The Cooperative Marketing Approvpriate for GGI - Essay Example

Cooperative Marketing and GGI Introduction: Cooperative marketing is a techniques used by small scale businesses to build a brand in cooperation withother well known brands. Considering Global Gadget Imports (GGI), it is seen that the company has very small operations and the company is working towards building a better brand name and image for itself. There are a number of companies who are either new to the market or they their marketing are in the early development stages. One such example is that of GGI.

For companies that fall into this category, the funds that they can invest for marketing is low and hence, cooperative marketing is one of the best modes of marketing. Value of Cooperative Marketing: Cooperative marketing is a method of marketing that is undertaken by companies or manufacturers in sync with suppliers, distributors or wholesalers to invest in the advertisements. In most cases the manufacturer helps underwrite a part of or the entire cost of the advertising cost that are paid by the retailers.

The major value that this form of marketing creates for the companies is that it provides a reduced rate for the advertisements, which otherwise is very expensive. Also because of the cooperative marketing, the load of the advertisement cost reduces, thereby allowing the companies to use better quality and more advanced advertisement techniques (Bearden & Laforge, 2003). This is helpful as it makes the adverts attractive and thereby grabs attention of the customers. Also the scale of reach of the company is also much higher.

It also creates a value for the brands and provides a branding awareness for all the parties of the cooperative marketing. Also, there is an increased creditability for GGI and will also leads to GGI having a wider and stronger customer database. Cooperative Marketing Approaches: One of the best and most useful approaches is one where the retailers and suppliers can move online together. This can include placing of advertisements and banners on each others website (Jobber, 2004). This forms leverage for the revenue and provides a growth and increase of sales.

Also, apart from advertisements creative cooperative marketing can lead to reduced cost of inventories for the marketers, because of the better relations between the retailers and the suppliers. Use of the strong relationship can also be made by providing each others produces as a sales promotion. These sales promotions can include things like providing the customers with an item of the other free with every product sold or even buy one get the other half price. Choice of Partner: Choice of partners for cooperative marketing is a very important decision.

While choosing a partnering company, it is important that GGI considers a company which can help provide a good growth potential. Also the company chosen should be one which can provide a positive brand association and not one which would cause a negative marketing effect on the customers. Also it is very important that the partners are chosen to help improve the efficiency of each other. Also another very important aspect that requires to be considered is the ease of management among the companies is also a very important aspect that requires to be considered (Kotler & Keller, 2006).

Lastly, it is also important for a company to choose a company which has easy coordination in terms of the multi product departments. This will provide better and simpler processing and coordination. GGI’s Cooperative Marketing: Considering Global Gadget Inc. the company has a number of options in terms of its cooperative marketing. Firstly, the company can partner with other home décor stores. This could be used as a mode to market GGI as well and thereby increase the market presence of the company.

Also GGI can partner together with other websites selling home décor and advertise or even place a link to their own website. This will help GGI improve an increase the traffic to their website and thereby increase the sales and revenues for the company (Kotler & Armstrong, 2007). Also GGI could deal with more Asian companies and entire into contracts where the companies could supply as per the needs of the company or even include drop shipping. Drop shipping is for the online orders where the Asian companies could directly send the product to the customers once GGI receives the order on their website.

Lastly GGI also has the option to partner with direct marketing firms and use this as a mode to improve its own direct marketing efforts. Conclusion: Based on the study of cooperative marketing, it is clear that GGI can benefit from the concept and can be very useful tools in the current position where the company is making complete efforts to improve the brand awareness and the brand recognition. Bibliography Bearden, W.O., and Laforge, R. W., 2003, Marketing, Principles and Perspectives: Principles and Perspectives, 4th edition, January 2003, Irwin Professional Pub Jobber, D.

, 2004, Principles and Practice of Marketing, 4th Edition, McGraw – Hill, Berkshire Kotler, P., and Keller, K.L., 2006, Marketing Management, 1 January 2006, 12th edition, Prentice Hall Kotler, P., & Armstrong, G., 2007, ‘Principles of Marketing’, 12th edition, 9 March 2007, Prentice Hall