Importance of Co-branding in direct marketing consultancy

Areas Where Direct Marketing and its Consultancy Services can Play a Part

To launch a new business in the market, initially you are required to spend a huge amount on promotional campaign for your business. This is because market needs to be notified about you and your business. You want to create a NEED in the consumer mind and then create the answer to this need that is your product or service. This is the marketing technique that is commonly adopted. Direct marketing and its consultancy services steps in this occasion. Click here to learn more on this topic.

Services in direct marketing consultancy are frequently offered in situations such as these:

Reaching new customer base
Retaining old customers
Creating a niche market
Broadening the scope brand awareness
Database segmentation and filtration

There are other reasons, but we will confine our understanding of the above topic surrounding the listed ones.

Why Co-Branding

For a new market entrant the Return On Investment (ROI) is relatively low at the outset. This is simply because at the start, apart from the cost of establishing the business, marketing costs eat up a significant share of your revenue. But the good news is that you can minimize your marketing cost. For example, services in direct marketing consultancy are now exploring the idea of co-branding any new business with existing ones. By that, we mean that you do not need to co-brand with your competitor's business. Rather, you can look out for alliance partners for yourself, and co-brand with their product/service.

Explanation

A business that is global in outlook needs to leverage the resources that are scattered in different places and forms. These scattered resources can be brought under one integrated system - the business operational support system (BOSS), so that you can reap its benefits seamlessly. To do so, you need to identify your partners and their resource pool. Then, you go on to form strategic alliance partners. Services in direct marketing consultancy will help you to identify your probable partners and in fact strategize your marketing plan to form these alliances.

For such alliances, the rule that direct marketing consultancy services follows is - you benefit and let your partner benefit too. Bind your partner's resources so that your competitor does not have a chance to enter into the value chain and take your place. In this way you can achieve a solution that gives both of you the best deal in business, and an offering which your competitor cannot match.

Direct marketing techniques and consultancy provide ample scope to plan and strategize the best deal, and to work it out for you. Initially, it may seem that you have a significant expense. But, if you compare this expense with that of the marketing cost which you would have incurred had you entered the market alone, it is much less. Learn about the best direct marketing consultancy service provider.

By introducing different businesses offering a suite of different products/services that are relevant (not in competition to your product/service) and in line with your own product/service offering under one platform, you generate a resource pool. This will benefit not only you but also your partners. Services in direct marketing consultancy emphasize the creation of such a platform.

Cost Advantage

In opting for direct marketing, you will notice that your marketing cost has decreased dramatically. This is assisted by co-branding your offering with that of your partner. Symbiosis - the form of co-existence in biology - plays a dominant role in direct marketing consultancy technique.

When you co-brand your offering with that of your partner, naturally your cost of marketing reduces, since you are also promoting your partner's business and vice versa. Not only that, but you can exploit your partner's customer base too. You create new customers and your partner gets a chance to embark on a brand adherence program, aimed at customer retention. This aspect of direct marketing consultancy is now a major force in creating value chains for consumers worldwide.

Case Study

If you aim to be the next Cadbury, then rather than embark on an extravagant advertising campaign, build an alliance partnership with a complementary gifting house or a company that is engaged in the production and promotion of gift cards. Gifts and cards can serve as an excellent combination of product packaging that has universal appeal. Your high quality confectionery will add a new dimension to this package. If offered as a gift pack on occasions like Valentine's Day, or even promoted as a birthday gift, you can reach out to thousands of customers at one time, at a much lower cost.

This is the boon of direct marketing consultancy services - the co-branding option.

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