Cross-promotion, Co-Marketing, Co-Branding, Complementary Marketing, Companion Marketing From Wikipedia, the free encyclopedia Cross-promotion is a form of marketing promotion where customers of one product or service are targeted with promotion of a related product. A typical example is cross-media marketing of a brand, for example Oprah Winfrey's promotion on her television show of her books, magazines and website. Cross-promotion may involve two or more companies working together in promoting a service or product, in a way that benefits both. For example, a mobile phone network may work together with a popular music artist and package some of their songs as exclusive ringtones; promoting these ringtones can benefit both the network and the artist. Some major corporations, for example Burger King, have a long history of cross-promotion with a range of partners (see Burger King advertising). The Disney Channel has also made extensive use of cross-promotion. Movie tie-ins are good examples of cross-promotion. On occasion, badly planned cross-promotions can backfire spectacularly such as 1992 Hoover free flights promotion fiasco.
If you have 1 promotional item on sale, your customers may take advantage of the promotion. If you have 2 items on sale, your customers may take advantage of both of these items. This is good if you need to move stock, but it doesn't really help the bottom line, especially if there aren't any supplementary sales.
Supermarket chains like Aldi, Coles, and Woolworths will offer a couple of dozen promotional items every week. But because their product inventory may be 10000 products, they actually don't offer that many sale items. You may have 100 product lines, and even offering 3 promotional items, you are offering a significantly higher percentage of inventory items than both Coles and Woolworths combined. Short of increasing your product range, it is difficult to compete on this very uneven playing field, that is unless you recruit another store.
Complementary retail stores are everywhere. If you are in a shopping centre, chances are that the stores on either side of you perfectly fit the bill of a complementary store.
I have lost count the number of times that I have seen a fish shop next door to a butcher. Does this mean that a promotion highlighting a “surf and turf” should happen? Absolutely! Opportunities are being lost daily if it is not happening.
Cross promotion/complementary marketing/companion promotions can take a variety of forms. Promote an Android tablet giveaway; one entry per $20 spent. Triple the entries if the customer visits the shop next door and spends the same. Add another entry if they like your Facebook page, add another 3 entries if they follow you on twitter. The number of entries that you give away is immaterial, so long as there is a perceived gain by the customer. If all customers do the same, their chances haven't actually increased. Its only if some customers do not take advantage of the addons that their chances decrease - and that's where the incentive to follow through with all the promotional events materialises.
If you haven't yet entered into a commercial agreement with the store next door or down the road or in the next suburd, then your product lines are small in comparison with some of your bigger competitors, and you are losing cross promotion opportunities.