Final answer:
Cross-promotion primarily leads to an expanded customer base by leveraging partner brands to reach new customers, reducing marketing costs. Increased brand loyalty and enhanced product quality could be indirect benefits, but expanding the customer base is a more immediate outcome.
Step-by-step explanation:
Cross-promotion has the potential for a major benefit because it Expands Customer Base. When companies engage in cross-promotion, they can leverage the strength of partnering brands to reach new customers who might be interested in their products or services. By marketing to multiple networks, businesses can tap into existing loyal customers of their partner brands, which may lead to an expanded customer base. Additionally, cross-promotion can help to reduce marketing costs by sharing the expenses with partner companies and achieving cost-effectiveness.
Moreover, cross-promotion can foster diversity among event attendees and create a buzz around the collaboration. It often leads to more innovative marketing campaigns as companies try to complement each other's offerings. It's essential to note that while cross-promotion can lead to increased brand loyalty, the most immediate and direct benefit is usually expanding the customer base. Enhanced product quality is typically not a direct result of cross-promotion activities. However, it could occur indirectly as companies strive to meet the standards of their partners and their shared customer base.