Teaching an old dog new tricks
Marketing has evolved, but its role in the dynamic of a company has remained the same. As a marketer, new goals have developed that put more emphasis on the role of the consumer, a term known as the prosumer (Colapinto, 2014). The prosumer is described as the consumers’ involvement in brand value (Colapinto, 2014). This is where globalisation is changing the way marketers do business. Practices such as media convergence and co-creation are just a couple examples of the evolution of marketing side-by-side with globalisation (Colapinto, 2014). Globalisation is key for this new evolution in marketing because consumers are being overwhelmed with thousands of brands, and without a direct relationship with the brand, they become forgotten due to the plethora of products being marketed (Colapinto, 2014). As the consumer gains more power, marketers are teaming up with other firms in an attempt to increase cultural inter-connectedness, as well as strengthen international reach to more people (Thoumrungroje, 2004).
As a result of the expansion of international relationships, the idea of these alliances being formed is huge in the world of marketing and business (Thoumrungroje, 2004). The alliances formed between partners and customers can make or break a company’s ability to successfully reach a strong international audience (Thoumrungroje, 2004). Theseco-marketing alliances’ primary focus is to use different parts of the value-chain to strengthen their campaign by pooling resources, something that has been made much easier due to the idea of globalisation (Thoumrungroje, 2004). This is a major advantage due to the fact that marketers are growing increasingly more capable of resonating stronger customer awareness and stronger marketing positions with more resources at their fingertips.
The importance of co-marketing alliances
Co-marketing alliances operate under the idea that the success of each firm depends highly on the other firm (Buckling and Sengupta, 2009). The most integral part of a co-marketing alliance is maintaining a sustainable competitive advantage in the hypercompetitive world of marketing (Colapinto, 2014). A co-marketing alliance together uses resources in human resources, marketing, promotion and distribution (Colapinto, 2014). Their task is to “continuously keep up cutting-edge positions in markets given the fast-pace technological advancements in the globalization era” (Colapinto, 2014). They quickly, effectively, and efficiently can make decisions based on the fast-changing market in order to find optimal success in highly competitive areas that one firm would not otherwise be able to do on their own (Colapinto, 2014). Their reach is most successful when it comes to international marketing, and reaching a wider audience (Colapinto, 2014). Because of increasing global opportunities this allows marketers to work together to stay on task while also decreasing costs (Colapinto, 2014). Thus, co-marketing alliances are more successful than a firm trying to reach an audience on its own. An earlier example of a co-marketing alliance is Microsoft and IBM for the MS DOS operating system in the 1980’s, which used this advantage to obtain the “position of the dominant PC software firm” (Thoumrungroje, 2004).
So why does this matter?
It is important to understand that the idea of globalisation and the rapid pace of competition and technology are changing the way businesses are run. No longer is there a confinement to a business running as its own entity, it is more beneficial for a company to ally with another firm in order to maintain a competitive advantage without over-shooting their budget. Co-marketing alliances, as a result of globalisation, are just fueling the fire when it comes to spreading the reach a company has on the international trade of goods and services. Thus, the more companies expand internationally the more powerful globalisation becomes, and the cycle carries on. As a result of globalisation taking over, national borders have nearly disappeared and free-trade has made geography and time trivial when it comes to doing business and connecting to each other (Vikas, 2010). Companies can increase their profitability through this globalisation and alliance, and they can also interact with people who share different views and cultures, further breaking the barriers of geography (Agarwal, 2010). More so, companies that are forming these alliances are setting themselves up for more overall success, they are using globalisation to their advantage and making the most of their competitive advantage in order to have the most success in a world that is dominated by more products and brands than ever before. It’s a dog eat dog world when it comes to marketing, and with the globalisation era in full-swing, marketers must be smart about how they do their business.