Definition
Alliance Marketing occurs when two or more company collaborates to jointly promote and sell a product, services, or even a concept. It can take place at any scale including international collaborations as long as it provides a benefit to all the stakeholders involved.
It can be employed virtually by any business when it identifies a partner interested in mutually beneficial cooperation.
Fundamentally it involved the pooling of resources whether those resources are knowledge expertise, distribution infrastructure, brand recognition, reputation or simply money to achieve a result that would be more costly to achieve independently.
Type
- Alliances of Non-competitive Business:- This would include alliance between two business with no competition.
Example: Collaboration between a baker and a florist or between two services providers -car repair shop and car rental business teaming up to offer end to end services to the same customer.
- Destination Alliances:- Various business units collaborate to promote a destination to get benefited
Example: Hotels, restaurants and tourist business pool their resources to markets the location to prospective travelers.
- Technology Alliances:– Often are formed to promote a new device and concept.
In this case, firms that potentially complete in offering new technology face greater competition from other firms representing the existing established alternative technology.
An alliance allows these companies to create greater market presences to displace the old technology and ensure that they get to establish the standard for production of the new technology.
- Alliances to Expand into New Markets:– Useful, since independent expansion requires a huge investment of resources and the development of new distribution channels.
This is especially usefully for tapping into overseas market firms in one country can offers products through another firm already open in another country thus tapping into new markets.
What is Alliance Marketing
Article by Aditya Mondanal