How to Sponsor Cross-Promotion Rights
Cross-promotions with one or more partners have become a common tactic in business, for both large corporations and small enterprises. They are used to enhance both retail and business-to-business sales, market share and brand awareness. Such marketing partnerships are an effective way to stretch your budget, according to Inc. Magazine. They are limited only by creativity and motivation. For example, airlines now partner with phone companies to award frequent flier miles for placing calls, explains Inc. To exploit the most benefit from a cross-promotion, adhere to a few simple strategies.
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Instructions
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Define specific goals. For example, analyze why a cross-promotion will be a better marketing option than your normal, proprietary sales and public relations capabilities. Identify the key reasons why a cross-promotion should be pursued and what your goals will be. Draft a formal written plan that lays out all of the details and metrics, such as anticipated sales growth or increased visibility in the marketplace.
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Identify suitable partners. Make sure that you and your prospective cross-promotion partners are a "natural fit", advises Inc. For example, look for potential partners that share your customer profile or your reputation for excellent service. Seek partners whose key brand attributes match your own. Otherwise, you risk confusing your customers -- and your partner's -- or damaging your brand.
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Do your homework. For example, research a prospective partner's former cross-promotions to learn what worked and didn't and why. As in any other aspect of business, knowledge is power. And potential partners will appreciate that you did your homework and understand their fundamental business strategy. In turn, that allows you to make a case for how a cross-promotion with you will benefit them.
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Enhance each other's credibility, notes Inc. For example, the magazine reports by aligning herself with six business-to-business service providers, a Washington state financial planning specialist used a cross-promotion to gain access to new prospects, while also enhancing her company's image. By jointly publishing a quarterly newsletter with her new partners, the financial planner -- and her partners -- reduced their individual marketing communications costs while also promoting each other's expertise.
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Exploit complementary resources. For example, Inc. says a software company that wanted to promote its products to children partnered with a cookie company to create a cross-promotion that provided free software for schools. The cookie company placed a coupon for the software on its packaging and the software company promoted the cookie company in computer stores. As a result, sales of the children's software rose 13 percent during the three-month promotion.
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Strive for synergy. Define how "the sum of the parts" in the cross-promotion is greater than the whole, recommends Inc. For example, the magazine reports a New England toy retailer allied with five other local independent toy retailers to compete on a united front against major national chains such as Toys R Us. By the same token, a beer distributor can achieve synergy with a potato chip or popcorn manufacturer, or a boat builder can benefit from a cross-promotion with a local retailer of fishing or diving equipment.
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Develop a comprehensive written proposal. Outline the benefits that your cross-promotion partner or partners will receive and how you can add value to their business. Be clear about what you expect in return and how success will be measured.
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