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Cooperative Advertising

Advertising and Promotion

Cooperative advertising is a cost-efficient and effective way for both the manufacturer and retailer or distributor to reach their target markets. Although co-op advertising policies differ from manufacturer to manufacturer, most will pay a portion of the advertising costs and supply the retailer with material to include in the ad, whether it is print, radio or television.

Using co-op advertising cuts down not only on the media cost, but the production and creative expenses as well. A smart advertiser will factor co-op advertising into his budget. The major drawback to co-op advertising is that some manufacturers have more restrictive programs than others.


The retailer, of course, would like to tailor his message to his own individual needs and run an ad for his service featuring the manufacturer's product, while the manufacturer would prefer to run an ad featuring just the product.

The most striking benefit of any affiliated advertising is to increase foot traffic. Though the gross profit may not be substantial for the item being offered, add-on items with high markup can increase your overall profitability.

The best advice is to test the waters. Retail outlets have subtle marketing differences depending upon whether they are in urban, mall or strip center settings. Of course, the nature of the purchaser will differ and buyers in various locales respond accordingly.

Another form of cooperative advertising is sponsored by strip centers, which will coordinate an advertisement from each merchant in the shopping center. These promotional presentations are seen in your local newspaper for back-to-school specials, St. Valentine's Day, Fourth of July, or Mother's and Father's day.

The backing of a manufacturer's cooperative advertising can range from immense financial outlays to promotional gimmicks. The norm lies somewhere in between.

Be careful to coordinate the cooperative advertising within your overall marketing scheme. If you have chosen a subtle approach to advertising, don't switch in midstream just to take advantage of some free advertising dollars.

 

Steady and constant communications with your manufacturer and distributor will ensure a meeting of the minds.

From Entrepreneur Magazine's Small Business Encyclopedia.

 

From www.themarketingsite.com

Winnifred Knight: winn@themarketingsite.com

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