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Cooperative Advertising: Definition & Examples

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  • 0:02 Definition & Methods
  • 0:38 Advantages & Disadvantages
  • 1:44 Lesson Summary
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Lesson Transcript
Instructor: Shawn Grimsley
Business isn't always about competition. Sometimes it's about teamwork. In this lesson, you'll learn about cooperative advertising, including what it is, some related concepts, and some examples illustrating it. A short quiz follows the lesson.

Definition and Methods

Cooperative advertising is advertising where a retailer or a wholesaler share the costs of an advertising campaign with the manufacturer of the product being advertised. Manufacturers often will set up an annual fund to use for cooperative advertising when the opportunity arises.

Cooperative advertising can involve a broad range of advertising. Some examples include television and radio ads, flyers, catalogs, trade magazine ads, direct mail campaigns, CD-ROMs, trade show booth materials, and promotional gifts.

Advantages and Disadvantages

Cooperative advertising provides several advantages to both the manufacturer and the retailer or wholesaler. Both parties to cooperative advertising can save a significant amount of advertising dollars, which can be allocated for other business purposes. Additionally, little-known brands, wholesalers or retailers can increase their brand recognition and loyalty by becoming associated with a well-known brand, wholesaler or retailer through cooperative advertising. Additionally, if one party to the cooperation is not experienced with advertising, the other party can help refine the message and teach the other how to be a more effective advertiser. This is especially true for small businesses that often have limited resources.

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