An arrangement in which a manufacturer pays a certain amount of a retailer's media costs for advertising that manufacturer's products is

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Cooperative advertising is when a manufacturer and a retailer pool their resources to create and share the cost of an advertisement. The manufacturer typically pays a percentage of the retailer's media costs for advertising their products, and the retailer features the manufacturer's products prominently in the ad. This arrangement benefits both parties, as the manufacturer gets exposure and the retailer receives financial assistance for their advertising efforts. A buy-back allowance involves the manufacturer agreeing to take back unsold products from a retailer, a merchandise allowance is a discount given to a retailer for purchasing a certain amount of a manufacturer's products, premium money is a payment made to a retailer for meeting or exceeding sales targets, and push money is a payment made to salespeople to incentivize them to sell a specific product.

An Arrangement in Which a Manufacturer Pays a Certain Amount