Beverly went to the store to purchase instant hot chocolate mix for her family. A sign near the hot chocolate directed her to a specific aisle where she could purchase marshmallows. This is an example of a(n):.

a. cross-promotion.
b. brand extension.
c. co-brand.
d. overlay.
e. simultaneous promotion.

The correct answer is letter a. cross-promotion.

Explanation:

Simply put, cross-promotion is any activity that uses one product to advertise another. There are several ways to do so, some of them resulting from a sort of partnership between companies that will lead to a win-win situation. For example, a fast food chain can partner up with the producer of a famous animation movie to give away toys of the movie characters. That way, the restaurants and the movie attract more attention. In the case described in the question, we do not know if there is a partnership between companies going on. What seems to be the case is that the store wishes to sell more and, consequently, profit more. The owner or manager knows that people who drink hot chocolate tend to buy marshmallows to put in the beverage, so placing them in proximity serves to promote the marshmallows and increase their sales.

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