Merchandising That Earns Its Keep... A Handy Co-op Calculator

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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