Innovation is the key to Profit Maximization. And Integration is the key to Innovation. 4 Part Series Continues until 4/17
This tip, coined by our own at International Consulting News, is essential for understanding marketing consulting. In order to expand business one must create partnerships that will translate into win-win situations and mutually beneficial outcomes.
In mathematical terms Advertising integration can be considered as A + B = C^2.
If Company A and Company B integrate resources then the effect will be exponential.
For Instance, if company A wants to advertise 12 times in the next year. And Company B wants to do the same. It might be beneficial to put resources together and advertise under one big brand. This will effectively cut costs. Through becoming a large supplier with increased bargaining power (one of Porters 5 forces), companies can achieve an effect similar to the Walmart effect . A group of consumers may team up to become a big client and in turn get better prices with more bargaining power.
Another advantage of Integration is an increased market radius or enhanced market reach. This will allow for the companies to reach a larger market share. This effect can be noticed more apparently in the automotive industry. Local dealerships often come together under one regional brand like Thoroughbred Ford.
Face-to-Face & Client Marketing -
Company A might want to create more market awareness for its products. Company B wants to do same. The two companies might want to mutually look at some product awareness marketing strategies. One of the most common forms of market awareness consulting is event marketing. Through events one can have a large captive audience over large amounts of time. Examples of some events are:
- competitions between products or services
-demonstrations of products or services
-free give-aways and lottery/prize-like activities
-unveiling or a launch party of the products
- or other innovative event solutions
In our case the two companies might choose to participate in a competition between two products or companies. No matter whether a company chooses competition, mutual launch or equal respect awareness events, the audience obtained from this will be exponential, thus solving our equation once again for successful partnerships or integration:
A + B = c^2
An example of this would be a group of artists or designers. Often artists choose to put together an event where artists compete against each other. These artists hold live art composition competitions that are publicly displayed and promoted. Inversely artists might choose to have a exhibition or showcase where all artists are featured. No matter what the difference may be in the event structures, our equation holds true; Thus, the results will be exponential.
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