Cross-marketing (commonly referred to as marketing cooperation) is when two companies work together to promote each other. A simple example of cross-marketing would be the partnership of an athletic shoe company and a chain of fitness clubs. These two companies could coordinate their efforts so that both companies benefit. The fitness club could set up a display of the shoe company's products in their lobby so all of the club members are exposed to the products. In return, the athletic shoe company could promote the fitness club by giving out free trial passes that its customers can use at the fitness club. These are easy and inexpensive ways for both companies to work together to market their goods and services and expand their audience and customer base.

The most important thing to keep in mind when considering a cross-marketing partnership is that the two companies should cater to a similar demographic (income, gender, age, etc.). The main point of cross-marketing is to reach out to potential customers that might otherwise remain untapped. A company can reach out to a large number of people, but if they are not of the appropriate demographic to be interested in or in need of that company's product or service, then the effort isn't worthwhile and the desired return will not be there. The above example of an athletic shoe company teaming up with a fitness club has potential to be successful because the two companies deal with similar demographics. Another thing to keep in mind is that although the two companies should deal with similar demographics, the two companies should not be competing with one another to sell the same product or service. Two athletic shoe companies should not team up and cross-market for one another because they would ultimately be aiding a rival company, and in doing so, risking the success of their own company.

In terms of whether cross-marketing is more beneficial for small or large businesses, the answer is a bit unclear. Cross-marketing is a relatively inexpensive form of marketing that can be beneficial to companies of all sizes if used properly. However, it is usually the smaller businesses that use cross-marketing as their main marketing initiative. This is due to the fact that small businesses are mainly concerned with growing their customer base and reaching out to as many members of their target demographic as possible. These are things that can be obtained through cross-marketing. On the other hand, large companies are often primarily concerned with differentiating their products and services from that of their competitors in terms of both quality and price. Because of these different goals, large companies might still use cross-marketing, but most likely as a secondary form of marketing and not as their main marketing initiative.