Cooperative Marketing

What is the value of cooperative relationships?

Cooperative marketing is a partnership between two or more businesses that have joined forces to “create a stronger, more effective marketing campaign” (Irons, 2006) whose goal is targeting a larger consumer audience while splitting the cost.

Besides advertising, what are other creative ways companies can engage in cooperative marketing?

Cooperative marketing can involve sharing mailing lists, ad space, airtime, sponsoring a charity or educational event, and internet links or affiliate programs, as well as cross product advertising.

How should a company decide with whom to partner in joint marketing efforts?

“It is important to find a compatible fit for cooperative marketing. For example, if you are in the insurance business, then partnering with a financial planner might make good sense” (Irons, 2006) Partnerships should be evaluated based on the marketing plan, the businesses mission and vision, and the partnering businesses reputation.

What are some of the effective cooperative marketing ways that GGI could use in this project?

GGI could establish a cooperative marketing plan with a local grocer. For every housewares sales X dollars or more during a set time period the consumer will receive a gift card from the grocer for X dollars. They could also share advertising space in the local newspaper. Another cooperative could be in allowing another business to place an ad banner on GGI’s website in exchange for letting GGI place a banner on the other businesses website. They could also partner with a credit card company to offer cash back on purchases.

In conclusion, GGI would be well served in establishing a co-op with a reputable business that will complement the sale of housewares. In doing so, GGI will not bear the brunt of all advertising costs; they will reach a larger market, and establish good will with the partner and the prospective new consumers.

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