Question

You work for an auto parts manufacturer that has traditionally had an immense marketing budget. Company executives, however, recently reallocated some of the company’s marketing funds to production. Consequently, the company needs to cut marketing costs. You decide to pitch an idea to the automobile manufacturer with whom you work most closely—to use cross-promotion to market both companies’ products.
Which of the following is detrimental to using cross-promotion? 

a. One or both companies lose customers. 

b. One or both companies lose competitive edge. 

c. One company garners all the attention and support. 

d. The parties involved must compromise in order to work well together. 

e. One of the companies absorbs most of the costs associated with marketing.

Answer 1

Option D.

• Cross promotion is a strategy used by the parties involved in which they use each other's products to promote their own goods and services.
• This strategy requires both parties involved to compromise and work together in order to promote their products and expand the reach of their products.
• Here the auto parts manufacturer asks the automobile manufacturer to work together with him to use cross promotion in order to market their products.