Alliance Marketing has become one of the best business strategies. In this article we tell you what this type of marketing consists of, its characteristics, examples and the training necessary to create it.
What is alliance marketing?
Many companies create these links to improve their sales levels and customer acquisition.
A simple example of what an alliance marketing strategy would be is when you go to a florist with the intention of purchasing a flower arrangement that you will take to a wedding. Once there, you manage to visualize an advertisement for a nearby bakery, displaying a large number of wedding cakes.
And, if you visit that bakery, you will be able to discover a great variety of flower arrangements that are sold by the florist in which you bought the flower arrangement.
None of these businesses have a competition with each other, They have only achieved the alternative of joining and helping to promote the products of both stores.
All this by referring to customers on both sides in order to attract more public and increase their sales.
Alliance marketing originates when two or more companies help each other, with the intention of collectively promoting and marketing a service, product and even a concept.
This strategy can be carried out at any level. Even internationally, as long as it provides benefits to everyone involved.
Who employs alliance marketing?
This alliance strategy can be applied in any type of company, as long as it manages to get associates who are interested in mutual beneficial support.
Essentially, it involves the contribution of common resources. These could be: experience, knowledge, marketing infrastructures, brand recognition or monetary capital.
Alliance marketing is done with the intention of obtaining much higher results than could be achieved independently.
Some examples include:
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Non-competitive business alliances
In this strategy we would add the previous example between the flower shop and the bakery. Where both companies come together to achieve the objectives desired by each party independently, achieving mutual benefit.
Also, we could include a car repair shop, a towing service and a car rental business that cooperate with each other. This with the intention of offering a complete service to the same client.
In this strategy we can set an example where tourism companies, restaurants and hotels join efforts and offer packages to promote their services to potential tourists, offering them the best in entertainment, food and comfort for their total comfort.
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technological alliances
These types of alliances are commonly made to promote a new device or concept.
In this case, companies that have a high potential for competition to provide a new technology must face a higher level of competitiveness, imposed by other companies that represent the existing technology and already established in the market.
Alliance marketing allows these companies to establish a greater presence in the market in order to displace the old technology. It also gives them the guarantee of being able to establish the standards for the manufacture of the new technology.
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Alliances to expand into new markets
These alliances are particularly useful, since for a company to expand independently, it requires an investment of resources, studies and development of new marketing channels.
This alliance marketing strategy is very useful for tapping into overseas markets. A company from one country can market its product through the cooperation of an established company in another country, and thus take advantage of a new market immediately.
This alliance also works effectively for domestic expansion.
To take an example, Starbucks created an alliance with Pepsi, to market its ready-to-drink beverages at service stations and grocery stores.
Starbucks entered the marketing network established by Pepsi without having to create its own network. In exchange, Pepsi received revenue from new products (packaged Frappuccinos) and with the particularity that they were not competition for its own drinks.
Why use alliance marketing?
- Increase the growth of the brand or company.
- It allows the introduction to new segments.
- New customers are acquired.
- Increase strengths and decrease weaknesses.
- The combination of resources and efforts reduce expenses.
- Turn your competition into allies.
- Reach new markets (especially internationally).
- Shared risks.
For what type of clients is this type of Marketing effective?
New customers are regularly captivated by companies that apply alliance marketing.
Companies usually trade with loyal customers, this allows the two members of the alliance to increase their business and transactions.
Customers loyal to partners add to the new customer base, since they will pay much more attention to the products or services referenced or suggested by that company.
Leveraging a partner’s reputation, distribution, offerings and brands, companies can market their products and services to customers who were previously completely out of their reach.
How is an alliance marketing campaign developed?
By coordinating the strengths of different companies, effective marketing can be achieved, thus satisfying market demand.
In order to maintain the new business relationship, there must be continued effort and significant pre-planning by allies.
The marketing team at the beginning identifies the business alternative that could be achieved by carrying out an alliance.
Then, they carry out a study of possible allies, always taking into account the possibility of a return on investment in said alliance.
What can these companies contribute? Have you had alliances with other companies? How have you been? Are they stable? Do they have a work style compatible with ours?
international alliances
When a company considers making an alliance at the international level, it must apply additional studies, specifically on the economy of the other country.
Is it possible for currency exchange rates to change? What is your scheduled inflation rate? How are interest rates in that country scheduled to change? What are the statutes of that country regarding intellectual property rights?
When finding a partner (or partners) for alliance building, finding a partner (or partners) for an alliance, each stakeholder must create methods and perspectives in advance.
Each of the parties should have a clear understanding of what each partner is expected to do, and what decision-making will look like in support efforts, whether or not this alliance applies to the formation of a new business entity (company). joint).
Something that can be very beneficial for partners is the exchange of commitments and expectations.
Study within partner companies
In addition to studying external marketing, it is also significant to carry out a “internal marketing“.
Workers from both partners should be involved in the alliance marketing program, having a clear idea of both what they are contributing and the value they are taking from this partnership.
When operating by planning long-term goals, it is when alliance strategies are most effective.
When a significant investment is made, it takes time to develop. Short-term payments typically fail to justify the risks and costs of that investment.
However, the alliance partners must wait for the other stakeholders to do their work.
If in the alliance one of the partners does not fully comply with his work and commitment, he must be excluded from the company, and get a more active and effective partner.
Crucial elements of alliance marketing
- Select the appropriate partners.
- Knowledge sharing.
- The objectives of the allied companies must be compatible.
- Create mutual marketing commitments in advance.
- Educate “internal customers”: Market the alliance to the rest of your company.
- Create a long-term program planning and focus the results at the same time period.
What Career Titles Work With Allied Marketing Strategies?
Alliance Marketing Managers
Alliance marketing managers may provide their services to a company consolidating into a business alliance or to a third party that has been retained to create and develop an alliance strategy.
What do they do?
- They conduct research for the selection of viable partners.
- They create goals for stakeholders in an alliance and metrics to monitor progress toward those goals.
- Handle all communications: communication between partners and their customers, such as communication between partners.
- Promote the alliance through communications, promotions and special events.
- Direct the work groups and programs organized by the allies.
- Calculate the level of effectiveness of the alliance, provide recommendations on new recruits and adjustments.
Education and Skills
The vast majority of alliance marketing managers are characterized by having at least a bachelor’s degree, mostly in marketing, business administration or advertising. As well as, foundational and successful experience in marketing, special promotions, advertising, distribution, and/or public relations within your industry.
Market Research Analysts
Market research analysts collect data on a fragment of the market, basically they are the ones in charge of identifying the factors necessary to reach new markets and customers.
What do they do?
- They use a variety of alternatives that help them collect data on customer needs, buying habits and preferences. Some methods applied are interviews, focus groups, questionnaires, etc.
- They make a compilation of market conditions, competition and future trends in the industry.
- Through statistical techniques and software they perform data analysis.
- Using graphs, tables, and other means, extract and communicate findings to your organization.
- Through all the data collected they can forecast future trends and opportunities.
- They periodically update and evaluate the techniques and methods of data collection.
Education and Skills
Market research analysts require at least a bachelor’s degree in market research, or experience in a related field, such as computer science or statistics.
Many research jobs also call for a master’s degree, primarily for leadership positions or for positions that engage in more technical exploration.
business analysts
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