In business two or more organizations comes together to produce some kind of synergistic effect or result. Similar happens in alliance marketing where two or more organizations jointly undertakes marketing activities.
Alliance marketing involves pooling resources like - expertise, brand reputation, distribution infrastructure, or money, to produce an effect/result which would be more difficult and costly to achieve independently.
Importance of Alliance Marketing
- To gain access to a non-competitive businesses' customers - Businesses not competing with each other can promote one another, they can refer customers back and forth to increase their sales.
- To pool knowledge, expertise, and resources - Pooling expertise, resources, and efforts reduce inefficiencies and expenses.
- To turn competitors into partners
- To expand into new markets - Independent expansion requires heavy investment, resources, and development of new distribution channels. Alliance marketing makes it easy, a firm in one country can offer a product through another firm already established in another country, thus expand into new market immediately.