What is Alliance Marketing? Alliance Marketing occurs when two or more companies come together to jointly promote a service or sell a product. It involves developing a particular understanding of prospective business partners and also the ability to communicate with both that company and target consumers.
Example 1: If company A is really good with manufacturing and company B is expertise in marketing, then both can be combined to avail mutual benefits.
Example 2: In a Mall, companies take the advantage of the traffic and offer car cleaning service.
Types of Alliance Marketing:
Advertising- Advertising a commercial that can be poster or video with multiple brands presence in it.
Causes- The companies join hands to support a particular cause.
Distribution Agreements- There is a written agreement where a brand agrees to distribute another firm’s products.
Licensing- A song or a cartoon character might be popular among people. When a brand uses that song or character with a mutual agreement is called Licensing
Promotion- Destination marketing agreement between an airline and a local tourism marketing board for joint sales or promotional activities. The ad of the airlines might feature the destination and the ads of the tourism board may feature the airlines speciality.
Press Releases- To attract media and social media attention, the firm issues joint press releases to highlight a shared initiative.
Product Development- When a car brand promotes the features of their car’s speakers that are from a different brand.
Technology Alliances- Firms share the technology standards that help the chance of widespread adoption.
Therefore, Alliance Marketing helps to better adapt to changing market environments and raise marketing power.