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.

The parties involved must compromise in order to work well together

Explanation:

Here is the complete 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.

Solution:

Cross-promotion is a form of marketing promotion that involves targeting of the customers of one product or service awith promotion of a related product. A common example is the cross-media marketing of a brand e.g Oprah Winfrey's promotion on her shows on television of her magazines, books, and website.

The main aim of cross promotion is the expansion of the marketing reach of a product. Since the company executives, want to reallocate some of the company’s marketing funds to the production department, it will be harmful in a case whereby the parties that are involved compromise in order to work well together.