Cooperative Advertising

Cooperative Advertising or NOT?

GGI Senior Management has produced some question about cooperative advertising. They are concerned on whether it can benefit GGI and how should they proceed with this type of advertising. This paper will give them an idea of what it is and how it works, the benefits for using it, and how it's applicable to GGI. GGI will get a good idea rather to proceed or venture in another way to get their brand awareness out.

Cooperative Advertising is the sharing of costs between a retailer or wholesaler and a manufacturer. There is a set of money that the manufacturer reimburses the retailer to help the retailer or wholesaler with advertising and other creative ways to get their message out about their products. One downfall for the manufacturer is that "much of this money goes unspent, as relatively few retailers and wholesalers pursue cooperative agreements" (referenceforbusiness.com, 2012). Companies have to realize that they have to put money aside for this expense and if approved the manufacture will reimburse the money used. There are many benefits for using this particular type of advertising, which are:

* Aids business owners with the advertising campaign required to keep their business afloat and successful

* The funds embrace the value of the advertising as well as it increases the distribution of reaching the targeted audience

* "Create important links between products and the small wholesaler or retailer who handles the product for the manufacturer" (referenceforbusiness.com, 2012)

* If a business is unidentified with new products developed, this helps build the customer loyalty and associates it to the unknown name from the product

* Reduces advertising expenses

* Professional guidance on the best choices to choose

The above information is applicable to GGI in many ways because their sales are decreasing which is making the business slack as well as helping them with these current goals, which are Expand product line (housewares), New brand & packaging, Opening additional stores with a new brand attached to it, and Increase of sales and brand awareness because with the cooperative advertising it will be valuable to them. With the introduction of the new branding, this will help them establish customer loyalty even if the product doesn't associate to GGI at the beginning. This method will allow them to be associated to their particular housewares when seen in stores, on TV, or ads. It will also help GGI broaden their targeted audience reaching people all across the world knowing the funds used will be given back to them if the cooperative advertising is approved.

This relationship is valuable because it helps to build brand awareness which