By developing a strategic marketing alliance plan, you can easily generate more revenue with less effort and expenditure. Alliance marketing is similar to Joint Venture Marketing except it does not always involve the creation of a company and brand in its own right to sell and market the product or service.
Why A Strategic Marketing Alliance Makes Sense
Marketing alliances are a form of partnership, defined by Anderson and Narus (1990) as the “…mutual recognition and understanding that the success of each firm depends in part on the other firm….” They are intended to amplify and/or build user awareness of benefits derived from these complementary brand.
Without question, having a strategic marketing alliance plan in action can attract the best customers from those people and brands that already trusted. Below, I have provided a video that details the 5 key components that make this alliance marketing strategy a crucial asset to your marketing actions. It allows you to be proactive versus waiting for word of mouth to generate. Yet, alliance marketing has the same power as word of mouth.
Definition of “Strategic Alliance”
“An arrangement between two companies that have decided to share resources to undertake a specific, mutually beneficial project. A strategic alliance is less involved and less permanent than a joint venture, in which two companies typically pool resources to create a separate business entity. In a strategic alliance, each company maintains its autonomy while gaining a new opportunity. A strategic alliance could help a company develop a more effective process, expand into a new market or develop an advantage over a competitor, among other possibilities.” – Investopedia
Strategic Marketing Alliance: The Basics
Exchange of leads is the most common usage of alliance marketing. For example, a consultant friend told me about an offline alliance he set up for his customers. A wedding coordinator referred his customers to a baker who did wedding cakes, and the baker would refer his wedding customers to the coordinator. They each gave discount coupons to their customers to use with the other merchant. Another common way is to subcontract work for another company. Or you can bundle several services into one overall package, with several small business providing those services to the one sale. There are many ways to develop a marketing alliance and your creativity and ingenuity are really the only barriers.