Co-marketing Funds

Posted in Marketing and Strategy Terms, Total Reads: 711

Definition: Co-marketing Funds

Co-marketing is a type of collaborative marketing, wherein one online storefront has a partnership with another online store and each company markets one another’s products. Co-marketing can also be defined as two companies jointly developing and marketing a product. The funds allotted for such an activity is termed as co-marketing funds.

Co-marketing is generally helpful in cutting business costs and share marketing expenses. Companies entering into a co-marketing agreement should ideally have common marketing goals or complementary product profiles.

One of the disadvantages that might arise due to co-marketing is that image of one firm affects the image of the other. If one company has negligent business practices and customers are not in favour of it, then it affects the image of the other company as well.

Example: one example of co-marketing can be Tripadvisor advertising in Makemytrip and vice versa, which is like a complementary service of transportation and lodging & place reviewer. Each company has a chance to increase its customer base by getting everyone who visits Tripadvisor visit Makemytrip and vice versa. The funds allotted by both the companies in this exercise will be the co-marketing fund.


Hence, this concludes the definition of Co-marketing Funds along with its overview.


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