Marketing Partnership Programs and Their Value on Firms Glynn & Woodside (2012) analyze the marketing programs value chain on firms. The authors emphasize that most global brands will involve themselves in some form of business-to-business marketing programs. As such, these marketing partnerships are critical in the potential financial impact of companies globally. They also offer unique growth opportunities for firms as models such as the reseller-referral create value for consumers and in turn lead to selling opportunities, a reduction in the time to close sales boosting the likelihood of purchase as well as becoming resistant to price fluctuations. Moreover, marketing partnerships come with functional advantages to specific companies. For instance, there is easy identification of legal protection through trademarks as well as inventory purposes. Such allow companies to enjoy stable earnings and the marketing expenditure is also directed towards the brand hence more profitable business associations among the partners. Besides, models such as reseller-referral marketing programs that encourage personal selling were critical in the creation of competitive advantage for the firm. In instances such as those of the industrial buyer, Glynn & Woodside state that the opinions of the sales representatives, as well as technical consultants, served as critical information sources as compared to techniques such as direct mail or advertising. Consequently, brand marketing representatives that inform and educate the end consumer end up enhancing the latter’s confidence as well as comprehension of specific brands. Such attributes end up creating value for both the firm’s reputation and the buyer. At the same time, the facilitate product
RESELLER-REFERRAL MARKETING 12 features like the lack of defects or even distribution facets like reliable delivery, support services or even just in time models. Cooperation as a Strategy to Competition Intensity Kim, Kim, Pae, & Yip (2013) analyze the best strategies by companies to face competition intensity. The researchers point out that joint actions such as those in reseller-referral marketing programs allow the players involved to cope better with competitive pressures. To that effect, distributors or resellers will always strive to work in a collaborative environment with varying supplier companies in the achievement of the set objectives. As such, cooperation by channel partners will mainly be justified by the obligation of information such as in emergent markets. In this, competitive intensity among companies ends up favoring downstream cooperation in tenets such as logistics, distribution, and marketing. Companies will, therefore, strive to cooperate with varying partners like the reseller-referral partners to foster success particularly in highly competitive markets and at the same time alleviate the challenge of information market lack which is a major obstacle to innovation at the product level. Firms end up creating sales and segmentation of different markets, improvement of the existing technology, as well as the development of new products hence competitive advantage and growth, are achieved.
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