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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.
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.