Alliance marketing

History

Alliance marketing is built for controlling organisation's marketing cost. Distinctive from coexisting marketing, which is based on the game, alliance marketing is based on strategic perspective considering organisation marketing operation, from the interior to exterior resources. Exterior resources can be, for example, organisation's public relation, environmental resources, supplier, political environment.

The role of alliance marketing is to provide the organisation a way to promote its product while producing, advertising and making pricing strategy. The earliest alliance marketing is in the form of marketing economic union, price alliance and service alliance.

Types of alliance

Alliances of non-competitive businesses.

This is alliance form when two or more organisation join together to offer end-to-end service to the same customer. For example, auto-repair business joins together to serve the customer.

Destination alliances

This is where tourism industry organisation merge marketing resources to promote their location or destination to tourism. For example, the tourism industry in South Pacific where individual organisation have weak marketing resources, corporate to promote eco-tourism.

Technology alliances

This is a form to advertise new devices or concept, and to join resources and marketing power together. The alliance used to avoid failure to compete with alternative technology and ensure they have the chance to research and develop the technology.

Alliances to expand into new markets

It is useful when an organisation requires a huge investment of resources and to develop new distribution channels. For example, organisation establish an international market needs an alliance to a local company to enter the new foreign market.

Domestic expansion

This forms of alliance help the organisation expand domestically by having more resources and marketing power. For example, the alliance between Pepsi and Starbucks create a bigger distribution network for ready-to-drink beverage, which gives revenue to both organisations without direct competition. Another example can be an alliance by the Japanese company between Sony and Ericsson corporation to sell mobile phones together.

Why use alliance marketing

1. Gain access to different customer by combining the marketing resources, which include targeting consumers together.
2. Gain specialist knowledge and marketing methods.
3. Reduce cost by sharing resources
4. Share idea and responsibility.
5. Gain access to new market, for example, entering a new market in another country.

Marketing economic alliance

Marketing economic alliance is a union that aims to units and organise marketing elite from a different region. To condense internet resources, organisation resources and personal resources all together, consequently, alliance marketing.

Marketing economic alliance is in forms of combining industry or regional marketing method with resources and regional advantages. It is combining marketing knowledge, marketing examples, marketing practice, marketing idea together.

Marketing alliance is the outcome of marketing economic alliance, it helps to better adapt to changing market environment, raise marketing power.

References

References

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