Posted in Marketing and Strategy Terms, Total Reads: 1197
Definition: Affinity Marketing
It is a type of marketing of goods and services by associating or partnering with other firms, gaining brand loyalty and awareness through the synergy created by the affinity created between similar or complementary firms or organisations.
Affinity marketing is the opposite of composite marketing. Affinity marketing can be in the form of cross endorsements between partnering organisations, shared incentives for participation among the organisations and enhancement package of benefits for consumers. Affinity marketing is becoming rampant in e-commerce with the sharing of referrals between partners through hyperlinks, banner ads and icons.
Some of the reasons why affinity marketing should be used are that: we can have cross selling of products to existing customers, group marketing effort to individual niches, negotiate mutually benefit marketing relationships, solicit endorsements through association with many members etc. Affinity marketing is common amongst services like gas stations, airlines, banks, hotels etc.
Some of the examples of affinity marketing would be J P Morgan Chase partnering with Amazon.com, the e-commerce retailer. They offered the Amazon.com rewards Visa card and gaining synergies by catering to online shoppers of the world’s largest online retailer. It is a win-win situation for both parties. Chase bank increases its overall customer base, and Amazon is likely to get more people buying from it through the incentives offered for those credit card users.