Promotions Reimbursement

Posted in Marketing and Strategy Terms, Total Reads: 356

Definition: Promotions Reimbursement

Manufacturers who repay the retailers for all the cost of advertising. This s called reimbursement policy. Retailers advertise for the manufacturers. This type of advertising is called the cooperative advertising. Manufacturers pay a portion if the advertising budget to the retailers and supply them with photos, graphics etc. to be used for the ads.

It is on the discretion of the manufacturer if he wants to spend large amount of money or small amount for some promotional gimmicks.

Promotions reimbursement is useful since it guarantees advertisement at an optimal price.

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