Final answer:
The effectiveness of cooperative advertising can be enhanced by upfront agreements in a franchise contract which aligns the advertising objectives of the distributor and manufacturer, allowing for better sharing of market trend information.
Step-by-step explanation:
When cooperative advertising effectiveness is enhanced by sharing market trends between distributor and manufacturer, having all details of co-op advertising agreed upon up front in the franchise contract affects this objective.
In the context of monopolistic competition, advertising can either make the firm's perceived demand curve more inelastic or it can cause an increase in demand for the firm's product. If every detail is planned in advance, this can ensure that both parties involved in the advertising strategy are aligned with their objectives, which can facilitate the flow of on-the-spot trends from the distributor to the manufacturer, thus improving the responsiveness and efficiency of the advertising campaign.