How Business Partnerships Can Boost Your Marketing Budget
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When businesses partner up, this is a major departure from the usual competitive isolation that drives most companies. All of a sudden, businesses are being more amicable towards each other, and they are also helping each other to achieve some kind of common goal. This often reveals that the synergistic relationship being formed leads to a more efficient use of both business’s resources. As a consequence, here are four ways businesses partnering up can significantly cut marketing costs for one or both businesses involved in the partnership.
The Component Supplier Advantage
Often business partnerships are formed when one company needs a supply of components created by another company. The company building the product that uses the other company’s components will often advertise that they are using the component manufacturer’s components in their retail products. This not only creates more business for the component manufacturer, if the company buying their component’s increases sales volume on the product retail end, but the extra income and exposure can lead to a huge boost in the component manufacturer’s marketing budget as a result of this kind of supplier relationship.
Shared Brand Value
Another area where businesses boost their marketing budget arises when two or more companies identify value in sharing the marketing costs to help bring each other’s brand into new markets. For example, a restaurant may help out a toy manufacturer by selling their toys as part of an exclusive product offering along with a kid’s meal. Likewise, the toy manufacturer might offer a coupon for use at any of the chain restaurant’s locations. This situation ends up being a win for both businesses and for the end customer by creating a situation where everyone gets something of value. For the businesses, this makes it possible for them to reach consumers they might not normally reach without having to market directly to that portion of the consumer base.
A Digital Marketing Boost
Sometimes a partnership between two businesses comes with marketing perks. By joining a group of businesses as partners, one of the companies may offer free or reduced priced digital marketing services to the other partner businesses. This type of partnership marketing may provide a huge boost to marketing budgets – especially if one of the marketing perks has to do with improving and maintaining SEO for everyone involved.
The power of online marketing is that this can create many opportunities for free or reduced marketing costs. Thus, boosting a company’s marketing budget and helping it to stretch further than it normally would. One way business partnerships achieve this goal is by making links available on their company website to other partnering business websites. When all the partnering companies do this, it creates a huge traffic network which sends consumers around from one business to another inside the network. In turn, all the partner businesses benefit from a major increase in website traffic.
As companies begin to understand the value of partnering up together, marketing costs tend to plummet for these businesses across the board. This means money they used to spend on marketing can even be directed towards other company operations if necessary. The other side of this coin is that newer startup companies can use this type of strategy to help eliminate many of the initial marketing costs they cannot so easily afford.
Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on Twitter and Facebook: @RachelleWilber.
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