What is cross-promotion in marketing?

Cross-promotion in marketing refers to a strategy where two or more products, brands, or services collaborate to promote each other. This approach allows businesses to leverage each other's customer bases, enhancing visibility and potentially increasing sales for all parties involved. For example, a travel agency might partner with a hotel chain to create a promotional package that benefits both, as each partner can offer something of value to their existing customers while appealing to new ones.

This method is particularly effective because it can lead to cost-efficient marketing efforts; partnering brands can share costs related to promotional campaigns, find new audiences that are already aligned in interest, and create more compelling offers by combining their resources. This is more beneficial than simply focusing on distinct advertising budgets or narrow platforms like social media.

The other options do not encompass the collaborative element central to cross-promotion. Maximizing an advertising budget, promoting solely through social media, or offering discounts on unrelated products does not inherently involve two or more entities working together for mutual benefit, which is the essence of cross-promotion.