Cross-marketing is a promotional method that implies collaborating with another company or several businesses to increase the target audience of all the parties.
In this article, we’ll shed light on the benefits of cross-marketing, explain how to choose partners for successful collaboration, and share some examples of world-known brands that work together.
Benefits of Cross-Marketing
Cross-marketing is a relatively new promotional technique. It allows brands to join the forces to reach different goals. This is possible only when their target audiences are similar in terms of age, social status, income, and needs. So, if companies develop a thought-out cross-marketing plan, they will manage to reap the following benefits:
- Increased brand awareness and recognition. This can be a goal for both big corporations desperately looking for brand-new approaches and enthusiastic startups.
- Sales growth. Brands that have clear buyer personas and enough data about their clients seek other companies with similar customers. Knowing people's needs and wants is the key to selling more.
- Improved credibility and loyalty. If your brand is the leader in the industry, the source of expertise, and the authority for the clients, they will trust your recommendations. In this case, people will believe that you won't put your reputation at risk for advertising purposes.
- Advertising costs reduction. If you collaborate with other brands for common goals, it means that you share both the responsibility and the advertising costs. Hence, you can give a try to some advanced and more expensive promotional techniques.
- Expanding the range of goods. Very often brands cooperate to release a joint product. This is common for sportswear brands and apparel. As a result, companies manage to create buzz around their businesses and increase their income.
- Building long-lasting relationships. Often brands that initially plan to conduct an advertising campaign together remain partners for a long time. Such cooperation brings a lot of new customers, common projects, and support.
Now that you know the benefits you can get implementing cross-marketing, it's time to learn how to find partners.
How to find partners for cross-marketing?
Choosing the right partner is the key to successful cooperation. If you only aim to generate more money, your clients will definitely feel that, and your reputation may suffer. So, do your best to find a company that shares your values, mission, and philosophy, because if you own a cruelty-free brand and collaborate with a company that tests its products on animals, you can completely destroy your reputation. To avoid such fatal mistakes, follow the tips below.
- Set your goal. It’s vital to be concrete about your main purpose. Avoid setting 3 or even more goals, otherwise, you won’t be able to focus all your efforts towards reaching the main aim. For example, if you want to increase your target audience or the number of followers, ask your partner to recommend your company via their email campaigns or publications on socials. Ensure people realize the value of this recommendation and can easily follow you or subscribe to your newsletter. If you aim to sell more items, consider creating profitable bundles with the products of your partner. Offer a reduced price to provide customers an additional incentive.
- Conduct a thorough analysis of your target audience. Are your customers male or female? Youth or adults? What is their income level? Are they vegetarians, vegans, animal rights activists? The more information you have, the bigger your chances to understand the real value of your product. Consider dividing it into smaller segments for better targeting. This way, you’ll succeed to satisfy the needs of different audience segments.
- Look for potential partners. Remember, that you should not compete, your target audiences need to be similar but not identical, your products should complement each other. Ask your loyal clients about their favorite brands and companies they would like you to collaborate with. Customers can be interested in this cooperation more than you do if they realize their profits. Make sure that you have a valuable offer for these companies to work with you. Prefer those brands that are the most interested in cross-marketing.
- Conclude an advertising contract. To protect both parties and ensure that all conditions are met, sign an agreement. It includes all the responsibilities of both companies, expectations, and budget.
Now let’s check out the brands that work together successfully.
Examples of Cross-Marketing Campaigns
The most successful corporations include brands from the same segment otherwise their clients can be confused. Look below.
Louis Vuitton and BMW
The car manufacturer launched BMW i8 in 2014 and collaborated with Louis Vuitton to promote it. The latter company produced the four-piece set of suitcases and bags designed especially for this new car. As a result, both brands increased their recognition and audiences.
Burger King and McDonald’s
These two competing brands collaborated in the name of good. Burger king, known for its provocative marketing campaigns, encouraged its clients to buy Big Mac from McDonald’s instead of their Whopper to raise money for charity.
Now you know why brands use cross-marketing, have some inspiring examples, and useful tips at hand. Make the right choice!
Last Updated: 30.08.2021