Cooperative Advertising and MarketingChat

Our Situation

• GGI is not well known in the housewares industry• Another branding option?

What is cooperative advertising?

• General terms:• Definition: Co-op Advertising is where the ad costs

are divided between two or more companies. • Also Known As: Co-op Ads, Cooperative Advertising,

Cooperative Program • General Use: Incentive offered by manufacturers to

distributors or retailers to encourage promotion and advertising of particular products.

• Source: http://retailindustry.about.com/library/terms/c/bld_co-op_ad.htm

Alternatives Considered

Is this a viable alternative for GGI?Why?

• Consider brand awareness?• Advertising co-pays.• Partnerships with reputable companies.• Other?

Examples

http://www.acbl.org/marketing/coopAdvertising.html

http://www.mcul.org/Cooperative_Advertising_589.html

http://www.cultureandtourism.org/cct/cwp/view.asp?a=2128&Q=302600

http://www.scprt.com/files/Rawle%20Murdy/2008%20Co-ops/2008_SCPRT_Co-ops.pdf

Next Assignment• Task 1 Task Type: Discussion Board Deliverable Length: 750-1000 words Points Possible: 70 Due:

11:59:59 PM Description: The president of GGI asks you about cooperative marketing. Used effectively, it can help companies to increase sales and boost brand awareness and at the same time reduce marketing cost. Is cooperative marketing appropriate for GGI? Help the company president understand how it works, its benefits and its applicability to GGI by reading the following articles:

• Visa and Marriott Offer The "Visa Escape!" Summer Travel Promotion (http://corporate.visa.com/md/nr/press157.jsp)Co-Op Advertising (http://www.express-news.com/2006/special/coop.php) Cooperative Advertising Program for Leatherman Tools (http://www.leathermankorea.com/default-68.asp.htm)Leatherman Tools: Beyond the U.S.P. (http://www.leatherman.com/news/press-releases/archives/article.asp?articleID=73)Your comments to the president should address the following:

• What is the value such relationships? • Besides advertising, what are other creative ways companies can engage in cooperative marketing? • How should a company decide with whom to partner in joint marketing efforts? • What are some of the effective cooperative marketing ways that GGI could use in this project? • Post your answers (750-1000 words) for the above four questions on the Discussion Board, and then

respond to at least two other postings. Each comment must be at least 100 words in length. Use the 2X2 matrix to comment (i.e., two things you liked about the posting, and two things the student could have included to improve the posting including errors or excluding erroneous information).In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.

Grading Guidance

• Discuss and demonstrate an understanding of the benefits and consequences of co-op marketing.

• In GGI company's case, GGI could partner with who?• What’s the value of the relationship?