A collaborative marketing strategy where manufacturers or suppliers share the cost of advertising with their retailers. This arrangement incentivizes retailers to promote the manufacturer’s products or services locally. For instance, a national electronics brand might provide funds to a local appliance store to advertise the brand’s latest television models in the store’s regional newspaper.
This approach provides several advantages. It allows manufacturers to extend their advertising reach, leveraging the retailer’s local market knowledge and relationships. Retailers benefit from increased traffic and sales generated by the promotion of well-known brands. Historically, such programs have proven effective in boosting brand awareness and driving sales at both the manufacturer and retailer levels.
