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Promotional Strategy Chapter 16: Sales Promotion Part 5: Trade Promotion.

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Presentation on theme: "Promotional Strategy Chapter 16: Sales Promotion Part 5: Trade Promotion."— Presentation transcript:

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2 Promotional Strategy Chapter 16: Sales Promotion Part 5: Trade Promotion

3 Manufacturer “Co-op = 3% of sales at 100%” Retailer Vertical Cooperative Advertising

4 Manufacturer “Co-op = 3% of sales at 100%” Retailer Vertical Cooperative Advertising Retailer sells $500,000 worth of product in the co-op time.

5 Manufacturer “Co-op = 3% of sales at 100%” Retailer Vertical Cooperative Advertising Retailer sells $500,000 worth of product in the co-op time. 3% of $500,000 = $15,000

6 Manufacturer “Co-op = 3% of sales at 100%” Retailer Vertical Cooperative Advertising Manufacturer buys $15,000 in local advertising for retailer.

7 Buy Manufacturer’s Product And the copy tells why the manufacturer’s product is great… And the ad says you can buy Manufacturer’s Product at Local Retailer’s Location. Vertical Cooperative Advertising

8 Buy Manufacturer’s Product And the copy tells why the manufacturer’s product is great… And the ad says you can buy Manufacturer’s Product at Local Retailer’s Location. Vertical Cooperative Advertising

9 Buy Manufacturer’s Product And the copy tells why the manufacturer’s product is great… And the ad says you can buy Manufacturer’s Product at Local Retailer’s Location. Vertical Cooperative Advertising

10 Buy Manufacturer’s Product And the copy tells why the manufacturer’s product is great… And the ad says you can buy Manufacturer’s Product at Local Retailer’s Location. Vertical Cooperative Advertising

11 FordHondaChryslerBuickNissan Buy ad for Motor Mall Horizontal Cooperative Advertising

12 The “Intel Inside” campaign is an example of ingredient-sponsored cooperative advertising

13 End of Program.


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