Santa Malinovskaya
Cross-marketing is a new and interesting marketing technology, the essence of which is the intersection of related services or products in one PR campaign jointly carried out by two (or more) companies.
Business is always looking for new ways and technologies, advertising, including, becomes more non-standard, the market is looking for new means of attracting customers.
Cross-marketing is a technology that allows you to attract buyers in two or more directions at once, and, moreover, establish serious, long-term relationships with other companies that are not competitors in the same market niche. Cross-marketing is divided into cross-PR promotions and cross-selling. A good example of cross marketing there was a New Year's campaign held in one car dealership: when buying cars of a certain brand, all buyers were awarded a certificate for free receipt of a chic Danish beautiful Christmas tree. The action was carried out in conjunction with a company that trades in Danish fir trees. As a result, all three parties were satisfied: a car service providing its customers with a free bonus; buyers who have received a gorgeous gift for the new year; a company that sells spruces, which got the opportunity to advertise its services both through a car dealership and through the salon's website.
Types of cross-PR stocks
- Tactical - short-term actions, sometimes one-off, more aimed at the sale of certain services or goods.
- Strategic - long-term, complex cooperation with other companies in the field of promotion and sale of services or goods.
A cross-promotion can consist of completely paid services (goods), or one service is paid, the other is free, in the form of a bonus.
Cross-shares can include - two or more overlapping services (goods) of different companies, but especially you should not get carried away with the quantity, so as not to get lost among them. Best of all - no more than three overlapping services (goods).
It is important to observe the price level when cross-selling - the offered services or goods should not differ greatly in price, i.e. if elite products are offered, the related products must also belong to the elite price group. This principle does not apply to bonuses where other related products are provided free of charge to buyers of the main product.
Before carrying out cross-promotions, it is worthwhile to think carefully: what target group the campaign will be designed for, what are the needs of consumers, etc.
It is best to advertise the upcoming cross-promotion well in advance, while notifying all those consumers in which the company is interested. At the same time, advertising must equally reflect the interests of both companies participating in the action.
Corporate website
What are characteristics corporate site, distinguishing it from printed corporate publications?
First of all, this is the relationship within the triangle: client - designer (creator) - developer (programmer). The fact is that any corporate website is an integral element of corporate identity along with a trademark, logo, corporate font and color, documentation, image elements, etc. Therefore, problems always arise here:
1) between the wishes of the client and the elements of corporate identity that are required from the designer's point of view (opposition "Nice - comfortable");
2) between the elements of corporate identity that are required from the designer's point of view and the capabilities of software (opposition "A professional artist, but not a programmer - a professional programmer, but not an artist");
3) between the desires of the client and the capabilities of the software (opposition "Relationship to the programmer's website - relationship to the visitor's website").
At the same time, the client-visitor is the first who appreciates the beauty of the site, the convenience of obtaining information, and, finally, the financial side of the corporate web project. The more “live” the site, the more information it provides, the richer and more successful the company is. Therefore, in the corporate website it is necessary to focus on news, press releases, relevant links, novelties, constant change of price lists, assortment, etc. Basically, there is a golden rule for a corporate website: a corporate website is not a final, aesthetically frozen product, but a continuously updated process (or movement).
English RussianRules
Today virtually all markets are overflowing with goods. This oversupply makes the consumer very picky and more difficult to persuade them to buy. In response to increasing competition and the increasing complexity of customer engagement in communication, cross-marketing is emerging. How to attract customers quickly and cheaply? This question plagues 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 the needs of the consumer and make a profit.
However, marketing efforts are becoming more and more costly, and their effectiveness is decreasing due to the high information saturation of the consumer environment. Promotional specialists try to come up with new ways to achieve this, so the technology of cross, co-marketing or cross-marketing arises. Its essence lies in the accumulation of efforts to promote several companies within one communication program. Two or more manufacturers of goods or services in one advertising campaign affect the general 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 their products and received a great synergistic effect. This is how 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 became a common technology for advertising some goods and services. Today this technique is poorly studied from the point of view of theory, but practical experience allows us to say that it has its own undoubted advantages.
Cross Marketing Benefits
Thinking about who and how to 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, therefore responds to offers with great pleasure.
All this not only lowers costs, but also enhances the efficiency of communication. Another advantage of cross-marketing is the possibility of wide coverage of the target audience and entering new segments. Since each partner company enters into advertising activity with its target audiences, the addressees are expanded 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 idea of \u200b\u200ba 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
- Tactical. Those that are limited in time and solve short-term problems. These usually include one-time partnership promotions.
- Strategic. Long-term, versatile cooperation between partner companies. Allows you to solve various tasks, 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, resources of two or more countries are combined to advertise products. In its pure form, such a promotion cannot be called cross-marketing, since cooperation is carried out within the framework of one brand. When cooperating with different countries, it is necessary to take into account cultural and linguistic differences in order for the product to receive the correct semantics in the new region. Often, simply translating advertising texts is not enough for promotion in other countries. It is often required to develop new packaging and sometimes even change the name in order for the product's image to be 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 them to achieve 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 better known than the 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 require special conditions to be met in order for the promotion activity to be successful. The co-branding ad campaign program is influenced by the goals pursued. Already proceeding from them, a promotion concept should be developed.
Thus, strategy and tactics drive cross-marketing. Examples, conditions which 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 should have a good understanding of the partner's image and its target audience. The partner, in turn, should 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 match. The offered goods should also have points of contact, ideally, satisfy some common need. The consumer should be provided with some kind of benefit from participating in the promotion, for example, he receives a discount or a gift. Partner products must be in the same price segment. You shouldn't run 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 each other.
Basic forms of cross-marketing
Cross marketing can be presented in three main forms:
- Joint advertising campaign for partner products. In such events, partners act as equal customers for advertising. For example, the Coca-Cola brand ran a co-branding campaign with McDonald's under the slogan “Tastes better together”.
- Joint bonus or discount programs. In such campaigns, a client, using the services of one company or buying one product, receives discounts or bonus points for the product of another brand. For example, Aeroflot issued a joint card with Sberbank, on which points for transactions were accumulated.
- Joint BTL events. a 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. 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 crucial stage that requires separate consideration;
- preparation for the event: at this stage it is necessary to determine the resources, conduct motivational procedures for the personnel;
- development of a plan for a cross-marketing event and its coordination with partners: it is necessary to determine such parameters of the campaign as the volume of bases to exchange, the frequency of actions, campaign terms, penalties and bonuses, development of the campaign scenario, determination of those responsible for the implementation of the plan;
- implementation of a cross-marketing campaign;
- summing up the results 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 by target audiences;
- goods must be in the same price segment.
- Among advertisers, advertising with the dreaded name of cross-promotion is becoming more and more common: when one campaign is paid for, and two brands are advertised. The new trend does not meet with enthusiasm among advertising agencies, but allows advertisers to significantly save their budgets.
One head it's good, but two better
The market dictates to companies the need to increase marketing budgets in order to maintain the necessary level of influence on the consumer. Unfortunately, only large "monsters" of the grocery and industrial markets can afford it. But what about companies that do not have a large advertising budget?
Look for ways to save money. One of the options is dividing advertising costs “into two”, or even “into three”. In this situation, joint promotion, or cross-promotion, is one of the most obvious and effective ways to achieve the desired effect with limited marketing budgets. It does this by combining the attributes of two or more brands to achieve more effective promotional campaigns.
It is about a shared marketing effort with the right partner. The following practice is becoming more widespread: within the framework of one promotional campaign, two brands are actually being promoted. We wash in a well-known brand washing machine and use a powder of a very advanced brand as well - it is recommended by the manufacturer of the same washing machine.
It is not only the very idea of \u200b\u200bcombining the financial capabilities of several companies that is tempting; moreover, it also happens that only one party pays for joint shares. Such cooperation, with the correct setting of the problem and the choice of tools, will lead to mutual support of brands in the market. In a joint struggle for consumers, you can prove your technical excellence, high social status, adherence to fashion and ideological attractiveness.
The original project developed by Nokia and Lexus is a good illustration of maintaining the image of the two prestigious brands. Its essence is that the intelligent Lexus Integrated Phone System (LIPS) on Lexus cars works only with the Nokia 6310i mobile phone model. Unlike traditional hands-free solutions, the owner of a luxury car gets comfortable and safe control of the car's audio system and powerful navigation aids. The connection is completely wireless, the driver only needs to place his Nokia 6310i phone in a special holder hidden on the center console and start the car. The system will then be activated. In particular, numbers from the phone memory are displayed on the color display of the dashboard, which is much more convenient than looking at them on a small phone screen. It is not only convenient, but also really safe, because does not interfere with complex maneuvers on a busy road.
Co-op rules
Experts identify two possible options for participation in this kind of advertising or promotional tandems:
1. Division into brand “steam locomotive” and brand “cars”
occurs according to the principle of functions that trademarks perform during cross-promotion actions:
- by source of funding;
- according to the priority of the goals of a particular brand.
The “steam locomotive” brand, as a rule, acts as a source of financing, and accordingly the priority of the set marketing tasks within the KP is on its side. In other words, the set goal “increasing consumer loyalty” refers specifically to this brand (including due to the material / intangible attributes of the “car” brand).
If the leading brand has a high level of popularity, then for the "small" participant in this situation it will be useful to increase their awareness at the expense of the leader with a minimum of financial costs. In fact, all that is required is the product itself. This technique is most often used in mechanics aimed at promoting FMCG, for example, the standard “gift for purchase”. But what are the benefits of the “carriage” brand?
At first glance, if one of the partner brands is clearly larger than the other, then the younger participant will benefit most. After all, the very fact of cooperation with a more famous company attracts the attention of potential consumers. Thus, it acts as a kind of locomotive for the "fry" and the still weak beginner. True, truly unequal partnerships are simply impossible - by and large, no major brand will agree to “pull up” and pull such a “dependent” into people, relying on the strong shoulders of an already promoted brand. Even if this "dependent", claiming a share of fame, is willing to pay for it.
But, on the other hand, not always a smaller company or a non-promoted brand as one of the members of the promo-alliance will remain on the sidelines. In co-marketing, both parties play equally important, albeit slightly different roles. After all, everyone pursues their own goals. Finally, a popular or simply striking brand, for example, not of the largest local firm, may turn out to be just a desirable partner for large world brands wishing to declare themselves in a certain niche and localize in a particular get-together. And in this case it is still unknown who is "pulling" whom!
2. The situation when brands are equal partners... Most often, the method of cross-promotion is used in the mechanics of promoting expensive and high-tech products. For example, when buying a jet ski and scuba diving equipment at the same time, the buyer gets a discount on both products. This is the principle of "wholesale discount" with the only difference that wholesale in this case is not a specific number of units of a product of one brand, but the total number of sold units of 2 brands. Here, equal conditions for financial investments in the project are possible, respectively, material and non-material benefits are equally distributed.
In addition to these rules, there are other important conditions that affect the choice of a partner for a joint promotion. First, brands must be non-competing with each other. And secondly, the promoted products must complement each other. For example, for food products, flavor compatibility is important. It is unlikely that some of the consumers will have a desire to taste meat and dairy products at the same time or receive a coupon for visiting a fitness center as a gift when buying conditionally 4 packs of macaroni, which, as it were, by chance, but offensive to the buyer, reminds him of flaws in the figure. But chips with beer are quite compatible.
When a taboo is imposed
Cross-promotion also has its own limitations, which depend mainly on the goals and the current situation with the brand. There are several situations where this method is not recommended.
Situation 1... Your brand is doing well, the brand has a clear detachment from competitors, there is high loyalty / brand awareness by the consumer, as well as stable growth dynamics, and, finally, your brand has a leading position in the market. In such a situation, the organization of tandems can negatively affect the perception of the brand by the consumer. “Negative attributes” (and they usually always exist) of a partner can “tarnish” the brand's image. Experts do not recommend to abuse this type of communication. The fact is that the success of the campaign does not always depend on the brand itself; the environment of the partner brand is also taken into account. Consequently, the share of risk increases.
Situation 2... Pharmaceuticals. In this situation, it is generally dangerous to use any consumer-promotion methods (and cross-promotion is one of those), because a person makes a purchasing decision under the influence of BTL instruments less often. The main opinion-makers (opinion leaders) are doctors, pharmacists, sales consultants. Therefore, for pharmaceuticals, if we talk about BTL methods, trade-promotion is more effective.
Situation 3.When the criteria for evaluating a partner are not met in full, it is better not to carry out joint actions in order to avoid risk. What these criteria are will be discussed in the next section.
The perfect combination
The algorithm for preparing and conducting cross-promotion campaigns depends on many factors, the main of which are goals. Accordingly, the first task is to determine what the company wants to achieve using the tools of joint promotions. Indeed, sometimes it happens that in order to achieve some goals, it is not at all necessary to take a partner. For example, if the task is to bring to the market a new brand that opens a still unknown product category (as Nescafe once opened the category of "instant coffee"), then communication with the consumer should be based solely on the benefits of the product itself. Otherwise, the USP of the product will be "dull"; the consumer simply will not notice the “uniqueness” of the product, since the environment of the partner brand (no matter what category) will draw off a certain share of the consumer's attention.
But the most important task before starting the CP is to choose the right partner that meets certain criteria.
1. Partner target audience... The very concept of KP implies the impact of 2 or more brands on one consumer. Those. during communication, the consumer may encounter at least two brand-messages. But there is only one consumer. Accordingly, his purchasing behavior is a consequence of a subjective idea of \u200b\u200bmaterial and (or) intangible values. For example, if a person drives a BMW of the latest model, then he prefers to drink expensive cognac. It would be foolish to offer him a set of glasses made of cheap glass as a gift for buying an elite cognac. Consequently, partner brands must match each other at least in terms of the socio-demographic characteristics of their target audience.
2. Positioning... This is where the concept of the brand equity of a brand comes into play, which is expressed in intangible resources and is determined by the level of loyalty to the brand. Experts say that if the branded capital of the promoted brand is higher than that of the partner brand, then it is unlikely that it will be able to increase as a result of the company's participation in the cross-promotion. And in some cases, even on the contrary, it decreases, for example, if suddenly, while promoting two equivalent brands, there was a rumor that one of them had a frankly low quality. Such "PR" can negatively affect the level of loyalty to a partner, and there is always a risk.
3. Purchase situation... When developing joint promotions at points of sale, you need to know for sure: WHAT the buyer came to the store for. If he clearly understands what product and what brand he wants to buy, then he is unlikely to pay attention to advertising communication. As a rule, this situation is typical for goods of “non-impulsive” demand, or pre-selection (such as cars, household appliances, etc.). Another thing is with the "impulsive" purchases of the FMCG market, when the choice of a product is most often determined at points of sale in a largely spontaneous way. Accordingly, communication through the use of the "cross-promotion" method will have the likelihood of greater success.
If a customer came to the store for dumplings, then it would be logical to offer him his favorite sauce as a gift for the package. Examples of successful combinations of partner brands include the following: meat products + spices; pasta + ketchup; low alcohol products + snacks; beer + chips (croutons); cars + auto accessories + machine oil; travel vouchers + accessories for recreation.
So, when choosing a partner, do not forget about the rule - “measure 7 times - cut once”.
This trend of organizing advertising and promotional tandems does not delight advertising agencies and the media. And this is understandable. Therefore, they are trying by hook or by crook to somehow limit such initiatives of thrifty businessmen. Rumor has it that TV people are already quite seriously discussing the possibility of introducing additional fees for placing "double" advertising ...
One of the most striking examples of cross-promotion is the promotion of several brands in the film industry.
Companies that put a product in a feature film build a full-fledged advertising campaign based on its plot, using the main characters and video images. All channels of promotion are activated - television, radio, outdoor advertising, displays, stands, posters at points of sale, PR.
Cinematography shares with manufacturers of goods a ready-made history, creativity, promoted brand carriers. Who can compare in popularity with ... (fill in the blank with the name of the star that comes to mind for you!). However, cinema is not offended - after all, by advertising their products, the producers are promoting the film itself. The support of advertising companies is helping the film industry reduce marketing costs, which average US $ 20 million to $ 50 million per film in America.
In the penultimate Bond film Tomorrow Never Dies, several world-famous manufacturers have placed their products at once: BMW, Ericsson, Martini, Smirnoff, Brioni, Omega, Visa, Heineken, Avis rental cars, L'Oreal. Catterpillar and Fujitsu joined this glorious cohort in the latest episode “The World Is Not Enough”. The cost of the cross-promotions of the film "Tomorrow Never Dies" carried out by the promotional partners was, according to various estimates, from 100 to 120 million dollars.
One of the areas of cross-promotion is advertising campaigns and PR-events directly in cinemas where the film is shown. All Bond promo partners actively used this technology, and what is most gratifying - it reached Russia already in 1997 during the release of Tomorrow Never Dies.
Perhaps the largest campaign was carried out by BMW at the Kodak-Kinomir cinema theater in Moscow. The raffle among spectators of the Z3 car became the core. In addition to being present on all the media offered by the cinema (rental of commercials before the show, placement on printing: flyers, brochures, tickets, invitations, placing banners in the lobby and banners on the street), BMW also used other forms of advertising. In particular, the radio station "Maximum" was involved in the cross-campaign. Every day there were free tickets for the "Tomorrow Never Dies" session, and every day a password was announced on the air. The program was designed for 18 days - according to the number of James Bond films. Every day a winner was determined. As a result, a car was drawn among them. In addition, before the premiere in Moscow, BMW organized a closed VIP party in the cinema, inviting leading media outlets. Ericsson held a mobile phone raffle among cinema visitors.
Both parties pay for generic advertising, and this is its appeal for medium-sized companies. However, such a tandem is often paid for by one side, because each of the participants in the cross-advertising program has its own interest. Let's say one seeks to gain access to a partner's audience, and the other - to achieve fame, recognition of his brand.
Co-marketing technologies, or joint marketing, came to Russia and became widespread thanks to the introduction of the experience of promotion specialists from the United States. This technology helps to communicate with potential buyers as efficiently as possible, using a variety of formats and channels. As Western marketers say, cross-marketing allows you to freely spread information about a company and do it as efficiently as possible.
First, let's figure out what co-marketing is and for this we give a definition from Wikipedia:
Co-marketing (from the 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 is 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 products 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 it was applied in his practice by Benjamin Franklin. In the early editions of Poor Richard's Almanac, readers could take advantage of special coupons from various merchants. Ben obviously felt the discount coupons added value to his publication and made it easier to sell. In turn, shopkeepers received a steady stream of buyers.
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 in advertising or promotion costs. We can say that joint marketing 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 cost and the resulting traffic of new customers, co-marketing is often called free advertising. This concept is attractive to most business owners.
Besides the low cost, co-marketing has many other benefits as well.
- The ability 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 average check size. Joint activities are structured in such a way as to stimulate larger purchases or purchase of more expensive products.
- The ability to use new communication channels and advertising opportunities for 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 against similar ones.
- The ability to give a brand a new touch. For a small company, partnering with a well-known firm can help transfer the positive associations from a stronger and more successful brand to your own. For a well-known corporation, co-marketing opens up the opportunity to present the company from a new side, to give it a different "shade" or "sound".
- Additional PR.
Many successful examples of co-marketing allow us to conclude that cooperation between companies is always easy. But this is not the case. Before starting joint projects, you need to carefully study all the subtleties. Cross-promotion is a rather complex marketing tool with a very low tolerance for abuse. On the other hand, if used correctly, it can significantly increase a 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 expects? 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 present the value of your program or partnership proposal to a partner.
- It is believed that it is not worth merging with competitors, since the likelihood of using the partner's corporate information is high. At the same time, competing companies, when united, gain a stronger place in the market and can oppose more successful companies.
Types of cross marketing
Co-marketing or co-marketing can take many different forms: joint events, production organization, mutual distribution of newsletters, referral mechanisms, discounted offers, etc.
Cross promo
In its simplest sense, cross-promotion is a marketing program aimed at offering customers the opportunity to purchase a related product. For example, a customer purchasing a shirt might be handed a coupon for a pair of pants at a nearby store, and a customer who purchased a computer program might receive an email offering to purchase an antivirus at an additional discount from a partner company.
Western marketers, under 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 orient buyers, either during or after the purchase process, to purchase a related product.
Airlines are some of the pioneers in cross-marketing collaboration. They offer customers to earn extra bonuses, or miles, using various mechanics:
- Use a co-branded card of a specific bank;
- Rent a car or stay at a hotel with partners;
- Buy flowers that are sold at the airport;
- Purchase an insurance policy through a partner insurance company.
Joint advertising
Advertising on television or radio is often costly and out of reach of companies. Co-advertising in co-marketing collaboration solves the problem of limited budget. When analyzing the list of potential partners, it should be remembered that the advertising message must be interesting for the target groups of all companies participating in the promo.
Collaborative advertising can be implemented either in the format of a combined ad that tells about several products at once, or by dividing advertising time or space into sub-ads, which each company fills with its own 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 a consumer to remember several brands at once. But well-known corporations such as Mars, Geico, Dairy Queen, Volvo, Kraft Food, Progressive Insuranse and many others are not afraid of this.
The idea of \u200b\u200ba joint advertisement for the insurance company Geico and chocolate pills M & M's came to minds of the creatives from Mars. If your hero - the symbol of the brand - is a chocolate pill, then what can you do to demonstrate how delicious it is? Refuse insurance! Mrs. Brown is so delicious that she can be eaten at any moment, so she comes to one of the most famous insurance companies in the United States - 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 advertising video, but not the storyline of the further relationship between the heroes, 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 with a wide reach and the ability to reduce organizational costs. Users are accustomed to constant draws, so by joint efforts, companies can act as sponsors of a contest or lottery. Cooperation allows us 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 cost of the promotion is reduced or the prize is amplified.
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 fish where it is caught. At the same time, one should distinguish co-marketing cooperation from sponsorship.
Sponsoring an event, even if it is charitable, implies financial support. In contrast, co-marketing collaboration is not monetary. As part of co-marketing, organizers allow other companies to advertise their products or services, conduct tastings and offer samples of products at a holiday or event. In return, the organizers receive a more entertaining and eventful program, which contributes to the overall favorable experience of guests from attending the event.
Co-production
This type of cooperation is suitable for both large corporations and aspiring entrepreneurs. Co-branding, or creation of a product under a common brand, has established itself in a variety of business areas of the b2c and b2b format, in the field of recreation and entertainment, fashion retail, etc.
Companies renowned for their strengths in marketing are not afraid to forge new connections and launch partnerships. For example, in May 2017, a unique platform was launched in the MEGA Khimki shopping center, combining the Tele2 communication salon and the Cofix coffee chain. Naturally, there are special benefits and bonuses for the clients of both companies.
The tendency to attract show business stars to cooperation is 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 chain of restaurants and hostels, the head of Black Star announced the launch of a new mobile operator. The technical platform was provided by a partner, Atlas. The common Stars brand will be developed on the mobile operator's platform.
Co-branded cards
The first projects of mutually beneficial cooperation between companies and banks is the issue 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 receive a higher annual service cost. But, as a rule, the advantages obtained with the constant use of the card more than pay off these costs.
In the case of Sberbank 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 the card with the image of the Decepticon or Autobot will cost 500 rubles more than the standard one. But the striking design of one of the most frequently used accessories will add personality and style to its owner.
Loyalty program
Such a tool as a loyalty program is used by many marketers, both large and small, 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 retaining existing customers is much easier than attracting new ones. An increase in the loyalty rate of only 5% leads to an increase in revenue of 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, they must check for the store's club card.
The coalition loyalty program is considered the next step in the development of a brand's marketing policy after the successful implementation of a mono-brand loyalty program. In this case, an expanded pool of partners allows you to expand the range of possible gifts and other "lure" that consumers "bite" on.
The classic loyalty project for Americans focuses on the mutually beneficial collaboration of a pool of companies that can meet 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, customers can be offered intangible benefits. For example, access to exclusive information, invitations to private events or free expert consultations.
One of the very first domestic loyalty programs is the Malina project. The purpose of the merger of several companies was to increase consumers. The partnership allows you to connect customers to other brands participating in the program. As preferences and values \u200b\u200bare constantly changing for many consumers, such alliances help to overcome contradictions. Often, one of the brands can act as a "donor" of some value for the consumer.
Through general advertising, companies expand each other's circle of consumers, and the authority of one brand forces the client to pay attention to a partner standing in the same row with him. The coalition program card seems to stimulate 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, refuel at gas stations, go to the same network of cinemas, etc.
Today, the most ambitious and ambitious 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 finding suitable partners, monitoring promotional activities, motivating partners to participate and analyzing the results.
Finding suitable partners makes the internet much easier. There are many virtual communities that bring together marketers and promoters from different companies. The online platform of the Russian Co-Marketing Association is directly dedicated to cross-partnership, where any registered participant can post a proposal for a joint project or respond to proposals from other companies.
Control over the conduct of promotions is focused on maintaining parity relations between participants in joint marketing activities. For this, the secret observer method is often used, which allows you to find out how responsibly the employees of the partner organization are in the implementation of agreements.
Analyzing cross-stock results can often be much more accurate and understandable than the impact of media advertising. Various forms of co-marketing allow you to reach a specific target audience. Many companies use special promo codes in order to calculate how many coupons have 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 about an existing coupon from a particular company, since the purchase is associated with obtaining additional benefits.
Summing up the resume, it's worth noting that cross-promotion is a unique form of work that brings together professionals who are ready to help each other to get the most out of your advertising budget. The possibilities for co-marketing are huge, and the only thing that limits cross-promotion is the imagination of marketers. In the words of the famous American consultant Jeff Slutsky, cross-marketing is the creation of such a situation when all participants win.
Cross-marketing is the newest method of product promotion. Held jointly by several companies to increase sales of interested firms.
The advertised products or groups of products are complementary (accessories, accessories) or related (the product is required to use another product). 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 connected to a cellular operator, it is offered to buy a phone at a reduced price. Another example is advertising of dishwasher detergent tablets in hardware stores or promotion of milk sales in the region by various households.
Cross-marketing activities
- Promotions.
- Drawings with prizes.
- Fairs, exhibitions with special offers.
- Promotions.
- Holiday lotteries.
- Advertising with bonuses.
- Loyalty programs.
- Cross-partners with favorable conditions.
- Discount programs.
- Direct marketing.
The history of cross-marketing
Cross-marketing or cross-marketing arose in the United States in the early 90s (20th century), when the market was oversaturated with a variety of products, and the consumer became more picky and picky. However, the concept of co-marketing was developed during the Great Depression (1930s). Unconfirmed sources claim the use of cross-technology by Benjamin Franklin, a famous American politician, innovator and inventor.
The heyday of cross-selling was the end of the 20th century. Modern science is positioning cross-marketing as an inevitable trend.
Cross-marketing application terms
The most popular cross-marketing is becoming:
- in case of insufficient financial resources (partner assistance);
- if there is 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 accompanying goods;
- when products of different groups have a common need;
- if the buyer sees a benefit in purchasing these goods;
- when dissimilar products are in the same price and quality segment.
Cross Marketing Benefits
There are clear benefits to cross marketing.
- Savings in marketing activities.
- Joint partnerships with larger manufacturers.
- Benefit from cross-selling.
- The ability to significantly increase sales.
- Target audience coverage (interested) and entry into new markets.
- Creation of a favorable image and brand promotion.
- Bribery of the consumer with trust and the formation of associative links.
- A quick psychological trick offering 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 a benefit both for the branded company and for the less recognizable one).
- Branding.
Cross-marketing technologies or techniques
- Provision of discounts on cards.
- Publishing cross-links in electronic media and social networks.
- Provision of bonus goods (gift, discount certificate, individual promotion).
- The receipt of the goods is offered by exchange or by gift.
- Application of trial samples of another company upon purchase.
- Sponsorship of contests, festive events, sweepstakes.
- Providing a unique experience for the luxury consumer.
- Display of related products on the showcase.
- Distribution of leaflets, booklets.
- Joint advertising on TV.
- Offer of assortment in online stores in the column "with this often buy".
Cross marketing tools
- Online cross-marketing “cost per action” or “pay per action” (CPA). Companies pay for the number of attracted consumers who followed the link of the Internet site to the advertised site and bought the product. This includes banner ads, pop-ups, push notifications, and native ads.
- A joint advertising campaign (advertising) is carried out through various channels (TV, radio, media, Internet, fairs).
- The joint competition involves attracting a wide audience. By investing in the implementation of an idea, manufacturers acquire potential customers.
- Joint activities are carried out 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-branding cards offer the client to take advantage of the bonus (points, discounts) valid with the company's partners.
- A loyalty program is thought out for a certain category of consumers in order to force them to purchase. At the same time, an individual approach and care for the client is emphasized (discount on partner's goods, etc.).
Steps in making a cross-marketing plan
To plan your cross-marketing activities, use an action plan that includes:
- Search for partners that produce related goods or services who agree to such cooperation.
- Personnel 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 deal.
- Final check of information about partners, conditions of a cross-marketing campaign, ways of presenting information.
How and where to find a partner for your cross-marketing program
- Initially, study the list of partners (by city, region) with a similar target audience.
- Send the terms of cooperation or commercial proposal to the company representative.
- The search for companies is carried out 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
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 benefits 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);
- the effectiveness of the program;
- partner's benefit;
- coordination mechanism;
- data transmission channels.
The commercial proposal is drawn up on the basis of the existing project plan (briefly, informative). The resume is sent by e-mail, fax or sent in person. Depending on the scale of the action, offers are sent out in bulk or as soon as they receive a response from firms.
If the partner is interested in cooperation, they additionally send the release of the project and agree to hold negotiations.
How to write a cross-marketing contract
The cross-marketing agreement is drawn up according to standard form taking into account the specifics of the agreement. It indicates:
- names of partners;
- their certificate of registration as legal entities or SP;
- the name of the product groups participating in the promotion;
- goals of cross-marketing activities (general, individual, other);
- 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;
- the nuances of doing common affairs (obligatory meetings, negotiations);
- terms and responsibilities by agreement.
Examples of products / services with a similar target audience
Cross marketing in tourism
Tourists are the most solvent audience. Cross-country travel companies offer various promotions and advertisements.
- They offer cheap hotels.
- Advertise beach accessories, glasses, swimwear, suitcases, etc.
- They provide points when purchasing air tickets (for which a free ticket is subsequently purchased).
- They promote a healthy lifestyle, the ideals of harmony and beauty.
- Inform customers about the best deals on vouchers, hotel reservations, and convenient flights.
Tourists are often faced with an offer to buy an Upsell product, which is a kind of improvement of the perfect purchase. Such goods include excursions, guides, photographers, treatments 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 enterprises work closely with suppliers of products, sauces, spices, etc. Specialties are famous for serving, 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.
The restaurants also hold cross-character joint events. Basically, these are discount cards that are valid in 2 or more cafes, bars, bistros.
Catering companies cooperate with organizers of festive events, sports competitions, artists, DJs, vocal performers. Sometimes cross-PR is the campaign of the “face of the company”, a well-known and respected figure.
On Internet sites, there are often bonus codes, discount coupons and promotions of restaurants cooperating with inappropriate consumers: users of online games, the Internet and social networks, buyers of clothes, 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, aquariums, children's exhibitions.
Restaurant marketing is widely used when organizing professional holidays or celebrations (weddings companies, gift and souvenir shops, leisure companies).
Joint cross-marketing with fitness clubs
The audience of fitness clubs is diverse.
- Visitors to healthy food restaurants.
- 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 exercising in sports clubs or attending sports centers.
The audience is also alerted within the office environment through information leaflets. A small part is attracted through various stores through promotions.
How to run a cross-marketing promotion
- Pick 1 partner so as not to distract the consumer's attention.
- Choose the format of the cross-marketing event (advertising in the store, on the Internet, and in crowded places, mailing).
- Develop a project (advertising materials, conditions for buyers).
- Involve project developers, typography, internet designers, programmers, IT managers.
- Deliver trial samples, flyers, cards, coupons, promotions, or merchandise to the point of sale.
How to control customer purchases using stocks
First, determine the volume of the promotional product or the timing of the promotion.
Control over purchases is carried out using periodic reports and electronic means of commerce (software, cash register, 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 the point of sale, the buying process is accompanied by trained consultants and managers. They monitor the correct layout of the product, in many cases 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.
Top management for running the cross-marketing event rests with the chief marketer and initiators.
How to stimulate sales of shares
Use additional marketing tools to increase sales per promotion.
- Issuance of invitation leaflets.
- Placement of advertising signs.
- Offer more favorable terms of purchase (gradation of bonuses depending on the purchase price, number of purchases, etc.).
- Advising on promotions when meeting at the point of sale (meeting the client, informing).
- Control over the availability of advertising materials, goods.
- Adequate behavior of employees in relation to an ordinary 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 products of different price points (expensive kitchen furniture and a discount on a set of simple pots).
- They do not take into account the consumer's vision for the share (inappropriateness, going beyond reason, unaesthetic, illiteracy and everything that “hurts the eye”).
- Do not use special identification means (clothing, branded accessories).
- Sale-promotion is planned and carried out by people who are far from selling.
- Do not indicate the timing of the action.
How to hold an event so that there are no controversial points
You should conclude an agreement with a partner, register 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 information about the conditions of a competition, a promotion).
How the costs of cross-marketing are calculated
The calculation of the cost per share directly depends on the expected earnings. If the company's goal is simply to attract consumers, they rely on reserves. Each cost item is planned when drawing up a project:
- costs of prizes, gifts, discounts;
- costs of remuneration of employees;
- costs for advertising materials or electronic Promo;
- transportation costs;
- costs of consumables, samples, exhibition samples;
- registration costs.
Cross-channel marketing results
- Increase in retail sales (15% on average).
- Raising the image of manufacturers (sales growth in the future).
- Brand awareness through the use of various advertising channels.
- Possibility to identify promising advertising directions.
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 - income from the share.
- P is the expense for the campaign.
- If the formula total is less than or equal to 1, the promotion is ineffective.
- Cha - the number of checks for the promotion.
- H is the total number of checks.
- The higher the percentage of checks, the better the promotion was organized.
3. Analysis of the cost of attracting (returning) a guest Z / Cha
- The smaller the amount of rubles spent on one purchase, the cheaper the client is.
4. Profit DR (as a rule, companies do not have unprofitable shares).
5. The effectiveness of cross-marketing is assessed by comparing profits in the promotional and non-promotional periods.
Worldwide cross-marketing experience
Large companies and network structures use cross-marketing. It is common in banking, insurance, tourism, as well as in the sale of goods and services of the automotive industry, furniture and textile industries, catering establishments, enterprises for the manufacture of equipment and household appliances. Cross-selling is rare in handicrafts, private manufacturers and B2B sales.
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