SITXMPR005 – Participate in cooperative online marketing activities
In this unit you will learn to;
- Evaluate online cooperative marketing initiatives
- Provide online content in appropriate format and style
- Use remote authoring to update content
Introduction
Cooperative marketing was used for many years, in the main, by primary producers. They were (or are) a group of farmers and ranchers who banded together to promote their product and to look out for the interests of their industry. They negotiated prices and distribution of their collective products and saw to it that their members were treated, and paid, fairly.
With the onset of the world wide web, cooperative marketing opportunities have extended beyond agriculture and primary production into other industries and markets.
Today cooperatives are established to serve a specific need and usually perform any one or a combination of three kinds of service functions, but with varying emphasis. They are generally classified by their major activity.
- Marketing Cooperatives market the products or services that the members of the cooperative produce.
- Purchasing Cooperatives, often called farm supply or supply cooperatives, provide members with many production supplies for their operation. Many local cooperatives have formed regional cooperatives to obtain or manufacture supplies. Purchasing Co-ops cut out the middle man by buying directly from the wholesaler and the savings are then passed on to the members.
- Service Cooperatives provide services related to the production and marketing of products and services, or common needs in other areas.
An organisation’s marketing success can be significantly greater, more enjoyable and less risky if they join with other practitioners in cooperative marketing activities. Cooperative marketing is a great way to overcome marketing reluctance, and combining some marketing tasks with others saves time and money. It also generates a powerful synergy, as the creative process is significantly enhanced by team effort versus a solo act.
The advantages of cooperative marketing can include (but are not limited to):
- Purchasing Power – A cooperative offers its members purchasing power. By pooling resources at purchasing time, the cooperative can receive volume discounts. Suppliers are in a better position to offer discounts if they can counter the lower profit margin with higher sales. The cooperative can negotiate prices that are competitive with large corporations’ purchasing prices.
- Marketing Power – A cooperative can purchase advertising and pay for other marketing at advantageous rates. As part of the cooperative, you share a marketing budget that is attractive to advertising sellers. This can get you reduced rates and exposure through larger advertising outlets than you might be able to afford on your own.
The disadvantages to a cooperative may include;
- Sharing Pricing with Competition – The disadvantage of purchasing through a co-operative is that you and your competitors share the same pricing and products. You don’t have an edge over your competition if you join the same cooperative together. The cooperative not only levels the playing field between you and large corporations, it levels the field between you and other small businesses.
- Generic Marketing – The disadvantage of marketing through a cooperative is you may lose control of your unique branding for your business. If the marketing purchases include advertising for all members of the cooperative, you may get lumped in with competitors or businesses you don’t want to be associated with in your consumer’s perceptions. Your unique message can get lost if the cooperative advertising message represents the whole group.
Example of cooperative marketing;
… continued in learner guide ….