Introduction
- Do you want to advertise your product at a low cost?
- Are you not getting the expected results by spending so much money on advertisement?
When you have a limited budget to market your product, then the only way that can help you to advertise your product is Cross Promotion Technique.
It allows you to advertise your product using an established and non-competing brand without investing too much.
What is Cross Promotion Technique?
When two or more non-competing brands, which are targeting the same Psychographic and Demographic audience, come together to promote each other without threatening each other’s consumer base is called Cross Promotion Technique.
Benefits of Cross Promotion Technique
- Cross-promotion gives more promotion and exposure to non-competing brands without investing too much.
- It is the most cost-effective technique to add new customers to both brands simultaneously.
No-Risk Campaign
If your marketing budget is extremely less, then you have the option of no risk campaign, a process in which you need to search the right cross-promotion partner.
All the below-mentioned brands utilize the goodwill and assets of each other to promote each other without increasing their marketing and branding cost.
To increase your understanding of the phenomenon let’s discuss these cross promotion examples:
1. Coca-Cola & Mc Donald’s:
This partnership is running since 1955 and giving an additional growth rate of 5% to 10% to both the brands as their consumer base is the same.
2. BMW & Louis Vuitton:
Both are luxurious travel-based brands and also have high-quality excellence. The company especially designed BMW i8 in which Louis Vuitton bags fit perfectly. Thus, both brands give luxury services together and increase their customer base.
3. ARIEL & L.G Washing Machine:
Both companies’ customers get exposure and have multiple touchpoints.
4. Google Android 4.0 & Nestle Kit-Kat:
Kit-Kat launched chocolate in the shape of Google Android. This partnership increased visibility, viewership, and recall value of Google Android.
5. UBER & Spotify:
Both brands promote each other and are getting J curve growth simultaneously.
6. NIKE & Apple:
Apple provides workout data to the end-users of NIKE sports shoe users. Thus, both popular brands club their services.
7. GoPro & Red Bull:
GoPro sponsors all the events of Red Bull and both brands focus on Adventure, Youthfulness, and High Energy. Thus, promote each other’s’ brands.
You have to join some popular brands to stretch your marketing reach and reduce your budget. Only then you’ll get a desirable result. |
5 Steps to Select Right Cross Promotional Partner
1. Pick the Right Partner
Before selecting the right promotional partner, you have to go through the market image and customer base of that brand to ensure whether it is going to promote your brand or not.
- You should choose your partner that matches your target audience. For example, an educational institute can never make a partnership with Alcohol Company.
- There should be a strong match between the target audience and similar business ethics.
2. Go Beyond Me
While searching for a perfect cross promotion idea and partner, you need to think about the benefits of not only you but also your promotional partner.
You need to show the cross-promotion benefits to your promotional partner.
3. Search Outside the Box
To promote your business without spending money, it’s necessary to “Think out of the box”, which means you have to think about every possible aspect that helps you in advertise your product.
For strong advertising, you can also associate with:
- Cab Driver, Web Developer
- E-mail Campaign, SMS Campaign
- Direct Mail Company, Signage Company
- Local News-Paper Magazine
- Local Radio-shows & TV shows
4. Put Everything with a Legal Contract
Before joining hands with anyone in your business, it’s mandatory to frame a strong legal contract including the following points in your top priority:
- Financial Responsibility
- Expectation & ROI-Measurement
5. Consistency in Similar Language
There must be a clear connection and logical sequence between two or more products while choosing a cross-promotional partner.
You need to analyze that which kind of product or brand suits your requirement that can help you grow your business without high expenditure.
Avoid cross-promotion with unrelated products or businesses that may give mixed and confusing signals in the market and may hurt your brand value.