Shawn has a masters of public administration, JD, and a BA in political science.
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.
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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.
Cooperative advertising is not without some disadvantages. Manufacturers that provide the advertising dollars will usually attach conditions with it. They often will demand a certain level of quality and a certain style that may be difficult for a small business to accomplish even with the help from the manufacturer. Moreover, different manufacturers will have different requirements, which may make it difficult to maintain a uniform image.
Cooperative advertising is advertising undertaken jointly by a manufacturer of a product and either a wholesaler or retailer. The manufacturer will contribute a certain amount of funds for the advertising campaign subject to certain conditions for the advertising of its product. Examples of cooperative advertising include television ads, radio ads, print ads, direct mail campaigns, trade show materials, and promotional gifts, such as pens and coffee mugs.
Advantages of cooperative advertising include reduced advertising expense and enhancing your brand identification through association with a more recognized product or organization. Disadvantages include the complexity of dealing with one or more partners and the requirements imposed by your partners in consideration of partially funding the advertising.
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Cooperative Advertising: Definition & Examples
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