Merchandising That Earns Its Keep... A Handy Co-op CalculatorSource: Frank Mayer and Associates, Inc.
By Dave Zoerb, Frank Mayer and Associates, Inc.
Robin Richardson, Frank Mayer and Associates, Inc.
Cooperative advertising is the “carrot” brand marketers traditionally offer retailers to complete a sale. These generally take the form of accrued funds used as a means of encouraging retailers to advertise and promote their product. The amount of co-op support is generally determined by (1) a percentage of the cost of goods or services sold to the retailer, or (2) a budgeted flat amount per time period or location.
Whether based on the brand marketers’ parameters, or the retailers’ discretion, these “co-op funds” have been traditionally used to underwrite costs for the following media and marketing activities:
- Couponing/special pricing to support retail discounts
- Retailer advertising – Weekly print flyers, radio and TV spots, signage and billboards
- Special events at retail locations
- Retail employee incentives and product knowledge programs
- Targeted direct mail
- In-store merchandising
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