COOPERATIVE

MARKETING
Prepared By: Ms. Romalyn R. Purificacion
 WHAT ARE WE GOING TO TALK ABOUT?

What is Marketing
Types of Market
What are the customers needs, wants and
demand
Product, Services and Branding
Building Customer Relationships
Current Marketing Landscape Challenges
WHAT IS MARKETING?
Marketing is a process by which
companies create value for customers
and build strong customer relationships
to capture value from customers in
return
WHAT ARE THE TYPES OF MARKET?

CONSUMER MARKET
Which consists of individuals and households that buy goods
and services for personal consumption EX: Perishable goods,
white goods, brown goods)

BUSINESS MARKETS
Buy goods and services for further processing or for use in
their production process
WHAT ARE THE TYPES OF MARKET?
RESELLER MARKET
Buy goods and services to sell at a profit. (EX: Raw Metals: Ores,
Woods, Cements etc) , Retail industries: Supermarkets, Specialty
stores.

GOVERNMENT MARKET
Are made up of government agencies that buy goods and services to
produce public services or transfer the goods and services to others
who need them. Ex: Postal Services
WHAT ARE THE TYPES OF MARKET?

INTERNATIONAL MARKET
Which consists of these buyers in other countries, including
consumers, producers , resellers and governments
CUSTOMER NEEDS, WANTS, DEMAND

NEEDS
State of Deprivation, Physical, Social, Individual

WANTS
Form that needs take as they are shaped by culture and
individual personality

DEMAND
Wants backed by buying power
WHAT IS PRODUCT?

Anything that can be offered to a market for

attention, acquisition, use or consumption. It
can be tangible goods.
WHAT IS SERVICES?

A form of product that consist of activities,

benefits or satisfaction offered for sale that
are essentially intangible goods and do not
result in the ownership of anything.
WHAT IS BRANDING?

Is a name, term sign, symbol or design,

or a combination of these, that
identifies the maker or seller of a
product or service.
BUILDING CUSTOMER RELATIONSHIPS
CURRENT MARKETING LANDSCAPE
DIGITAL AGE
-People are connected continuously to people and
information worldwide

-Marketers have great new tools to communicate with

customers

-Internet + Mobile communication devices creates

environment for online marketing
Cooperative Marketing

Cooperation

is a concept that was probably developed in pre-

historic times. Whenever people associate for
mutual benefit, we have cooperation. Many
examples of cooperation have been used throughout
history. Quilting bees, corn shuckings, barn raisings
all are examples of cooperation.
Cooperative Marketing
Cooperative

is a group of people who have joined together to

control their own destiny. A cooperative is one of
the best ways for a large number of people to own
a business. Many people do not have enough money
to start businesses by themselves. But if they pool
their money and ideas, they can organize
themselves cooperatively into many businesses. A
cooperative gives people a way to keep the money
they make in their own community rather than to
another city, state or country.
A marketing cooperative is a business organization owned by a group
of people to collectively sell their products. It allows producers to
accomplish, collectively, functions they couldn’t achieve on their
own.
 Housing A housing co-op is a method where people provide housing
for themselves through group ownership of a multi-family unit or
even a subdivision of single family housing.
 Auto Repairs This is a new area where cooperation is springing up. In
some cases where the membership is large enough, the members own
the shop and hire a staff of competent repairmen.
 Farm Equipment & Supplies Farmers are a likely group of
cooperators. They join together to make purchases of farm
production supplies for lower prices and to ensure quality
merchandise.
Vegetable Marketing The farm produce marketing
cooperative provides an essential service to the small
producer who lacks the volume needed to ship his produce
directly to market outlets

Buying Clubs The buying club is a simple solution to the

problems of high food costs. A small group of people pool
their grocery orders so that they can buy at wholesale
outlets.

Supermarkets Cooperative food stores have been

successfully organized in isolated communities beginning
with a buying club and expanding gradually into a store front
operation.
Credit Unions A credit union may be organized separately or
in conjunction with almost any other kind of cooperative.

Quilting is a skill long practiced in the rural South. It is a

tedious, time consuming art

Fishing Fishermen are able to market their catch for higher

prices by working together.
Importance of Cooperative Marketing
1. Proper Reward of Production
Bargaining power of society is greater than the single farmer.
So a farmer will get the fair reward of his product.

2. Storage Facility
A co-operative marketing society will also provide the facility
of storage to its members. The resources of the society will
be adequate to provide this facility.
3. No Middleman
The major benefit of this co-operative marketing
society is that a farmer will save himself from the
middleman. So the income of the framer will
increase and his economic condition will improve.

4. Elimination of Speculation
A co-operative marketing agricultural product and
eliminates the speculation and wastage of product.
Crucial Elements
A cooperative must furnish a definite service needed
by the producer
A cooperative must have sufficient volume of
business to enable it to operate efficiently and
economically
A cooperative must have a loyal membership
A cooperative must have good management
 Co- Marketing or Co- Branding
According to Philip Kotler Co- Branding is “two or more well-known
brands are combined in an offer” and each brand’s sponsor
expects that the other brand name will strengthen the brand
preference or purchase intention and hopes to reach a new
audience.

While the Co-marketing occurs when two like-minded brands align

their marketing efforts to promote each other’s product or
service. While a hybrid product is not created, a co-marketing
undertaking allows brands to leverage their relationships with
other brands.
Differences of Co- Marketing or Co-
Branding
Co- Marketing Co- Branding
 Mailing List Exposure  Less Expensive
 Increased Access to  New Market Exposure
Resources  DoubledHype
 Heightened Credibility Surrounding the
 Heightened Credibility Release
Who employs Cooperative Marketing?
 Many kinds of companies employ cooperative marketing
agreements. 
 For small businesses, cooperative marketing can be a very powerful
way to get exposure and business. Food vendors, t-shirt sellers,
farmers, artists, and musicians all sell and advertise their products
and services through a variety of cooperative marketing
agreements. 
 The Internet is abundant with cooperative marketing opportunities.
For example, affiliate marketing websites enable both large and
small businesses to choose products they wish to endorse on their
own websites, through their contact lists and on social media
networks; by doing so, the affiliate earns a percentage of every
sale.
For what kinds of Customers is Cooperative
Marketing effective?
Cooperative marketing works because it takes far less energy than
foot-traffic shopping. For example:
 A health-conscious person with moral objectives to mass
farming will love to go to a farmer’s market to buy fresh, local
organic produce and could be enticed to try grain fed beef from
a new farmer.
 A fan of the movie Avatar is motivated to buy Coke Zero when
advertisements, a website featuring 3-D graphics, and television
commercials featured Avatar characters and Coke Zero
together. Consumers were encouraged further when Coke Zero
was offered in an Avatar-branded pack.
 A thirty-something mom and her two kids are motivated to stop
for a McDonald’s Happy Meal to score Smurf collectible
figurines, after The Smurfs movie introduces the quirky blue
characters to a new generation of kids and simultaneously
takes Mom back to her own Saturday morning cartoons.
 A woman who uses Olay skin care products is drawn to
CoverGirl when the companies partner up, swirling Olay
moisturizer into CoverGirl’s foundations and cream blushes.
Having Ellen DeGeneres as the CoverGirl Ageless Collection
celebrity spokesmodel doesn’t hurt Olay’s reputation either.
 What is Marketing Strategy?

Is a business’ overall game plan for reaching people

and turning them into customers of the product or
service that the business provides.
 Product Policies

Is defined as the broad guidelines related to the

production and development of a product. These policies
are generally decided by the top management of a
company i.e. board of directors. It is like a long term
planning with respect to the product-mix of the company
in order to deliver maximum customer satisfaction.
Product policy of a company has certain
objectives:
• Survival
• Growth
• Flexibility
• Scalability
Pricing strategy covers decisions about setting initial
prices and adapting prices in response to
opportunities and competitive challenges.
6 different pricing strategies, they are:
 
Pricing at a Premium
Pricing for Market Penetration
Economy Pricing
Price Skimming
Psychology Pricing
Bundle Pricing
 Promotion Strategies

Is when a business decides which forms of

communication it wants to use in their marketing
plan.
5 Elements of Promotion Strategies

Personal Selling
Advertising
Sales Promotion
Direct Marketing
Publicity
 BRANDING STRATEGIES

Brand Strategy is a long-term plan for the development

of a successful brand in order to achieve specific goals.

It is the process of quantifying the value and

authenticity of an organization, product or service.

Branding is what drives marketing because

branding is strategic and marketing is tactical.
 Every brand makes a promise it’s not just
making a promise that separates one brand from
another, but having a defining purpose.

Mission:
Potato Corner, the first and the original Flavored French
Fries prides itself in being a Global Brand that serves the
best flavored fries to its customers, and by providing
limitless opportunities for its Franchisees.
The key to consistency is to avoid talking
about things that don’t relate to or
enhance your brand.

I O N
OT
EM
Find a way to connect to your customers on a deeper,
more emotional level.
 In this fast-changing world, marketers must
remain flexible to stay relevant. On the plus side, this frees you
to be creative with your campaigns.
 It's equally important for your employees be well
versed in the how they should be communicating with
customers and representing the brand. 

It is a critical part of every brand strategy,

especially if you're looking to support
your sales organization. 

COMPETITIVE
Take the competition as a challenge to improve your own strategy
AWARENESS
and create greater value in your overall brand. You are in the same
business and going after the same customers, right? So watch what they do.
 
 DISTRIBUTION STRATEGY

It is the method one uses to get products and services on

to different distribution channels and networks to reach
the end customer or the purchaser; it is how and where
the customer buys the product.
THREE TYPES OF DISTRIBUTION
Marketing Intermediaries

Help the company to promote,

sell and distribute its products
to final buyers
 Distribution
 place refers to the way in which products are moved from the
manufacturer to the final consumer
 Manufacturers often make use of intermediaries, such as
retailers and wholesalers, to distribute their products to the
market
 The distribution strategy of a company has an effect on all the
other marketing elements, and vice versa. Pricing is influenced
by the type and number of intermediaries, as well as by the level
of support and motivation needed by intermediaries. Distribution
has a bearing on the type and amount of advertising, in addition
to the sales force needed for new and existing products.
CHANNEL MARKETING: TRADE PROMOTION

 Refers to marketing activities that are executed in

retail between these two partners.
 Isa marketing technique aimed at increasing demand
for products in retail stores based on special pricing,
display fixtures, demonstrations, value –added
bonuses , no obligation gifts or more.
A push strategy uses the manufacturer’s sales
force, trade promotion money, and other
means to induce intermediaries to carry,
promote, and sell the product to end users.
 A pull strategy uses advertising, promotion, and
other forms of communication to persuade
consumers to demand the product from
intermediaries.
TYPES OF TRADE PROMOTION
 Trade Allowances
A trade allowance is when manufactures give retailers an
allowance or a refund on their products. In exchange the
retailer agrees to promote the manufacturer’s products
within their stores. This is sometimes referred to as a
slotting allowance if the brand is granted special in-store
placement (e.g. a high traffic shelf position.)
 Cooperative advertising
Cooperative advertising simply refers to an agreement
between manufacturers and resellers to share the
advertising cost for the manufacturer’s brands. 
 Dealer Listings
Dealer listings refer to when manufacturers include details of
retailers that carry their products in their advertisements – such as
“available at Wal-Mart.”
 Gifts and Premium money
Gifts and premium money refer to gifts such as free products or
monetary rewards which are given to resellers by manufacturers if
they resellers are successful in purchasing and or reselling a
particular volume of a product. It is similar to a bonus or a
commission being paid to a salesperson.
 Point-of-purchase (POP) display material
Brands will often provide point-of-purchase display material –
usually known as POP – such as posters, signage, videos, portable
shelving, and so on.
Objectives of Trade Promotion:
 Gain/maintain distribution
 Influence resellers to promote product
 Influence resellers to offer price discount
 Increase reseller inventory
 Defend against competitors
 Avoid reduction of normal prices
This PowerPoint is the coverage for the Preliminary
examination