Alliance marketing

Alliance marketing is joining two or more organizations 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,[4] alliance marketing is based on strategic perspective considering organisation marketing operation, from the interior to exterior resources.[9] Exterior resources can be, for example, organisation's public relation, environmental resources, supplier, political environment.[10]

The role of alliance marketing is to provide the organisation a way to promote its product while producing, advertising and making pricing strategy.[11] The earliest alliance marketing is in the form of marketing economic union, price alliance and service alliance.[12]

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

Destination alliances

This is where tourism industry organisation merge marketing resources to promote their location or destination to tourism.[15] For example, the tourism industry in South Pacific where individual organisation have weak marketing resources, corporate to promote eco-tourism.[16]

Technology alliances

This is a form to advertise new devices or concept, and to join resources and marketing power together.[17] The alliance used to avoid failure to compete with alternative technology and ensure they have the chance to research and develop the technology.[18]

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.[19]

Domestic expansion

This forms of alliance help the organisation expand domestically by having more resources and marketing power.[20] 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.[21] Another example can be an alliance by the Japanese company between Sony and Ericsson corporation to sell mobile phones together.[22]

Why use alliance marketing
  1. Gain access to different customer by combining the marketing resources, which include targeting consumers together.[23]
  2. Gain specialist knowledge and marketing methods.[24]
  3. Reduce cost by sharing resources[25]
  4. Share idea and responsibility.[26]
  5. Gain access to new market, for example, entering a new market in another country.[27]

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.[28]

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.[29]

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

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. J.; Spekman, R. E.; Hunt, S. D. (2002). "Alliance Competence, Resources, and Alliance Success: Conceptualization, Measurement, and Initial Test". Journal of the Academy of Marketing Science. 30 (2): 141–58. doi:10.1177/03079459994399. S2CID 167414910.
  7. Polonsky, M. (2005). Stakeholder thinking in marketing. Bradford, England: Emerald Group Pub.
  8. Li, Ning; Boulding, William; Staelin, Richard (2009). "General alliance experience, uncertainty, and marketing alliance governance mode choice". Journal of the Academy of Marketing Science. 38 (2): 141–58. doi:10.1007/s11747-009-0154-0. S2CID 167756784.
  9. Drummond, G. and Ensor, J. (2005). Introduction to Marketing Concept. Elsevier.
  10. Harrington, H. (2007). Resource Management Excellence: The Art of Excelling in Resource and Assets Management. Paton Professional, p.131.
  11. Samuelsen, Bendik Meling; Olsen, Lars Erling; Keller, Kevin Lane (2014). "The multiple roles of fit between brand alliance partners in alliance attitude formation". Marketing Letters. 26 (4): 619–29. doi:10.1007/s11002-014-9297-y. S2CID 144086419.
  12. Aswathappa, K. (2008). International business. New Delhi: Tata McGraw Hill Education.
  13. Valliani, A., Kapur, A., Joseph, D. and Rakhit, A. (2008). Network for alliance marketing. US7324962 B1.
  14. 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].
  15. Kozak, M., Gnoth, J. and Andreu, L. (2010). Advances in tourism destination marketing. London: Routledge.
  16. 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].
  17. Palmer, Adrian; Bejou, David (1995). "Tourism destination marketing alliances". Annals of Tourism Research. 22 (3): 616–29. doi:10.1016/0160-7383(95)00010-4.
  18. Woodside, A. (2010). Organizational culture, business-to-business relationships, and interfirm networks (Advances in business marketing & purchasing ; v. 16). Bingley, U.K.: Emerald.
  19. Robson, Matthew J.; Dunk, Mark A.J. (1999). "Case study". International Marketing Review. 16 (3): 216–30. doi:10.1108/02651339910274701.
  20. Baldwin, John; Yan, Beiling (2012). "Market Expansion and Productivity Growth: Do New Domestic Markets Matter as Much as New International Markets?". Journal of Economics & Management Strategy. 21 (2): 469–91. doi:10.1111/j.1530-9134.2012.00330.x. S2CID 12073240.
  21. 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].
  22. 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].
  23. Richey, L., & Ponte, Stefano, editor. (2015). New actors and alliances in development (Third world quarterly (Series)).
  24. Bicen, Pelin; Hunt, Shelby D. (2012). "Alliance market orientation, new product development, and resource advantage theory". Journal of Business & Industrial Marketing. 27 (7): 592–600. doi:10.1108/08858621211257365.
  25. Swaminathan, Vanitha; Moorman, Christine (2009). "Marketing Alliances, Firm Networks, and Firm Value Creation". Journal of Marketing. 73 (5): 52–69. CiteSeerX 10.1.1.176.3547. doi:10.1509/jmkg.73.5.52. S2CID 2839729.
  26. Cumiskey, Kevin J.; Frankwick, Gary L.; Carlson, Brad D. (2011). "A Framework for Understanding New Product Alliance Success". Journal of Marketing Theory and Practice. 19: 7–26. doi:10.2753/mtp1069-6679190101. S2CID 167632380.
  27. Donaldson, B. and O'Toole, T. (2002). Strategic market relationships. New York: Wiley.
  28. Lee, Hyunchul; Kim, Dukyong; Seo, Minkyo (2013). "Market valuation of marketing alliances in East Asia: Korean evidence". Journal of Business Research. 66 (12): 2492–9. doi:10.1016/j.jbusres.2013.05.040.
  29. Bucklin, Louis P.; Sengupta, Sanjit (1993). "Organizing Successful Co-Marketing Alliances". Journal of Marketing. 57 (2): 32–46. doi:10.2307/1252025. JSTOR 1252025.
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