Cross Promotional Marketing

Last Valentines Day, six neighborhood businesses including a bookstore, department store, deli, florist, candy store and card shop joined forces for a weeklong promotion. The bookstore hosted cooking demonstrations by the author of a book on romantic meals, which used cookware from the local department store and food from the nearby deli. The finished meals were displayed with offerings from the local florist, candy store and card shop, and health information was offered by the local Heart Association.

This is not an isolated incident. Cross-promotional marketing is a growing phenomenon and one of the least expensive, most efficient, least time-consuming and most-credible methods for marketing a business. Simply put, cross-promotional marketing is the act of strategically aligning businesses that target the same market but do not directly compete with each other. Cross promoting provides an avenue to reach larger audiences for less money by pooling resources (time, money ideas, contacts) to get more bangs for the marketing buck.

Why Cross Promote?

Kare Anderson, author of Walk Your Talk; Grow Your Business Faster Through Successful Cross-Promotional Partnerships, published by Spiral Publishing, suggests that cross-promotional marketing offers several benefits to businesses because it helps you:

­ Stand out in a crowded marketplace.

­ Stabilize cash flow.

­ Generate more reasons to buy and buy more.

­ Improve support of community causes.

­ Reach more prospects, more frequently

­ Save money

­ Build credibility

­ Have fun.

Cross-promotional marketing is more than a marketing tool; itís a frame of mind. There are unlimited possibilities for cross promotions. Most businesses have several potential cross-promotional partners who serve the same customers in a noncompetitive way The trick is to spot opportunities that already exist within your business network, neighborhood and community.

Targeting Your Customer

Customer knowledge is the cornerstone of cross-promotional marketing. Knowing what your customers do especially when they are not doing business with you will help you spot ideal cross-promotional partners. Customer-buying patterns always relate to other non-competing businesses. Total knowledge of your customer base is essential for choosing the right partners, creating the perfect collaboration and defining whom you want to reach through your cross-promotional strategies. The following questions will help you develop a specific, accurate profile of the customers you want to reach:

­ Where do your customers live and/or do business?

­ How much are they willing to spend on your product or service?

­ What is their occupation or line of business?

­ What are they trying to achieve?

­ What do they have in common with each other?

­ How did they find you?

­ Why do they use your product or service?

­ Why have they chosen you over your competitors?

­ How often do they do business with you?

­ Where do they go before and after they see you?

­ What other businesses do they patronize when they are in your area?

Describe your customers in the most specific terms possible. Isolate particular industries, businesses and buying patterns. Go beyond generic, one-size-fits-all customer descriptions and focus on specific traits and characteristics.

Assembling Your Cross-Promotional Team

"The goal of cross promotion is to reach more people, more frequently with messages that position your product or service in a favorable way" says Anderson. "You are looking for partners who will help you do that."

Choose your cross-promotional partners on the basis of who they serve, not what they do. Once you fully understand your customers, you will begin to identify partners who complement your business. Your best allies are organizations and businesses that:

­ Serve the same customers but do not compete with you.

­ Serve people you want to attract to your business.

­ Have a reputation and name that will lend prestige, credibility or value to your promotion.

­ Have buying cycles that complement or can be leveraged against yours.

­ Are involved in similar activities or events that you are.

Getting Started

Cross-promotional teams can pursue joint advertising campaigns, media events and direct mailings. Businesses can offer discounts on each otherís products or services or display the signs or fliers of their partnerís businesses. Creativity is the key Look at things you already do to promote yourself. Seek partners who can help you strengthen your existing marketing efforts, share marketing costs and, through collaboration, can expand your customer base.

As an example, when I owned a moving company I worked with a local packaging store and a local storage facility to promote our businesses. They displayed my companyís booklet, "Important Information For Persons Moving Household Goods," in the business offices. In exchange, I sent all of my customers to their companies for packing supplies and storage space. In another case, we organized a "relocation group," which consisted of a printer, telephone installer, office furniture dealer, commercial real-estate agent and a storage facility companies that provided services to businesses that were relocating. We then developed and shared the cost of a successful direct mailing to property managers in the area.

The key is complementary relationships and mutual concerns. Most businesses have several potential partners who are already serving the same target market. Consider your current vendors, network at trade organizations or introduce yourself to businesses in your area. Finding cross-promotional partners can be as easy as opening your address book.