Co-marketing

What Does Co-marketing Mean?

Co-marketing is a form of automated marketing in which an electronic storefront (or a company that sells its merchandise or services over the Internet) has formed a partnership with another electronic storefront in which each company markets the other’s online products. At other times, co-marketing is defined as two companies that jointly develop and market a product online.

Advertisements

Techopedia Explains Co-marketing

Co-marketing is a way to share marketing expenses, which can certainly be helpful for businesses looking to cut costs. Hypothetically, co-marketing should always yield mutual benefits, so companies entering into a co-marketing arrangement must ensure that they share common marketing goals and have similar company philosophies.

A great advantage to co-marketing is that by combining and integrating customer data, co-marketing companies can have double the customers they would normally. The disadvantage is that if one of the companies doesn’t possess good business sense or is negligent in its business practices, this can affect the other company’s reputation as well.

Advertisements

Related Terms

Margaret Rouse
Technology Expert

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.