Alliance marketing

Alliance marketing is joining two or more organization on the purpose of sharing marketing strategy, promoting concepts, services or products.[1] Basically, alliance marketing can imply to any business as long as it finds an organization that has a mutual goal.[2]

Alliance Marketing is similar to Joint Venture Marketing.[3] Except it does not always involve the creation of a new company or brand in the right to sell its product or service.[4]

Alliance marketing is also used where a group of companies often in new technology areas come together to sell the technology concept.[5] An alliance will always have a common theme which all stakeholders can benefit from.[6] Stakeholders stands for are groups of individuals within whom the organisation has interacts and has interdependency.[7]

History

Alliance marketing is built for controlling organisation's marketing cost.[8] Distinctive from coexisting marketing, which is based on the game,[9] alliance marketing is based on strategic perspective considering organisation marketing operation, from the interior to exterior resources.[10] Exterior resources can be, for example, organisation's public relation, environmental resources, supplier, political environment.[11]

The role of alliance marketing is to provide the organisation a way to promote its product while producing, advertising and making pricing strategy.[12] The earliest alliance marketing is in the form of marketing economic union, price alliance and service alliance.[13]

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.[14] For example, auto-repair business joins together to serve the customer.[15]

Destination alliances

This is where tourism industry organisation merge marketing resources to promote their location or destination to tourism.[16] For example, the tourism industry in South Pacific where individual organisation have weak marketing resources, corporate to promote eco-tourism.[17]

Technology alliances

This is a form to advertise new devices or concept, and to join resources and marketing power together.[18] The alliance used to avoid failure to compete with alternative technology and ensure they have the chance to research and develop the technology.[19]

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.[20]

Domestic expansion

This forms of alliance help the organisation expand domestically by having more resources and marketing power.[21] 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.[22] Another example can be an alliance by the Japanese company between Sony and Ericsson corporation to sell mobile phones together.[23]

Why use alliance marketing

  1. Gain access to different customer by combining the marketing resources, which include targeting consumers together.[24]
  2. Gain specialist knowledge and marketing methods.[25]
  3. Reduce cost by sharing resources[26]
  4. Share idea and responsibility.[27]
  5. Gain access to new market, for example, entering a new market in another country.[28]

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.[29]

Marketing economic alliance is in forms of combining industry or regional marketing method with resources and regional advantages. It is combing marketing knowledge, marketing examples, marketing practice, marketing idea together.[30]

Marketing alliance is the outcome of marketing economic alliance, it helps to better adapt to changing market environment, raise marketing power.[31]

Example of alliance marketing

An example of alliance marketing is a Destination Alliance where hotels, restaurants and attractions come together to jointly fund and market their destination. The stakeholders understand that by marketing their destination jointly and pooling their resources that the marketing impact they can achieve will be stronger and benighted all stakeholders in that location.

References

  1. ↑ Mercer, D. (1999). Marketing: the encyclopedic dictionary. Oxford [etc.]: Blackwell.
  2. ↑ Marketing-schools.org, (2015). Alliance Marketing | What is Alliance Marketing?. [online] Available at: http://www.marketing-schools.org/types-of-marketing/alliance-marketing.html#link1 [Accessed 21 Oct. 2015].
  3. ↑ Morello, R. (2015). What Is Joint Venture Marketing?. [online] Business & Entrepreneurship - azcentral.com. Available at: http://yourbusiness.azcentral.com/joint-venture-marketing-11514.html [Accessed 4 Nov. 2015].
  4. ↑ Gamble, C. (n.d.). Joint Venture: The Nation's Most Influential Sourcebook On Joint venture Agreement, Online Business Ideas, Starting A Business, Joint Venture Partnership and More. p.17.
  5. ↑ Gibbs, R. and Humphries, A. (2009). Strategic alliances & marketing partnerships. London: Kogan Page.
  6. ↑ Lambe, C.; Spekman, R.; Hunt, S. (2002). "Alliance Competence, Resources, and Alliance Success: Conceptualization, Measurement, and Initial Test". Journal of the Academy of Marketing Science. 30 (2): 141–158. doi:10.1177/03079459994399.
  7. ↑ Polonsky, M. (2005). Stakeholder thinking in marketing. Bradford, England: Emerald Group Pub.
  8. ↑ Li, N.; Boulding, W.; Staelin, R. (2009). "General alliance experience, uncertainty, and marketing alliance governance mode choice". J. of the Acad. Mark. Sci. 38 (2): 141–158. doi:10.1007/s11747-009-0154-0.
  9. ↑ Gamble, C. (n.d.). Joint Venture: The Nation's Most Influential Sourcebook On Joint venture Agreement, Online Business Ideas, Starting A Business, Joint Venture Partnership and More. p.17.
  10. ↑ Drummond, G. and Ensor, J. (2005). Introduction to Marketing Concept. Elsevier.
  11. ↑ Harrington, H. (2007). Resource Management Excellence: The Art of Excelling in Resource and Assets Management. Paton Professional, p.131.
  12. ↑ Samuelsen, B., Olsen, L. and Keller, K. (2014). The multiple roles of fit between brand alliance partners in alliance attitude formation. Marketing Letters.
  13. ↑ Aswathappa, K. (2008). International business. New Delhi: Tata McGraw Hill Education.
  14. ↑ Valliani, A., Kapur, A., Joseph, D. and Rakhit, A. (2008). Network for alliance marketing. US7324962 B1.
  15. ↑ Marketing-schools.org, (2015). Alliance Marketing | What is Alliance Marketing?. [online] Available at: http://www.marketing-schools.org/types-of-marketing/alliance-marketing.html#link1 [Accessed 21 Oct. 2015].
  16. ↑ Kozak, M., Gnoth, J. and Andreu, L. (2010). Advances in tourism destination marketing. London: Routledge.
  17. ↑ Sustainabletravel.org, (2015). South Pacific Destination Alliance » Sustainable Travel International. [online] Available at: http://sustainabletravel.org/our-work/solutions-for-destinations/regional-alliances/spda/ [Accessed 4 Nov. 2015].
  18. ↑ Palmer, A. and Bejou, D. (1995). Tourism destination marketing alliances. 1st ed. [ebook] pp.616-629. Available at: http://www.sciencedirect.com/science/article/pii/0160738395000104 [Accessed 22 Oct. 2015].
  19. ↑ Woodside, A. (2010). Organizational culture, business-to-business relationships, and interfirm networks (Advances in business marketing & purchasing ; v. 16). Bingley, U.K.: Emerald.
  20. ↑ Robson, Matthew J.; Dunk, Mark A.J. (1999). "Case study: Developing a pan-European co-marketing alliance: The case of BP-Mobil". International Marketing Review. 16 (3): 216–230. doi:10.1108/02651339910274701.
  21. ↑ Baldwin, J. and Yan, B. (n.d.). Market Expansion and Productivity Growth: Do New Domestic Markets Matter as Much as New International Markets?. SSRN Electronic Journal.
  22. ↑ timesofindia-economictimes, (2014). Starbucks rides home with Pepsi. [online] Available at: http://articles.economictimes.indiatimes.com/2007-10-02/news/28451603_1_starbucks-coffee-starbucks-stores-starbucks-outlets [Accessed 3 Nov. 2015].
  23. ↑ Icmrindia.org, (2006). Sony Ericsson's Mobile Music Strategy|Business Strategy|Case Study|Case Studies. [online] Available at: http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy/Sony%20Ericsson%20Mobile%20Music.htm [Accessed 2 Nov. 2015].
  24. ↑ Richey, L., & Ponte, Stefano, editor. (2015). New actors and alliances in development (Third world quarterly (Series)).
  25. ↑ Bicen, P.; Hunt, S. (2012). "Alliance market orientation, new product development, and resource advantage theory". Jnl of Bus & Indus Marketing. 27 (7): 592–600. doi:10.1108/08858621211257365.
  26. ↑ Swaminathan, V.; Moorman, C. (2009). "Marketing Alliances, Firm Networks, and Firm Value Creation". Journal of Marketing. 73 (5): 52–69. doi:10.1509/jmkg.73.5.52.
  27. ↑ Carlson, B.; Frankwick, G.; Cumiskey, K. (2011). "A Framework for Understanding New Product Alliance Success". The Journal of Marketing Theory and Practice. 19 (1): 7–26. doi:10.2753/mtp1069-6679190101.
  28. ↑ Donaldson, B. and O'Toole, T. (2002). Strategic market relationships. New York: Wiley.
  29. ↑ Lee, Hyunchul; Kim, Dukyong; Seo, Minkyo (2013). "Market valuation of marketing alliances in East Asia: Korean evidence". Journal of Business Research. 66 (12): 2492–2499. doi:10.1016/j.jbusres.2013.05.040.
  30. ↑ Bucklin, L.; Sengupta, S. (1993). "Organizing Successful Co-Marketing Alliances". Journal of Marketing. 57 (2): 32. doi:10.2307/1252025.
  31. ↑ Baike.baidu.com, (2015). Alliance marketing__Baidu. [online] Available at: http://baike.baidu.com/link?url=6FxQojMPcXZMDSUNam9CRA-ypVFPySCNfkhk9JC2aDWl8QR-D4qXr42y13t-wLLbYjYw3qkKH0X_Lv95MgqO-_ [Accessed 22 Oct. 2015].
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