For a discrete group $G$, we develop a `$G$-balanced tensor product of two coactions $(A,delta)$ and $(B,epsilon)$, which takes place on a certain subalgebra of the maximal tensor product $Aotimes_{max} B$. Our motivation for this is that we are able to prove that given two actions of $G$, the dual coaction on the crossed product of the maximal-tensor-product action is isomorphic to the $G$-balanced tensor product of the dual coactions. In turn, our motivation for this is to give an analogue, for coaction functors, of a crossed-product functor originated by Baum, Guentner, and Willett, and further developed by Buss, Echterhoff, and Willett, that involves tensoring an action with a fixed action $(C,gamma)$, then forming the image inside the crossed product of the maximal-tensor-product action. We prove that composing our tensor-product coaction functor with the full crossed product of an action reproduces the tensor-crossed-product functor of Baum, Guentner, and Willett. We prove that every such tensor-product coaction functor is exact, thereby recovering the analogous result for the tensor-crossed-product functors of Baum, Guentner, and Willett. When $(C,gamma)$ is the action by translation on $ell^infty(G)$, we prove that the associated tensor-product coaction functor is minimal, generalizing the analogous result of Buss, Echterhoff, and Willett for tensor-crossed-product functors.
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