What is Cooperative Advertising
Cooperative advertising is mainly an arrangement where two or more firms share the cost of advertising. However, it is not limited to just a cost-sharing arrangement—it is a strategic partnership that combines the resources of manufacturers and retailers to promote products effectively. This collaboration ensures that both parties benefit: manufacturers can extend their reach to local markets, while retailers gain visibility and drive more foot traffic to their stores.
Major types of Cooperative Advertising are:
Cooperative advertising is mainly an arrangement where two or more firms share the cost of advertising. However, it is not limited to just a cost-sharing arrangement—it is a strategic partnership that combines the resources of manufacturers and retailers to promote products effectively. This collaboration ensures that both parties benefit: manufacturers can extend their reach to local markets, while retailers gain visibility and drive more foot traffic to their stores.
Major types of Cooperative Advertising are:
- Horizontal cooperative advertising: This is where members at the same level in the supply chain join together and advertise.
- Vertical cooperative advertising: This is where a member higher in the chain shares the cost of advertising with a member or members below him in the supply chain.
Benefits of Cooperative Advertising
- Cost is shared and thus reduced cost per opportunity to see (OTS).
- Can leverage national/international brands to advantage of the store by association.
- The budget available for advertising increases.
- The quality of the advertising generally improves as brand owners/ manufacturers use large advertising agencies and creative people to create the advertising.
- Advertising for the category and comparison of advertising within the category is taken care of by brand owners/manufacturers providing significant inputs and support for each category within a retail store.
Media used in Cooperative Advertising
Most of cooperative advertising uses newspapers as their medium. The other media generally encouraged by manufacturers are: balloons, leaflets, giveaways, store demonstrations, in-store advertising and mall advertising. Today, many local newspapers offer editions for a particular part of town.
Class Sessions
1- Summary of Benefits of Branding for Retailers and Customers
2- Store Positioning
3- Attributes that influence Store Positioning
4- Objectives, Functions and Types of Retail Advertising
5- Crafting the Retail Advertising Message
6- Key Points discussed so far
7- In-Store Media Vehicles
8- Shopper Marketing Process
9- Sales Promotion and its importance
10- Sales Promotion Categories