Piggyback Marketing

Posted in Marketing and Strategy Terms, Total Reads: 4379
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Definition: 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.

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