Time：10am-12am, May. 31st, 2012

Location：CEEP-BIT

Title：Strategic Analysis of Cooperative Advertising in Manufacturer-Retailer Supply Chains

About Report:

The main reason for a manufacturer to use co-op advertising is to motivate immediate sales at the retail level. The manufacturer’s national advertising is intended to influence potential consumers to consider its brand and to help develop brand knowledge and preference, and is also likely to yield benefits beyond sales from an individual retailer. Retailer’s local advertising gets people into the store and, with the passage of time, brings potential consumers to the stage of desire and action and gives an immediate reason to buy. Co-op advertising provides consumers the information needs when they move through the final stages of purchase and a congruence of information and information needs that would be impossible if the manufacturer uses only national advertising. In addition to the same objective of immediate sales at the retail level as the manufacturer, the retailer utilizes co-op advertising to reduce substantially its total promotional expense by sharing the cost of advertising with the manufacturer. Most studies to date on vertical co-op advertising have focused on a relationship where the manufacturer is a leader and the retailer is a follower, which implies that the manufacturer dominates the retailer. The design and management is the main subject. Little attention has been given to the recent market structure in which retailers retain equal or more power than manufacturers do in retailing. This study is intended to discuss the relationship between co-op advertising and the efficiency of manufacturer-retailer transactions.