule, the benefits obtained from the constant use of the card more than pay for these costs.

In the case of Sberbank's co-branded cards, prepared jointly with Hasbro and Central Partnership for fans of the Transformers movie, holders will have to pay extra for the design. The cost of a card with the image of a Decepticon or an Autobot will cost 500 rubles more than the standard one. But the bright design of one of the most used accessories will give individuality and style to its owner.

Loyalty program

Such a tool as a loyalty program is used by many marketers of both large and small companies that are just gaining momentum. Almost any business is interested in developing long-term relationships with customers, attracting them to return for purchases or services again and again. American researchers have calculated that it is much easier to retain existing customers than to attract new ones. An increase in the loyalty indicator by only 5% entails an increase in revenues up to 95%.

The mechanics of such programs are known to many. As a rule, this is the accumulation of bonuses or points, which can later be exchanged for discounts or gifts. Many consumers are happy to join the race for gifts, and when they go shopping, be sure to check the store's club card.

The coalition loyalty program is considered the next step in the development of the brand's marketing policy after the successful implementation of the monobrand loyalty program. In this case, an expanded pool of partners allows you to expand the range of possible gifts and other "lures" that consumers "peck" at.

The classic loyalty project for Americans is focused on the mutually beneficial cooperation of a pool of companies that can satisfy all the basic needs of the client. As a rule, this is a bank, a gas station, a supermarket, a travel agency, a network of fitness clubs, a network of pharmacies, etc. In addition to tangible benefits, intangible benefits can be offered to customers. For example, access to exclusive information, invitations to private events or free expert advice.

One of the very first domestic loyalty programs is the Raspberry project. The purpose of the merger of several companies was to increase consumers. The partnership allows you to introduce customers to other brands participating in the program. Since many consumers have constantly changing preferences and values, such alliances help to overcome contradictions. Often one of the brands can act as a “donor” of some value for the consumer.

Due to general advertising, companies expand the circle of each other's consumers, and the authority of one brand makes the client pay attention to a partner who is in the same row with him. The card of the coalition program, as it were, encourages its holder to lead a certain lifestyle: use the services of one mobile operator, go to specific restaurants, use the services of a pharmacy of a certain network, fill up at gas stations, go to one cinema chain, etc.

To date, the most large-scale and grandiose Russian loyalty program is the Thank You project from a well-known domestic bank. More than 27 million people participate in the program, and hundreds of companies are partners of the bank.

How to calculate the return on co-marketing?

The success of a co-marketing partnership depends on many factors, among which the leading ones are the search for suitable partners, the control of promotional activities, the motivation of partners to participate and the analysis of results.

Finding suitable partners is greatly facilitated by the Internet. There are many virtual communities that bring together marketers and promotion specialists from different companies. The online platform of the Russian Co-Marketing Association is directly dedicated to cross-partnership, where any registered participant can place a proposal for a joint project or respond to proposals from other companies.

The control of the promotions is focused on maintaining parity between the participants in the joint marketing activity. To do this, the secret observer method is often used, which allows you to find out how responsibly the employees of the partner organization are in fulfilling the agreements.

Analyzing the results of cross-promotions can often be much more accurate and understandable than the returns from media advertising. Various forms of joint marketing allow you to reach a specific target audience. Many companies use special promo codes in order to calculate how many coupons returned from partners. But this is by no means the whole return, since there is a high probability that, if necessary, a potential client will remember the existing coupon from a particular firm, since the purchase is associated with obtaining additional benefits.

In summary, cross-promotion is a unique form of work that brings together professionals who are willing to help each other to get the most out of their advertising budget. The opportunities for co-marketing are huge, and the only thing that limits cross-promotion is the imagination of marketers. According to the well-known American consultant Jeff Slutsky, cross-marketing is the creation of a situation where all participants benefit.