MARKETING DEVELOPMENT FUNDS & CO-OP … Marketing and MDF Programs are Intricately Linked with Brand Success MARKETING DEVELOPMENT FUNDS & CO-OP BEST PRACTICES However, ironically,

MARKETING DEVELOPMENT FUNDS & CO-OP BEST PRACTICES

Co-Op Marketing and MDF Programs are Intricately Linked with Brand Success


However, ironically, 53% of businesses admit their existing localized marketing campaigns are incapable of capitalizing on the current market potential. This gap contains massive opportunities for businesses to outgrow their competition and achieve greater goals.

>88% of business enterprises believe launching integrated local marketing

campaigns achieves better results when it comes to brand recognition and competitive advantage.

In monetary terms, this amount amasses up to about 50 billion dollars annually. At the same time, about 50% of these funds are never used. There are multiple reasons governing this decision making on behalf of businesses and strategic partners.

CO-OP MARKETING AND MDF PROGRAMS are essential to integrated local marketing campaigns. These programs focus on strategic alliances with partners that can help penetrate the local markets in a better manner.

EVERY YEAR, OVER 4,500 CO-OP MARKETING AND MDF PROGRAMS ARE CREATED ACROSS 50 DISTINCT PRODUCT CLASSIFICATIONS.

Businesses all over the world are beginning to realize the importance of local marketing efforts and targeted market penetration.

Differentiating Between Co-Op Marketing

and MDF Programs

Marketing Development Funds & Co-Op Best Practices


MDF PROGRAMS:

MDF are Market Development Funds. They

are issued before the partner makes any sales. The primary purpose of MDF is to penetrate new markets

and hence create awareness.

CO-OP MARKETING:

The Co-Op marketing funds are accrued over a certain time period – usually one

year. Often, sales are major criteria for disbursement of

Co-Op Marketing quota.

vsMDF

Marketing Programs

CO-OPMarketing Programs


How to Select A Particular Program


The Selection CriteriaMost companies possess both programs to benefit from the advantages offered by each. However, the budget assigned to both programs is always a cause of dispute. The importance of any one program cannot be undermined in the sight of another. It is important for businesses to strike a balance between the two programs in the light of

business objectives.

Co-OpMarketing

DFMMDgramssssProg

MDFProgramsHow Much Will The

Company Benefit?

How Much Budget is Available?

How Will It Be Apportioned and Utilized?

How Will The Partner Be Accounted For?

Here is how the division is usually made:

Performance BasedThe higher the sales made by

partners, the higher the budget reserved for local marketing.

A Typical Example of Co-Op Marketing

Need BasedThe allocation is based on business needs. Higher funds allocated for

marketing in “new” market segments. A Typical Example of MDF Programs

Other FactorsBusinesses may look out for the size,

scope and experience level of partners before allocating marketing finances.

This takes into consideration the company’s capacities as well as the

partners’ credibility.


Why is Partner Engagement

Low?



The ReasonsDespite it being a promising marketing tool to engage potential customers directly, about 50% of these resources are effectively

wasted each year. What are the reasons behind low partner engagement with strategic business goals?

As Dale Carnegie puts it;“You Can Make More Friends In Two Months By Becoming Interested In Other People

Than You Can In Two Years By Trying To Get Other People Interested In You!”

Most businesses are not reaching out to their partners in order to develop local marketing campaigns. In fact, through Co-Op marketing programs, they expect partners to contact them for reimbursements. However lucrative it may be, it is not helping partners “get interested in you”!

Here are some reasons that worsen the situation further!

The procedure to acquire Co-op Marketing funds or MDF funds is long, tiring and winded. The reimbursement plan is no simpler. Consequently, partners do not try working around these lengthy processes for the benefit of other businesses.

Partners do not have any reason to pursue local marketing campaigns in collaboration with different businesses. At times, they need to invest in their finances before getting reimbursed. Even in this case, chances of receiving a full repayment is governed by complicated business policies.

Most partners are given a portal, an instruction manual and practi-cally no guidance about how to make use of the tools. So they don’t bother making an effort to utilize it when the business itself is not perceived as a “serious” party in the deal.

TWISTED PROTOCOLS

LACK OF INCENTIVE

LACK OF KNOWLEDGEAND SKILLS


CompensationBenefits


Compensation BenefitsThese days, businesses offer strategic compensation benefits to their partners in order to encourage local marketing spending. There are a number of ways to provide incentives to partners and encourage them to indulge in collaborative marketing campaigns. These include:

The idea is to encourage partners to undertake local marketing initiatives in collaboration with participating businesses. Monetary benefits undoubtedly help in achieving goals. The other way to go about this issue is to eliminate the difficulties faced by partners in the process.

0000 0123 4567 8900

CREDITBusinesses offer certain leverage in the amount and time period of credit extended to partners. This helps them gain better control of their cash flows and hence maintain higher

profitability scores.

0000 0123 4567 8900

PERCENTAGEA discount is offered on the purchase of goods. The idea is to encourage each saved dollar to be extended towards local marketing campaigns.

CREDIT AND PERCENTAGEA combination of both credit and percentage benefits is offered. So the partners can control their finances effectively. The partners save finances in both ways and are in a better state to undergo \a collaborative local marketing

campaign.

A PREDEFINED DOLLAR AMOUNTA certain amount is specified for the local marketing activity at hand. This encourages partners to share the burden of their marketing campaign and make use of this budget for their own benefit as well as for business benefit.

Planning Activities



Planning ActivitiesTo execute successful Co-Op marketing and MDF programs, businesses all over the world are working to bridge the gaps within the equation. Here is a framework to improve the performance of such local marketing initiatives.

Stage 1: Set Clear ObjectivesBusinesses and partners need to establish a mutual understanding about the purpose of the Co-Op and MDF funds. There should be no ambiguity regarding business policies. This ensures the funds are being spent well. This also prevents misunderstandings later on.

Stage 2: Develop A User Friendly Interface

Instead of supplying partners with resource materials and having them guess the way to use them, businesses should be making a conscious effort to educate their partners. At the same time, the user interface should be kept absolutely simple to encourage partners to use the marketing platform. They are least likely to get motivated by an apparent loss of interest on behalf of the businesses!


Stage 3: Track Every Dollar

Encouraging the partners to make use of these strategic resources is not enough. Businesses should be able to track every dollar spent according to the Co-Op or MDF plan. Inability to do so inhibits businesses from gauging the success of different marketing campaigns. If the businesses will not be able to identify the proven successful methods of penetrating targeted market segments, it will eventually lead the business into making wrong local marketing decisions.

Stage 4: Evaluate Rewards and Incentives

Even if the desired results have been attained, it does not necessarily say mean the business strategies and alliances have been equally successful. The need to hear what the partners are saying cannot be undermined. This plays a pivotal role in further improving the Co-Op and MDF programs to attain greater partner engagement and achieve competitive advantage in the long run.

It is important to note that marketing is a coordinated effort between several business entities that join hands to deliver the final product to the right consumers. At every stage, a business can benefit greatly from strategic partners.

Local marketing is not only the most effective way to reach out to prospective customers it also deepens the business relationships for greater overall benefits for both parties. Co-Op and MDF programs are the best way to achieve a favorable end.


Conclusion

!


Co-Op Marketing Programs and MDF Programs are:

Extremely important in achieving strategic business goals.

Two of the most under utilized marketing tools.

Through proper planning and an attractive incentives program, businesses can improve strategic alliances with partners and encourage them to undertake collaborative local marketing campaigns. It all depends on what businesses will do to encourage partner engagement in Co-Op marketing and MDF programs.

For More Information


MarCommand990 South Rogers Circle, Suite 8, Boca Raton, FL 33487

Call: 800-659-4062Email: [email protected]

Website: www.marcommand.com

MarCommand is a full-service marketing platform customized to fit the exact needs of any business and to

give you the end-to-end support you need for all your marketing campaigns. As marketers ourselves, we

know how fast the marketing landscape changes, so MarCommand continues to adapt and grow to meet

these new demands – and yours. Now, you and your network partners can access not only printed assets

online, but customizable e-mail templates and branded social media tools – and much, much more.

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MARKETING DEVELOPMENT FUNDS & CO-OP … Marketing and MDF Programs are Intricately Linked with Brand Success MARKETING DEVELOPMENT FUNDS & CO-OP BEST PRACTICES However, ironically,