Defining Co-branding and Co-Marketing

Co-branding refers to several different marketing arrangements:

Co-branding, also called brand partnership,^[1] is when two companies form an alliance to work together, creating marketing synergy. As described inCo-Branding: The Science of Alliance:^[2]

Collaborate marketing

Co-marketing (Collaborate marketing) is a marketing practice where two companies cooperate with separate distribution channels, sometimes including profit sharing. It is frequently confused with co-promotion.

Cross-marketing describes the practice where two individual entities companies exchange marketing channels for mutual benefit. No new product, service or brand is created here.^{[citation needed]}

Examples:

• link or banner exchanges
• "Intel Inside" on PCs

Co-marketing describes the practice where two individual entities companies create and jointly develop a new product, service or brand (and normally jointly promote it).^{[citation needed]}

Co-marketing has of recent become very prominent in the entertainment industry. This typically means partnerships between brands and entertainment properties such as television shows, films, and music acts.^{[citation needed]}

Examples:^{[original research?]}

• Apple and Nike jointly developing a new service for joggers
• Omega and the James Bond franchise partnered to promote the films and the company's watches
• Companies such as The SMC Group specialize in entertainment co-marketing, and have negotiated a number of deals including Alexandra Burke and Sure Deodorant, Shaggy and Logitech Ultimate Ears

"the term 'co-branding' is relatively new to the business vocabulary and is used to encompass a wide range of marketing activity involving the use of two (and sometimes more) brands. Thus co-branding could be considered to include sponsorships, where Marlboro lends it name to Ferrari or accountants Ernst and Young support the Monet exhibition."

Co-branding is an arrangement that associates a single product or service with more than one brand name, or otherwise associates a product with someone other than the principal producer. The typical co-branding agreement involves two or more companies acting in cooperation to associate any of various logos, color schemes, or brand identifiers to a specific product that is contractually designated for this purpose. The object for this is to combine the strength of two brands, in order to increase the premium consumers are willing to pay, make the product or service more resistant to copying by private label manufacturers, or to combine the different perceived properties associated with these brands with a single product.

Commensal (symbiotic) marketing

Co-marketing: Commensal (symbiotic) marketing is a marketing on which both a corporation and a consumer, country and a country, human and nature can live. ７Cs compass model^[1][2][3] is a framework of Co-marketing:Commensal marketing (symbiotic marketing).

• (C1)Corporation – The core of four Cs is corporation, while the core of four Ps is customers who are the targets for attacks or defenses. C-O-S (Organization, Competitor, Stakeholder) within the Corporation. The company has to think of compliance and accountability as important.

The four elements of the ７Cs compass model are:

• A formal approach to this customer-focused marketing mix is known as Four Cs (Commodity, Cost, Channel, Communication) in “７Cs compass model. The four Cs Model provides a demand/customer centric version alternative to the well-known four Ps supply side model (product, price, place,promotion) of marketing management.
  • Product → Commodity
  • Price → Cost
  • Place → Channel
  • Promotion → Communication
• (C2)Commodity – (Original meaning of Latin: Commodus=convenient) : the product for the consumers or citizens. Not product out.
• (C3)Cost – (Original meaning of Latin: Constare= It makes sacrifices) : producing cost, selling cost, purchasing cost and social cost.
• (C4)Channel – (Original meaning is a Canal) : Flow of commodity : marketing channels.
• (C5)Communication – (Original meaning of Latin:Communio=sharing of meaning) : marketing communication : It doesn't promote the sales.

The compass of consumers and Circumstances (environment) are:

• (C6)Consumer – (Needle of compass to Consumer)

The factors related to consumers can be explained by the first character of four directions marked on the compass model:

• N = Needs
• W = Wants
• S = Security
• E = Education:(consumer education)
• (C7)Circumstances – (Needle of compass to Circumstances )

In addition to the consumer, there are various uncontrollable external environmental factors encircling the companies. Here it can also be explained by the first character of the four directions marked on the compass model:

• N = National and International
• W = Weather
• S = Social and Cultural
• E = Economic

Intent

According to Chang, from the Journal of American Academy of Business, Cambridge, states there are three levels of co-branding: market share,brand extension, and global branding.

Level 1 includes joining with another company to penetrate the market

Level 2 is working to extend the brand based on the company's current market share

Level 3 tries to achieve a global strategy by combining the two brands

Forms

There are many different sub-sections of co-branding. Companies can work with other companies to combine resources and leverage individual core competencies, or they can use current resources within one company to promote multiple products at once. The forms of co-branding include: ingredient co-branding, same-company co-branding, joint venture co-branding, and multiple sponsor co-branding. No matter which form a company chooses to use, the purpose is to respond to the changing marketplace, build one’s own core competencies, and work to increase product revenues.

One form of co-branding is ingredient co-branding. This involves creating brand equity for materials, components or parts that are contained within other products.

Examples:

• Betty Crocker’s brownie mix includes Hershey’s chocolate syrup

• Pillsbury Brownies with Nestle Chocolate

• Dell Computers with Intel Processors

• Kellogg Pop-tarts with Smucker’s fruit

Another form of co-branding is same-company co-branding. This is when a company with more than one product promotes their own brands together simultaneously.

Examples

• Kraft Lunchables and Oscar Mayer meats

Joint venture co-branding is another form of co-branding defined as two or more companies going for a strategic alliance to present a product to the target audience.

Example:

• British Airways and Citibank formed a partnership offering a credit card where the card owner will automatically become a member of the British Airways Executive club

Finally, there is multiple sponsor co-branding. This form of co-branding involves two or more companies working together to form a strategic alliance in technology, promotions, sales, etc.

Example:

• Citibank/American Airlines/Visa credit card partnership

http://en.wikipedia.org/wiki/Co-branding