In order to stay on top as a business owner, you must be ahead of the curve and engage in the latest retail medical marketing. When correctly employed, co-op marketing programs and reimbursements produce  interesting and lucrative trends. Whether you are familiar or not with co-op marketing programs, we have the information to help guide you to successfully integrate them into your business! 

First, let’s go over some basic definitions to help you get acquainted with the nomenclature:

What is a Co-op Marketing Program?

A co-op marketing program is a mixture of a brand and  sales channel partner. The brand reimburses a part or the entirety of an advertisement placement which is done by the sales channel partner. May it be through print, radio, television, or digital, the partner advertises the brand’s product through those platforms.

What is a Sales Channel Partner?

Sales channel partners are companies that form a partnership with a brand or manufacturer. They  agree to facilitate the sale of their products or services. Different types of sales channel partners include retailers, distributors, vendors, consultants, and other organizations.

Now that we have established some terminology, let’s dive deeper into the dynamics and benefits of Co-op Marketing Programs:

Co-op marketing programs are cost-effective. By outsourcing with this method,  you reduce advertising costs as well as ad production and creative costs. Manufacturers, distributors, and retailers have their target markets cornered. When correctly executed this marketing approach not only saves you time but also money! When the costs are shared between both brand and channel partners, the capacity of both parties exponentially grows.

By the effect of combined collaboration between brand and partners, Co-op Marketing Programs are an advantageous way to reach both new and old audiences. Due to not having large marketing departments, channel partners, typically, do not have the revenue to afford the upfront capital of advertising expenses.

However, they have access to loyal audiences that  when paired with the marketing department of brands can create a lucrative and mutually beneficial partnership.

Nevertheless, sometimes co-op marketing programs do not reach their desired outcome; this can be attributed to key preventable factors. These factors include:

The channel partner cannot afford to place the advertisements. Generally, the channel partner is a small business that does not have supply to the same capacity of revenue as the brand. Furthermore, before the profit is generated  from consumers, the channel partner must purchase the brand’s products. On top of this, the pressure of adding ad dollars on the channel partner can weaken the partnership.

Brands place too much pressure on the channel partner for ad creative. Few small businesses are equipped with the means to create their advertisements. The brand may supply the corresponding revenue required for advertising expenses, but without the proper creative direction, the initiative can still fail.

The reimbursement process for channel partners is unmanageable. Due to the sometimes archaic auditable practices of the companies brands are a part of, there can be delays in reimbursements when they are delivered to channel partners. This causes stress on all parties;especially, the channel partners who may already be under a financial burden.

By preventing these discrepancies between brands and channel partners, your co-op marketing program has a greater chance of success. Moreover, here are a few of the  best practices to ensure your co-op marketing campaign is a success:

  • Create  customizable  templates for advertisements 
  • Enlist co-op advertising with broader marketing campaigns
  • Pre-approved ads help to  expedite the reimbursement process
  • Establish funding rules early in the partnership
  • Generate an automated system for fund claiming and reimbursement requests

We hope to have provided you with a better understanding of what creates a successful or unsuccessful co-op marketing program. If you have any questions or concerns, please contact us at 201-203-7033 or [email protected] 




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Estro Medical Marketing

Estro Medical Marketing develops medical websites and medical marketing services for doctors. The medical marketing services offered are digital marketing, traditional marketing, traditional advertising, commercials, and out-of-home advertising.

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