Alliance Marketing

  • It occurs when 2 or more companies co-operate to jointly promote and sell a product, service or even a concept.
  • It can take place on any scale national or international.
  • It can be employed by any business when it finds partners interested in mutually beneficial co-operation.
  • It involves pooling of resources.
  • Alliances of non-competitive businesses. e.g. car-rental business.
  • Destination alliances, where hotels, restaurants, and tourist businesses pool resources to market their location to prospective travelers.
  • Technology alliances often are formed to promote a new device or concept.
  • Alliances to expand into new markets are particularly useful, since independent expansion requires a huge investment of resources and forming new channels.
  • Companies usually trade loyal customers, increasing business for both members of the alliance.
  • The marketing team identifies the business opportunity that could potentially be met through an alliance.
  • Considering an international alliance, additional research must be conducted on the other country’s economy.
  • Both businesses need a clear understanding about what each partner is expected to do, and how management decisions will be made in cooperative efforts.
  • Refer the link to know more.

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