Give meaning of the term 'Co-operative Marketing'. Explain its objectives and features.
Answers
Cooperative marketing is any agreement to combine marketing efforts, and thus it can appear in many forms. Complementary companies, as well as direct competitors, can create effective and mutually beneficial cooperative marketing campaigns.
Economy of scale is an enormous benefit. Likewise, combining the efforts of an entire industry into one marketing campaign benefits everyone in the industry, even if they’re competing for the same dollar. The “Got Milk?” campaign devised by the California Milk Processor Board, for example, serves all milk processors and dairy farmers, including competing brands.
Resource sharing is a significant reason to cooperatively market. Buy-local organizations can hire one graphic designer, one web designer, and one marketing manager, who then produce marketing material for the group as a whole and even for member companies.
Cooperative marketers often use their power in collective bargaining as well. While one farmer may have a difficult time getting the highest price for his snap peas, 100 farmers joining forces control a significant portion of the supply, thus increasing their bargaining power.
Other forms of cooperative marketing include cross-promotion (See also Cross-Media Marketing). For instance, if one highly sought-after speaker has a large contact list, he or she may offer to promote another speaker’s book or product through their valuable contact list. Or, that person’s book publisher can partner with another publisher who’s more gifted at producing event kits and/or discussion guides to go with that book, and combine promotional forces to reach their respective core audiences. Conferences, workshops, sporting events, and festivals can also often serve as cooperative marketing opportunities for the teams, speakers, vendors, and sponsors of such events.