Cooperative Marketing At GGI
The value of cooperative marketing relationships
Relationships created as a result of cooperative marketing are valuable as they minimize the cost of advertising as well as marketing. When two or more companies include cooperative marketing as part of their advertising strategies, they are able to cost share the charges accompanying the advert. Similarly, such companies are able to acquire more new customers as probability of customers from another company who are affected by one part of the advert will generate an added interest in the partnering company hence increasing the market share (Dickinson, and Ramaseshan, 2004). Globalization has led to the emergence of a group of individuals who prefer having all their needs met at the same instance such that they would prefer to purchase products a variety of products which are being marketed under one roof. This makes it more convenient for them as well as reducing costs such that companies who are carrying out cooperative marketing are able to reach and influence a wider consumer population. This also increases the sales of products from either company which is part of the relationship (Moen, Bakas, Bolstad and Pedersen, 2010).
Creative ways in which a company can engage in cooperative marketing
Companies which engage in cooperative marketing may opt to carry out joint promotions such that a company like GGI may promote one of their brands together with the brand of another company such as a food store. Individuals who purchases foodstuff from the food store could be included into a draw where winners can be awarded GGI merchandise. This form of promotion can involve a single brand or a wider range depending on the preferences of customers visiting the food store. Such a promotion will not only act as a way of promoting the brand but it will also market the products of the
two companies involved in the cooperative marketing (Moen, 2010).Cooperative marketing can include endorsements such that a company chooses a personality or another company to carry on the brand of a specific product. Such an endorsement involves signing contracts indicating the length of tie in which the endorsed company will pay the other company which will be marketing their name. In this case, GGI may endorse a school such that for a given duration of time, that school will be attributing al its activities to GGI. At the end of the contact, both parties will have gained in terms of brand popularity as well as building of a reputable image (Dickinson, 2004).
Qualities of a partner in joint marketing
Both parties should be marketing products which are complimentary though not similar especially when carrying out cooperative advertisements. This is because one of the aims of carrying out the advertisement is to increase brand awareness as well as increasing the chances of customers buying the same product again. Hence joint partnerships with companies selling related products increase this opportunity because most customers will be in a better position to remember the other product which is new them (Dickinson, 2004).The partners carrying out the cooperative marketing must agree and respect the duration of the partnerships due to constraints in terms of finances as well as other resources. However, companies wishing to carry out joint marketing for longer should seek for companies with a larger number of brands which will be marketed.
This involves formalizing all agreements so that each company may get a better understanding of their role (Moen, 2010).Similarly, cooperative marketing partners should never be rivals but rather dealing with related products. This is to avoid confusion on the customer’s side when they fail to distinguish the operations of either company. Consequently, rival companies have limited clientele which may yield unhealthy competition as well as create no impact on the market share as the customers will be shared among the competitors who are partners. Therefore, it may not be beneficial to include a rival company in the joint marketing project (Moen, 2010).A joint partner with a good reputation in the business circles will be another quality to look out for when carrying out the selection. Such a factor is essential as the probability of achieving better results after engaging in a joint partnership with a reputable is quite high as compared to a little known company (Moen, 2010).
Effective cooperative marketing ways for GGI
The most effective cooperative marketing way for GGI is use of joint promotions with companies which deal with manufacture and distribution of beauty products where marketing for the gifts can make a greater impact. After introducing house wares the company can include partnerships with food stores to market various brands in house ware (Dickinson, 2004).Similarly, GGI can endorse tour companies to sell its brand of home décor products such that tourists who obtain their services from the specific company are able to get discounts on products form GGI (Dickinson, 2004).
References
(Dickinson, S. and Ramaseshan, B. (2004), an investigation of the antecedents to cooperative marketing strategy implementation. Journal of Strategic Marketing. Vol. 12, iss. 2, pp. 71-95
Moen, O., Bakas, O., Bolstad, A. and Pedersen, V. (2010), International market expansion strategies for high-tech firms: partnership selection criteria for forming strategic alliances. International Journal of Business and Management. Vol, 5. iss. 1.
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