Piggyback Marketing - Definition & Meaning
What is Piggyback Marketing?
Sometimes, two or more companies come together to form a market strategy, where-in they represent one-another’s products in their respective target markets. This type of market strategy is called piggyback marketing.
Important components to the definition of piggyback marketing are:
• Products should be complementary ( i.e. Non-competing)
• Low-cost market-entry strategy
• Maximum promotion in the right markets
Generally firms go for piggyback marketing because:
• A local company may desire to enter into foreign markets but they do not have the required money or expertise to do the same
• A small business may not have enough money to do the required promotion for its products
• A multinational company may be looking to expand overseas to some potential markets but lacks the complete understanding of a new target audience and thus can take help from local players
A general approach to go about piggyback marketing:
• Understanding the target market is the most basic but the most important step
• Build a list of complementary businesses
• Think about the various ways that could help in generating revenues by working together
• Be creative
• Take time to find the right partner and the right opportunity
• Always keep in mind your target audience
Some examples of piggyback marketing:
• A wedding planner can enter into an agreement with a video photographer, to put a link of one’s site on that of the other
• A wedding shop owner and a florist can come to an agreement by promoting each other together by organizing a fashion show
• A hotel owner and a restaurant owner can agree to provide a complete package to the customers which may include a dinner and an overnight stay
Hence, this concludes the definition of Piggyback Marketing along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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