Question

What is Cooperative Advertising?
(A) Establishing a relationship between a product and its potential consumers
(B) Generating and transmitting short and precise messages regarding a cause or a problem
C) A system that allows two parties to share advertising costs
(D) Advertising that compares one brand directly or indirectly with one or more competing brands
Which of the options given above is correct:

• (A) and (D) only
• (B) and (C) only
• (C) only
• (C) and (D) only

Answer 1

The Correct Option is C

(C) A system that allows two parties to share advertising costs

What is Cooperative Advertising?

Cooperative advertising (or "co-op advertising") is a cost-sharing arrangement between two parties (typically a manufacturer and a retailer) to jointly fund and run promotional campaigns.

Key Features:

• Shared Costs: The manufacturer (e.g., Nike) reimburses part of the retailer’s (e.g., Foot Locker) ad expenses.

Mutual Benefit:

• Manufacturer gains wider brand exposure.
• Retailer reduces advertising costs.

Common in Retail: Used for local ads (newspapers, TV, digital) featuring both brands.