Every business strives to grow as much as possible, even withstanding harsh, competitive environments.
With stiff competition and globalization, your business competes with businesses around the world and tries its to push its products and sales to stay ahead.
In the market of cut-throat competition, your best bet to grow your company is likely ‘Alliance marketing‘.
Alliance marketing is a marketing effort by which two or more companies come together to share their own expertise and cut out the competition between them for mutual benefit.
For instance, one company may be strong in technology while another one may have a strong marketing base or a better reputation in the market. As such, the companies can combine both their skills to help both companies grow together.
The first advantage of alliance marketing is that because you have joined hands with a strong competitor, you eliminate stiff competition coming from them that could take away profits from your own business. Secondly, since you are using their expertise as well in your business growth you don’t have to spend money on extra resources that you would otherwise employ to grow your company.
A thoroughly planned alliance marketing campaign can help you build a strong customer base and expand your horizons. It’s a kind of joint venture settlement in which each company retains its individuality while at the same time getting the opportunity to expand its potential.
Who are the beneficiaries of this?
Though alliance marketing is an arrangement between the competitors in the business, it works well even between the two businesses who are not direct competitors to each but they complement each other’s business.
For instance, consider a garage and a vehicle towing company. If you go to any garage they usually offer the towing service but they do not necessarily have their own. Instead, most of the time garages have a partnership with other certain towing companies. As such, anyone who comes looking for towing will suggest towing the company’s name and vice versa, thus increasing business for both parties.
This mutually benefits both the parties without cutting through each other’s business directly. Thus we can say that alliance marketing can be implemented by any businesses to use each other’s expertise and resources for their own benefit.
What kind of customer does it work for?
Alliance marketing works wonders for new customers. The two companies that are involved in this venture usually exchange their existing customer base to provide them with extra benefits, thereby increasing business for both the companies mutually.
With a ready customer base of their partner company, it becomes easy for the a company to attract new customers without spending extra on separate marketing efforts.
How can you get new customers with alliance marketing?
As discussed above in this blog, the foundation for having an alliance marketing venture is two companies to use each other for mutual benefit. Every company may not be strong in each and every department or have all the expertise.
In such cases, companies employ extra resources in their endeavor to grow their business. Admittedly so, it takes a lot of planning and effort to attract a new customer.
Alliance marketing helps in the acquisition of a new customer base for a company in an easy way. You can target your customers with more benefits as you have resources of your partner company, and thus are able to offer more both to new customers, and to customers of your partner company.
Since the partner company has the expertise that you don’t have, you can use your partner company’s expertise to strategically help you in acquiring new customers for your own business.
Thus before we conclude, alliance marketing is a good way to curb competition and save on resources to grow your business and take advantage of each other for mutual benefit. It may be done within the businesses that are in direct competition or with the business that is related to yours.