Cooperative marketing is an agreement between two or more companies to promote or sell each others products while selling their own in order to complement each others services and provide mutual benefits. The companies involved bundle and group their products and services in the hope of reaching a common target audience. In cooperative marketing, products can complement or even supplement each other, and it can cater to different seasonal cycles.
Cooperative marketing campaigns are developed by broadening horizons and discovering common ground with other companies. Companies with related businesses can greatly benefit from cooperative marketing, as it is more time-efficient and cost-effective to band together and cross-promote services. Complementary companies, as well as direct competitors, can create effective and mutually beneficial cooperative marketing campaigns.
Cooperative marketing can be highly convenient for consumers and economically efficient for the businesses pooling their resources together. It is a type of cost-effective, mutually beneficial advertising.
Some examples of cooperative marketing include selling Coca Cola with a burger of McDonald’s at a lower price than the total amount, getting a gym membership for two months with buying sports shoes, and opening a famous multiplex in a new housing complex.
When developing a cooperative marketing program, it is important to establish a partnership with sustainable and feasible expectations. Brands and independent partners like franchisees and retailers commit to such relationships due to the ease of collaboration on market solutions.
