0816_TOEFL-Test-and-Score-Manual-1997

146 ● 201 Great Ideas for Your Small Business
Ad agency executives tell me companies like Harry Winston, the highend
jeweler “tag” many of their print ads with local retail store information
to boost sales.
“It’s a mutual collaboration. Each one is building the brand of the
other,” said Erik Dochtermann, chief executive officer of KD&E, a
Manhattan ad agency.
Dochtermann said retailers typically spend 3 to 10 percent of the total
sales of an item on co-op advertising. (In most cases, money doesn’t actually
change hands. Small retailers get a discount on the merchandise when they
participate in a co-op advertising program.) By working with a big manufacturer,
small retailers not only get more bang for their marketing bucks,
but garner exposure when ads appear in major publications or on billboards.
There is a catch: to qualify for inclusion in a co-op advertising program,
retailers have to promise to stock enough of the product to be considered
a major local sales outlet.
“They may need to take 5 to 30 pieces of a (watch or jewelry) collection,”
explained Dochtermann. “Then, the vendor will contribute more co-op
dollars. In other words, if my expensive ads are driving customers into your
store, I expect you to stock enough of my products to meet the demand.”
For example, he said there are about 45 small retailers participating in
the 2010 Harry Winston co-op program. The ads appear in regional editions,
so local retailers benefit from the exposure.
If you sell clothes or video games, there are lots of co-op advertising
programs designed to draw customers into your store. Dochtermann
said the makers of the popular Grand Theft Auto video game buy in-store
signage at the local level.
The more you do to promote the games, the more stock you’ll receive,
and the more money you’ll make, Dochtermann explained.
“You can also sell space in your window and signage on your checkout
counter. There is real estate available throughout your store,” said
Dochtermann.
He said his clients can spend $1 million or more with small retailers
across the country when the company is promoting a new video game.
So, if you want to sell a hot product, you are going to have to pay for
the privilege. “You might have to build a kiosk, create a shop within a shop,
provide extra training for your employees, or help pay for ads saying the
product is now available.”