Question

Assume that Ralph Lauren Home Collection sends a ready-made advertisement to a regional magazine published in Alabama, and the magazine publisher inserts the name, address, and phone number of a local department store chain that carries the bed linens, glassware, and dinnerware. Ralph Lauren pays 75 percent of the cost of running the ad. The department store pays the other 25 percent. This is an example of____________

Answer 1

Cooperative advertising.

Step-by-step explanation:

Cooperative Advertising occurs when the retailer and other channel members (usually manufacturers) share the advertising budget. Usually the manufacturer subsidizes some of the retailer’s advertising that features the manufacturer’s brands.

Horizontal Cooperative Advertising occurs when two or more retailers band together to share the cost of advertising usually in the form of a joint promotion of an event or sale that would benefit both parties.