Features and tRends

(August 2009)

Creating Effective Co-op Programs to Increase Customer Sales
By Lyndsey Forster, Ashley Mayfield and Kate Griffin

Marketing budgets are tighter than ever. Yet looking forward to a successful 2010 means you must plan smart and advertise efficiently. One way to invest wisely while enjoying the benefits of a complete campaign can be found in co-operative advertising.

Co-operative advertising unites the budgets of manufacturers and their clients in selling products, promoting services and enhancing brand awareness.  When it comes to getting the most for your advertising dollar, co-operative advertising can be your most powerful, revenue-generating opportunity. Manufacturers are using this effective tool to receive increased exposure at less cost.

When you employ a strategic co-op program, you can turn limited budgets into thriving campaigns. These programs decrease advertising costs and increase customer traffic by building a solid link to a brand name they already carry, which in turn stimulates sales in “momentum” markets.

Co-ops save money for resellers and manufacturers alike and link popular brands to local outlets. In a market flooded with competing brands… is anyone linking to your brand? How does your co-op program stack up against your competitors?

Targeting resellers with an effective co-op campaign can help you address one or more of the following business challenges:

  • Increase the revenues you generate through your channel
  • Better anticipate and serve the needs of your partners
  • Build more productive and effective relationships
  • Better recognize and reward your most valuable partners
  • Coach channel partners for outstanding performance
  • Achieve more intimate communication with key sales personnel

Co-op campaigns are more effective when partnered with an incentive program. Incentive programs targeting resellers help sponsoring companies overcome principal business challenges while helping companies:

  • Stock or sell more of a current product
  • Increase merchandising
  • Participate in a new incentive offering
  • Promote the seasonal push of a specific product or cross-selling product opportunity
  • Learn about a new product or service
  • Participate in a market research activities
  • Launch new markets
  • Promote greater loyalty
  • Build customer databases
  • Participate in consumer promotions

Organizations use dealer incentives such as spiffs or bonuses, motivational meetings or incentive trips and gift certificates primarily to build closer relationships and a higher level of engagement. These rewards are likely to affect the motivation of your target audience – the dealers and their sales force. Incentive programs that include a training component with rewards for completion increase the skill and knowledge levels of the reseller’s sales or customer service personnel. When your sales force perceives your incentive program as a means to produce productivity improvements, they will more likely support your program with passion.

If you are thinking of implementing a co-op or incentive program, or wish to review your existing campaign, please feel free to contact Steve Kleber at sk@kleberandassociates.com or call 770-518-1000.

 

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