|
Click here to return to the top
of the page.
| |
|
1 |
|
WHAT IS CO-OP? |
| Co-op is
advertising dollars provided by national manufacturers and distributors
to encourage local dealers to promote their products or services by
sharing the cost. AVAILABILITY OF FUNDS:
Over 824 manufacturers have funds available.
Breakdown of use of funds: |
| 1. |
Newspaper |
70% |
| 2. |
Mail |
14.5% |
| 3. |
Radio |
10% |
| 4. |
Television |
3% |
| 5. |
Magazines |
1% |
| 6. |
Billboards |
1% |
| 7. |
Yellow Pages |
0.5% |
|
 |
Click here to return to the top
of the page.
Click here to return to the top
of the page.
|
HOW DOES CO-OP WORK?
2 |
| FIRST STEP: The Sale
When a salesperson handles an account, co-op should be a part of the
sales plan. Many customers are familiar with co-op and have used
it in other media, and others have never heard of it. Always ask
about co-op possibilities on every account (some may surprise you).
The salesperson should also handle the sales
paperwork properly for co-op. The ad should be designed to adhere
to the co-op specs outlined in your co-op manual.
SECOND STEP: The Co-Op Unit
Your original paperwork will be sent to the
Co-Op Unit. There, it will be examined for any necessary changes,
and sent for prior approval (if needed). The rate for the co-op
ad(s) will be posted to you in their figures. If any changes are
needed in the ad, the salesperson is notified and must handle the
changes with the customer.
THIRD STEP: The Directory
When the directory is printed and
distributed, the Co-Op Unit will send tearsheets and statements of
charges to all co-op customers in their files. The customer then
forwards this information to his supplier for reimbursement.
The customer is responsible for paying the
full ad cost to [Company Name]. This is something you must be sure
to make clear when you discuss co-op with the customer. If the
customer feels misled about this, you could be adjusted for explaining
co-op incorrectly to him.
JOINT-BILLED PLANS
Joint-Billed plans are a little different.
Under these plans, the customer is billed for only the portion of the ad
not being co-opped. The manufacturer is billed directly for the
co-op portion.
The only plans currently set up on a
joint-billed basis are: Acura Automobile, Chrysler Leasing &
Rent-A-Car, Ford Rent-A-Car/Rent-A-Truck, Goodyear Tires, John Deere
Lawn Mowers, Lincoln-Mercury Rent-A-Car, Yamaha Motorcycles (& Riva by
Yamaha), and Coleman Camping Trailers.
|
[Co-op Practice Exercise #1 was
administered to the class at this point in the training.]
Click here
to view the practice exercise.
Click here to return to the top
of the page.
|
3 |
|
HOW CO-OP
ASSISTS THE MANUFACTURER/DISTRIBUTOR
A. Insures consistent recognition of his product/service.
B. Provides local promotion for the brand by defraying a
portion of the cost for local dealers.
C. Local dealer is contacted every year by yellow pages sales
reps.
D. Manufacturer/distributor maintains quality control on ads
placed.
E. Creates a stronger national image for the product/service.
F. Completes a national advertising program in all other media
on a local level.
|
Click here to return to the top
of the page.
|
4 |
|
HOW CO-OP ASSISTS THE
RETAILER/DEALER
A. Ad layouts are available.
B. Prior approval of the ad can be obtained from the
manufacturer/distributor.
C. Proof of performance is provided (via customers asking for
the product featured).
D. Makes advertising more inexpensive -- manufacturer shares in
cost of advertising.
E. Records of co-op programs are maintained by publisher.
F. Co-Op Unit can assist with ad layout, and provides proof of
publication so the customer can apply for his co-op reimbursement.
|
Click here to return to the top
of the page.
|
5 |
|
HOW CO-OP ASSISTS
THE SALES REPRESENTATIVE
A. When a portion of the advertising is paid, it seems more
attractive to the customers.
B. Helps increase sales.
C. Helps to establish rapport with customer.
D. You can win great prizes!
 |
[Co-op Practice Exercise #2 was
administered to the class at this point during the training.]
Click here to view the practice exercise.
Click here to return to the top
of the page.
[The trainees were introduced to the Co-op
Handbook at this point in the training, and each was issued a Handbook
to use on the job. The co-op plan elements were covered directly from
the example in the front of the Handbook, so no plan layout was included in
this training package.]
|
6 |
|
HOW TO
INCORPORATE CO-OP INTO THE SALES PLAN
PREPARATION
-
Check the customer's current and previous year's ads,
both local and foreign, for brand names & logos.
-
Compare the customer's classified headings or YPH on
the DAO with the Co-Op Handbook's index of Product Names Listed by
Classification.
-
Review the Co-Op Plan(s) in the Handbook and be
familiar with the details (% of ad cost covered, % of accruals, ad
specs, etc.)
-
Obtain ad slicks or artwork from Co-Op Handbook (Ad
Layouts & Logos section) or the Co-Op Unit.
-
Review all Co-Op possibilities with the Co-Op
Representative to ensure that you have the latest information on the
programs you plan to present.
-
Order spec art with Co-Op in mind -- set up ads
according to specs outlined in the Handbook.
-
At the customer's premise, check for signs and decals
for Co-Op possibilities.
APPROACH
Approach the customer with confidence, knowing you have
the advertising program that will increase his business and allow him
financial support from his supplier.
FACT FINDING
-
Check for manufacturers' pamphlets and special
displays that could mean co-op.
-
Ask customer, "What brands do you carry?"; look for
Co-Op possibilities (check them in the Handbook - you did bring that
with you, right?).
-
Find out what the customer's volume moving product is.
(This is where he'll have the most accruals.)
-
If you do not uncover a known Co-Op program, ask, "Do
any of your suppliers offer you any co-op reimbursement on their
products?" (May be a new plan!)
|
Click here to return to the top
of the page.
|
7 |
|
PRESENTATION
-
Sell the customer on the benefits of Yellow Pages
before mentioning co-op. If he buys Yellow Pages, you will
not lose the ad if the co-op does not materialize!
-
Enhance your Yellow Pages presentation with the
benefits of Co-Op.
-
Present the co-op plan for the particular brand name
or product(s); read it from the Handbook, if you wish.
-
If the customer is using his co-op funds in other
media, show him how much more he will get by using it in the Yellow
Pages (sell benefits of our medium).
RECOMMENDATION
-
Remember, the customer can afford to buy more
advertising by using co-op.
-
Show how co-op is being used in other directories.
-
Show how competitors are using their co-op dollars in
the most advantageous way.
-
Make your Yellow Pages recommendation with co-op
included (show the total rate, & the rate minus co-op).
CLOSE
-
Explain to the customer that it is important to close
early in the sales campaign so that we will have time to obtain the
necessary prior approval from the manufacturer. If any changes
are necessary to qualify him for his reimbursement, we do not want to
risk any errors by last-minute rushed handling.
-
Remind the customer that he is responsible for full
billing. He will be reimbursed by his manufacturer or
distributor for the co-opped amount (with the exception of
Joint-Billed accounts).
-
Tell the customer that he will receive a sample
invoice and tear sheet to forward to his supplier for reimbursement.
-
Do not promise the dollar amount for co-op because
reimbursement is usually based on a customer's purchases of the
product involved and is between him and his supplier.
|
Click here to return to the top
of the page.
|
8 |
|
OVERCOMING
CO-OP OBJECTIONS
These are the six most common objections to using co-op
funds, and a few suggested responses.
-
"There is too much red tape involved to get
reimbursed."
--Our Co-Op Unit will send you an invoice and tear sheet to submit to
your manufacturer for reimbursement. This is what most suppliers
require, and you should receive it about a month after the directory
is distributed. The Co-Op Unit also handles obtaining prior
approval of the ad, if required, and keeps all documentation of this
on file if any problems occur.
-
"Co-Op prevents me from featuring all the brands I
carry in my ad."
--Many programs allow competitors to be featured in the ad.
Others will prorate reimbursement for the space devoted to their
product, so you would still be eligible for some co-op funds.
--Several programs allow for segmented ads. The plan would then
pay for the section of the ad devoted to their product.
--You are allowed to place two display ads under the same heading, so
you can make one of them for your highest-volume (or most profitable)
co-opping product and the other ad for all your other lines.
--You may place ads under different headings for your various types of
products, using a different co-op plan for each.
-
"We didn't get reimbursed before."
--Did you receive your tear sheet and sample invoice?
(if "yes"): Did you forward them to your supplier?
(if "no"): Our Co-Op Unit can check to see what happened and can
send you the information now, if it's not too late to apply for the
funds.
--When ads are turned in to the Co-Op Unit, they check them to make
sure they meet the qualifications listed in our Co-Op Handbook.
They also send the ads to the manufacturers to obtain prior approval
before they are printed in the directory. I will check with them
to see if there was any problem with your ad last year.
REMEMBER: Co-Op is between the supplier and
the dealer. We cannot guarantee that the customer will
receive co-op funds, even if the ad layout was approved by the
manufacturer.
|
Click here to return to the top
of the page.
|
9 |
- "We use all our co-op funds in other media."
--You will not be billed for this directory advertising until
(whenever EBD is). If you have purchased more of the product by
then, you will have built up some funds in your accrual account to use
for Yellow Pages.
--Yellow Pages are published annually. If you only have to
submit one claim for Yellow Pages, it's less paperwork for you than
submitting a claim for every ad you run in other media at various
times during the year.
--Yellow Pages advertising is a good way to ensure that you use all
the co-op funds that are available to you.
--Your co-op dollars will buy you a lot more in Yellow Pages than in
other media. (Show how.)
(Many customers are aware of co-op, and have used it in other media.
But they don't usually think of co-op in relation to Yellow Pages.)
- "We list under the National Trade Mark Program."
--Co-Op funds are intended for use in local advertising, as well as
the national trademark program. That's why manufacturers set up
programs like this. They know the value of Yellow Pages display
advertising and encourage their dealers to use it.
--Customers follow the path of least resistance. 80% will look
at the display ads first, and will call the first one they are drawn
to.
--Unless you are listed first under the trademark, you are probably
lost.
- "The distributor uses all the co-op funds from the
manufacturer."
--Most co-op programs are designed for the funds to be passed on to
the dealers. Our Co-Op Unit will check with your distributor to
see if the funds can be made available to you. Perhaps no one
has ever requested that the funds be passed on to dealers, or had the
advantages of this explained. We will check on this and get back
to you.
|
[Co-op Practice Exercise #3
was administered at this point in the training.]
Click here
to view the practice exercise.
Click here to return to the top
of the page.
|
10 |
|
HANDLING CO-OP PAPERWORK
Okay, now that you've sold this co-op
stuff, how do you put it on paper? Relax, it's not difficult!
When you receive an account with a co-op
item from last year on it, there will be a form like this attached to
the front of it (actually, one much larger):
You can locate the co-op item by looking for a remark like this in
the Special Information section of the DAO:
|
Click here to return to the top
of the page.
|
11
If you're renewing the ad and the co-op is
remaining the same, you don't have to change this remark at all!
If the brand name of the co-op is changing, line
through the old information and write in the new, like this:
Sometimes the co-op information will read like this:
We use Co-Op Remarks whenever there is some type
of information you need to know when handling the account. This
information could be as simple as several brand names that were too
lengthy to print out beside the item, or as important as some type of
special action you need to take when you update the customer's ad
program. Whatever it may be, when you see the above remark next to
an ad, be sure to check the Co-Op Remarks on the Sales Account Info page
of your DAO.
|
Click here to return to the top
of the page.
|
12
If you are selling a new item as co-op, or
converting an existing ad to co-op (in other words, there was no
co-op information beside the item last year), make sure to write the
information next to the item, like this:
(for new ad sold)
(for conversion of existing ad to co-op)
The "(R)" stands for "Regular" co-op, and is
entered so that the computer will know that this particular item is
co-op when it is asked to run a list of all co-op ads for the directory.
The product name must be entered so that the
Co-Op Unit will know what co-op plan is involved in the ad. This
will also be keyed into the computer so that it will print out on next
year's DAO.
If the item in question is not going to be co-op
for this issue, line through the co-op information so it will be deleted
from the System:
|
Click here to return to the top
of the page.
|
13
ALL accounts involving co-op must be listed on a
separate 5268. This includes accounts where the co-op ad
has cancelled. The reason for this is that the Co-Op Unit must
keep track of every account that has had or will have co-op on it.
If a 5268 is not flagged to be sent through the Co-Op Unit, they will
never see it.
This is especially important
for co-op accounts involving plans that require prior approval. If
approval is never obtained and the customer fails to receive his co-op
reimbursement for this reason, the adjustment on the account will be
charged to you. So, you're really protecting yourself by
ensuring that each and every co-op account is on a separate 5268
remarked "CO-OP" in the lower left-hand corner, as shown below.
|
[Co-op Practice Exercise #4
was administered at this point in the training.]
Click here to
view the practice exercise. Click here to return to the
top
of the page.
|
14
PAPERWORK FOR
JOINT-BILLED ACCOUNTS
You knew there had to be a catch; it couldn't all be as easy as writing
a little remark on a DAO and a 5268, right?
Well, joint-billed paperwork is a little more involved, but a systematic
approach to it makes it easy. Basically, the paperwork on
joint-billed accounts can be broken down into five easy parts:
-
Update the co-op
information in the Special Information section of the DAO, if
necessary.
-
Update the Co-Op Special
Bill Info on the Sales Account Information page of the DAO.
-
Update the Billing page
of the DAO.
-
Complete the 50/50 form
for the account and have the customer sign it.
-
Remark the 5268 "CO-OP",
as for regular co-op accounts.
Now, you see? That's
not so bad. Steps 1 and 5 are the same as for regular co-op
accounts; steps 2-4 are explained below.
2.
UPDATING THE
SPECIAL BILL INFO
Turn to the "Sales Account
Information" page of your DAO. (If there is not one, you will use
a blank manual DAO to enter this information.)
The special billing information is shown so that the discrepancy between
the After-Servicing Revenue and the Billed Revenue can be explained to
whoever checks the System for these things. If the information is
not there, the Billing will be updated to agree with the ASR, and the
customer will be billed incorrectly for the full rate of the ad.
The following page shows the proper wording of these remarks, and gives
the addresses for billing of all the joint-billed plans.
If
special billing information was shown last year (i.e., it is printed on
the DAO), and the plan is the same this year, just line through the
dollar amount and update it with this year's figure. (Remember to
adjust it for the amount being co-opped.)
|
Click here to return to the top
of the page.
|
15
BILLING REMARKS FOR JOINT-BILLED CO-OP ACCOUNTS
Remarks should be entitled "CO-OP SPECIAL BILL INFO",
and should read:
"Bill
(dollar amount to be co-opped) of (ad size) under
(YPH) to (appropriate address as listed below).
|
ACURA AUTOMOBILE
Ketchum Yellow Pages
3250 Wilshire Blvd.
Los Angeles, CA 90010
|
 |
CHRYSLER LEASING & RENT-A-CAR
Ameritech Publishing Inc.
3155 West Big Beaver Rd., Suite 211
Troy, Michigan 48084
|
FORD RENT-A-CAR/RENT-A-TRUCK
Ameritech Publishing Inc.
3155 West Big Beaver Rd., Suite 211
Troy, Michigan 48084
|
GOODYEAR & GOODYEAR TRUCK TIRES
Directories Publishing Company, Inc.
15017 Detroit Avenue, Suite 223
Lakewood, Ohio 44107
|
JOHN DEERE
Ketchum Yellow Pages
405 North Wabash, Plaza Level Three
Chicago, IL 60611
|
LINCOLN-MERCURY
Ameritech Publishing Inc.
3155 West Big Beaver Rd., Suite 211
Troy, MI 48084
|
YAMAHA MOTORCYCLES
Ketchum Yellow Pages
3250 Wilshire Blvd., Suite 2110
Los Angeles, CA 90010
|
COLEMAN CAMPING TRAILERS
Ketchum Yellow Pages
Six PPG Place
Pittsburgh, PA 15222
|
Click here to return to the top
of the page.
|
16
3. UPDATING THE BILLING PAGE
Under the "Next" portion of the
Billing page of the DAO, change the amount under "YP". The new
amount should be the ASR of the account minus the amount you just
explained in the Co-Op Special Billing Info.
After changing the amount,
write in the Special Information column, "See Co-Op Special Bill Info".
|
Click here to return to the top
of the page.
|
17
4. THE 50/50 FORM
The 50/50 form will be attached
to your account when you receive your market. If it's not, or if
the dealer is a newly authorized participant in the plan, call the Co-Op
Unit and we'll send you one. Fill out the necessary information on
the form, and have the customer sign it. Turn it in with the
account.
The 50/50 form is what the
Co-Op Unit uses to send the ad off for prior approval. Acceptance
of the ad by the Selling Company involved will cause the NYPS invoice to
be generated that enables the manufacturer to be billed for the portion
of the ad they are co-opping. So, as you can see, this form is an
important part of the joint-billed process.
The 50/50 form should be signed even if the customer does not wish to
participate in the co-op program. This is so that the manufacturer
can contact him to encourage him to participate. (Another reason
to close these accounts early in the campaign!) |
[Co-op Practice Exercise #5
was administered at this point in the training.]
Click here to
view the practice exercise. Click here to return to the
top
of the page.
|
18
THE CO-OP QUERY
In the event that changes are
needed in an ad that has been submitted for co-op, you will receive a
query from the Co-Op Unit. The Co-Op Query is the best way to
inform you of changes requested by the manufacturer to bring the ad
within their guidelines for co-op reimbursement. It requires that
you re-contact the customer to inform him of the requested change.
If a customer does not wish to
change his ad to qualify for co-op, you should indicate this on the
query and return it to the Co-Op Unit. The co-op information will
be removed from the system, and the co-op sales figures posted back
down.
If the customer does wish to change
the ad, you must do a superseding printing order, signed by the
customer, to alter it. This must be turned in as usual, on a
separate 5268 (don't forget to remark it "CO-OP"!), with the Co-Op Query
attached & the reply written in on it.
FAILURE TO HANDLE CO-OP QUERIES CAN RESULT IN
ADJUSTMENTS!
|
Click here to return to the top
of the page.
|
19
CUSTOMER-INITIATED CO-OP
Suppose your customer tells you
that he carries Brand X, and his Brand X supplier has assured him they
will co-op with him. The Co-Op Unit has no information on a Brand
X co-op plan, so they call the manufacturer to inquire. The
manufacturer informs them that Brand X does not have a co-op plan; yet
the customer has been promised by his supplier that he will receive
co-op funds. What do you do?
This is an instance of
customer-initiated co-op. There is no plan for the product from
the manufacturer, but the customer has a "special deal" with his
supplier. This customer needs to receive a tear sheet and
statement of charges to furnish his supplier with the proof of
publication.
Handle customer-initiated co-op
in the same manner as regular co-op. Enter the product name in the
Special Info section next to the co-op item, followed by the notation,
"C.I." This notifies the Co-Op Unit that the co-op is
customer-initiated, and they will not query you to tell you there
is no plan for this product. The Co-Op Unit will send the customer
a tear sheet and statement of charges after directory publication, the
same as for any other co-op customer. The rate of the
customer-initiated co-op ad will also be posted to your co-op figures.
|
Click here to return to the top
of the page.
|
20
THE CO-OP UNIT'S
PROCESSING OF PAPERWORK
The Co-Op Unit makes a copy of
the entire account and sends the original through the regular channels.
We then work from our photocopy, to avoid delaying the processing of
your original paperwork.
From the copy, we:
-
Check for correct co-op specifications.
-
Send the ad for prior approval, if required.
-
Send back to you on a co-op query, if needed.
-
Tally the figures to credit you with the co-op sale.
After the account is checked
and approved, we report the revenue on a monthly and quarterly basis to
Headquarters. We keep a copy of all co-op account paperwork in
file by directory.
When the directory is
published, we send a tear sheet (proof of publication) and a statement
of charges to the customer so that he may apply for his co-op
reimbursement. A copy of the statement is kept in file with the
account, in the event that any questions arise. We maintain these
files for three years in case there are any investigations needed in the
future.
NOTE: The only way we know to send tear sheets to
a customer is if his account is on file when the directory prints.
If we never see the account, the customer will not be able to apply for
his reimbursement, and the account could be adjusted behind you.
This is why it's extremely important for you to remark your co-op 5268's
in the lower left-hand corner!
|
Click here to return to the top
of the page.
|
21
NEW CO-OP PLAN LEADS
The American Association of
Yellow Pages Publishers (AAYPP) handles the maintenance of all the
latest information on co-op plans, and publishes our Co-op Manual.
Their manual is distributed to all member publishers, including our
competitors.
If a customer is aware of an
existing co-op plan for one of his products, and that plan is not listed
in our co-op manual, call the Co-Op Unit. We will investigate to
see if there is a new co-op plan for the product, and notify the AAYPP
so that it can be included in the next update to the Co-op Manual.
If the manufacturer offers co-op funds, but not for yellow pages, we can
lobby them to include yellow pages, and even work with them to design
the plan so it will best benefit their dealers and promote their
product. Prizes are awarded for any leads on new plans that result
in an actual plan being picked up!
TESTIMONIAL LEADS
In addition to all their other
responsibilities, the Co-Op Unit handles the compilation of testimonial
letters from customers. If you handle an account and find that the
customer is a strong believer in Yellow Pages, or perhaps has had a
noteworthy experience with a competitive directory or consultant,
forward the information to the Co-Op Unit. They will follow up on
it by meeting with the customer and explaining the testimonial letter to
him. If your lead results in a new testimonial letter for us, you
will win a prize!
|
Click here to return to the top
of the page.
|
22
EXCUSES FOR NOT SELLING CO-OP
-
"Co-Op delays my paperwork so that I don't get my
commissions on time."
Wrong-o. The turnaround time on original reports received in the
Co-Op Unit is same-day. The deadline for reports to arrive in
Sales Support Logging is 8:00 a.m. Tuesday, and all original reports
in the Co-Op Unit are downstairs before we leave the office on Monday
evening.
-
"I don't sell co-op because there's always a
problem with the account the next year."
Why? If co-op is explained properly to the customer, there
should not be a problem with the reimbursement. If you do
encounter a problem, the Co-Op Unit is there to investigate, and the
Co-Op Representative will go out with you on the account to explain
co-op to the customer if you so desire.
-
"There's too much extra paperwork involved in
co-op; it's not worth it."
What extra paperwork?!? If you have any problems with the
paperwork on a co-op account, bring it by the Co-Op Unit, or call us.
We'll be glad to help. And what's not worth it if your customer
can use the funds freed up by co-op to buy a bigger ad?!
-
"All co-op is for is to make us look good at
Headquarters. It doesn't really help me, and who wants to go to
all that extra work for some silly prize?"
If used properly, co-op can help you to increase your earnings by
selling larger ads. Read over a few of the testimonials on the
following pages if you doubt this...
-
"The co-op plans are so confusing; I can't ever
understand them to explain them to my customers."
The Co-Op Rep is always available to ride with you on an account to
explain co-op to your customer. Call the Co-Op Unit ahead
of time to allow the Rep time to gather all the necessary materials
for the account; make an appointment with the customer and take the
Rep with you.
what's
your excuse
for not selling co-op?
|
Click here to return to the top
of the page.
|
23
IDEAS
THAT
WORKED.
"While recanvassing, I contacted a Water Exchange
Company which had a HP under Plumbing Contractors and a DTS under Water
Heater Dealers. During my telephone contact with [Customer's
name], I learned that he was a Factory Authorized Dealer for the State
Water Heater Company. I asked if he was familiar with Co-Operative
Advertising, and the advantages of using it in the Yellow Pages.
Mr. [Customer] relayed to me that the State Water Heater Company would
Co-Op with him, but he had never considered using it for Yellow Page
Advertising. A revised his HP so that he would be eligible for
Co-Op reimbursement. In addition, he was able to increase his DTS
to a DQC which afforded him the opportunity to advertise larger."
[Sales Rep's signature and photo were included on the
testimonial.]
|
Click here to return to the top
of the page.
|
24
"No Problem"
The little ones can add up! A New York Life
Insurance agent tucked away in a small bedroom community, [City Name],
just outside [City Name], had been there 3 years as a non-advertiser.
Being the only one in town and outside the area covered by the major
directory, he was not covered by their N.Y.P.S. program.
In discussing his situation and needs, I convinced him
his local identity was as important as those in the larger cities.
We made a call to his home office and explained his
area was not covered by the distributors of the [larger city] directory
and inquired about any help they might give. The home office asked
that we submit our proposal and would give us an answer.
After reviewing our proposal, they shifted money from
funds usually used for local public relations giveaways. They not
only agreed to CO-OP the TM but also all of his listings. The
total added up to what a DTS would have cost.
All it took was just picking up the phone and asking
for it.
[Sales Rep's signature and photo were included on the
testimonial.]
|
Click here to return to the top
of the page.
|
25
Number 1
[Sales Manager's photo]
[Manager's name] has had the top crew in the [City Name]
directory since November, 1980. His formula to have the most
successful CO-OP crew is to "do it the CO-OP way."
"Before my crew makes a contact, they check for CO-OP
possibilities. If during the contact there is a price objection,
they always bring in the idea of CO-OP."
"Bigger ads and better results are even better when
others pay for it."
[Sales Manager's signature]
|
Click here to return to the top
of the page.
|
26
CO-OP DOLLARS
MORE IMPORTANT THAN
EVER BEFORE
I have been fortunate enough to
be No. 1 in CO-OP Sales in [State] for the past few years. I feel
this is due to the fact that I discuss CO-OP possibilities with all my
customers.
Because of the present economic
climate, the customer needs to be much more aggressive in his approach
to advertising. Unfortunately, he probably has fewer dollars
available to spend. Because of this, CO-OP dollars are more
important to the customer than ever before.
[Sales Rep's signature and photo]
|
Click here to return to the top
of the page.
|
27
SEGMENTED ADS
These are ads from actual directories that were
segmented to allow for
co-op funds from more than one manufacturer.
|
Click here to return to the top
of the page.
|
28
MORE EXAMPLES OF SEGMENTED ADS
Note the breaks in the borders between segments to
meet our company specs.
Also note that the customer's name, address and phone
number appear in each segment, so each could stand alone as a separate
ad. Combining the segments into one larger ad gives the customer
better ad placement than if he were to buy separate, smaller ads to
feature each brand.
|
[Co-op Practice Exercise #6
was administered at this point in the training.]
Click here
to view the practice exercise.
Click here to return to the top
of the page.
|
A Glossary of Co-op Terms |
| AAYPP |
The American Association of Yellow Pages Publishers.
This is the association of all the old Bell System yellow pages
publishers, as well as independent publishers (like Reuben H.
Donnelley). The Association publishes the Co-Op Manual used by our
salespeople and helps to promote our medium to manufacturers
establishing co-op plans.
|
| ACCRUAL PERIOD |
The period of time over which a customer's purchases
will count toward his accrual fund. Some plans use the previous
calendar year's purchases for ads placed in the current year; others use
the current year's purchases or their own fiscal year.
|
ACCRUALS
or
ACCRUAL FUND |
A percentage of a customer's purchases of a product.
This amount is the maximum available to the customer for co-op
reimbursement, and is subject to change as he places additional orders
with his supplier.
|
AD SLICK
or
AD MAT |
Camera-ready layout of an ad that is approved for use in
yellow pages. These are provided by the manufacturers and usually
require only insertion of the dealer's name, address & telephone number. |
| |
Ad slick for Honda Power Equipment |
AD SPECS
or
PLAN SPECS |
The criteria outlined in the Co-Op Manual for an ad to
be approved for co-op. These must be adhered to, or the customer's
co-op reimbursement may be jeopardized.
|
AUTHORIZED DEALER or
DISTRIBUTOR |
(see QUALIFIED DEALER or DISTRIBUTOR) |
| CLAIM FORM |
A form supplied to the dealer or distributor by the
manufacturer that must be completed and submitted with the tear sheet &
statement of charges for co-op reimbursement. The Co-Op Unit does
not supply these forms to the customers; they must obtain them
from whomever supplies the product to them.
|
CONVERTED
CO-OP AD |
An ad that appears in the current issue of the printed
directory, but is not receiving co-op funds; it is to be co-op for the
next issue.
|
| CO-OP |
Short for "cooperative advertising," co-op is
advertising dollars provided by national manufacturers and distributors
to encourage local dealers to promote their products or services by
sharing the cost.
|
| CO-OP GUIDE or MANUAL or HANDBOOK |
The book distributed to all our salespeople showing all
the co-op plans that include yellow pages. The Guide is to help
you increase your sales through co-op and to make it easier for you to
set up the ads according to the various co-op plans.
|
| CO-OP INVOICE |
(see STATEMENT OF CHARGES)
|
CO-OP
PRODUCT NAME |
The information listed on a DAO to the right of a co-op
item. It will be printed on the DAO as "CO-OP (product name)", and
should be written in as "CO-OP (R) (product name)".
 |
CO-OP
REMARKS |
Information printed on the "Sales Account Information"
page of the DAO that is important to you when handling the account.
It could show the brand names for which tear sheets were sent last year,
or it could advise you of some problem with the ad that needs correcting
to enable the customer to receive his co-op reimbursement.
|
CO-OP
SERVICE
ACCOUNT |
An account containing an ad for which tear sheets were
sent for the previous directory issue. Should always be listed on
a separate 5268, remarked "CO-OP", when turned in.
|
| CUSTOMER-INITIATED CO-OP |
If a customer requests tear sheets for a product on
which we have no co-op plan information, or a product for which we know
there is no co-op plan with the manufacturer, it is known as
customer-initiated co-op. You may notice on some co-op remarks on
DAO's, the product name will be followed by the notation "C.I."; this
stands for customer-initiated.
|
| DISTRIBUTOR-CONTROLLED PLAN |
A co-op plan where the manufacturer reimburses a
distributor and disbursement of the funds to retailers (dealers) is
determined by the distributor.
|
| 50/50 FORM |
An approval form that must be completed for all
joint-billed co-op accounts, regardless of whether the customer is
participating in the plan for this issue. These are forwarded by
the Co-Op Unit to the Selling Company for follow-up.
|
JOINT-BILLED
CO-OP |
This is where the customer is billed only for a portion
of the ad, and the remainder is billed directly to the manufacturer.
The only plans set up this way at the present time are Acura, Chrysler,
Coleman, Ford, Goodyear, John Deere & Yamaha.
|
| NYPS PLAN |
A co-op plan where the manufacturer has TM's and
listings placed by an advertising agency for all his local dealers.
Manufacturers consider this "co-op", but we do not deal with it at the
local level. All co-op plans outlined in our Manual are for
local yellow pages only.
|
| PLAN SPECS |
(see AD SPECS)
|
| PRIOR APPROVAL |
This means that, prior to printing in the directory, an
ad layout must be approved for co-op by the manufacturer. The
Co-Op Unit handles sending of prior approval requests, and will notify
you if the manufacturer requires any changes in the ad.
|
| PUBLISHING COMPANY |
The directory publishing company (like us) which prints
the joint-billed ads administered by the Selling Company.
|
| QUALIFIED DEALER or DISTRIBUTOR |
Someone who is eligible to participate in a
manufacturer's co-op plan. if a customer is not on a
manufacturer's list of qualified participants, contact the Co-Op Unit.
We will check with the manufacturer to see how he can become eligible;
most of the time this is simply a matter of filling out a form from his
supplier.
|
| SEGMENTED AD |
An ad that has definite sections divided by border-like
lines, with each section devoted to a separate product.
Segmented ad featuring Kohler and Onan
|
| SELLING COMPANY |
A company that handles the administrative work for a
joint-billed co-op plan. They approve or reject the ads, based on
the plan specs, and generate the NYPS invoices enabling us to bill the
manufacturer. They also provide us with the 50/50 forms and ad
slicks for the plan and furnish us with a list of qualified
participants.
|
| SPECIAL BILL INFO |
Information shown on the "Sales Account Information"
page of the DAO that indicates who is paying the other portion of a
joint-billed co-op ad. It will list the name and address of the
Selling Company who administers the joint-billed plan involved.
|
| SPECS |
(see AD SPECS) |
| STATEMENT OF CHARGES |
A statement of the monthly and annualized rates for the
co-op ad(s) on a customer's account. This is sent with a tear
sheet to all co-op customers on file with the Co-Op Unit, approximately
one month after the directory is distributed. It is forwarded by
the customer to his supplier as documentation for co-op reimbursement.
|
| TEAR SHEET or TEAR PAGE |
This is part of the documentation sent to co-op
customers to enable them to apply for their co-op reimbursement.
It is simply the page from the directory on which the co-op ad appears.
This provides the manufacturer with proof that the ad printed as it was
supposed to. The Co-Op Unit sends out tear sheets and statements
of charges to all co-op customers they have on file approximately a
month after the directory comes out.
|
Click here to return to the top
of the page.
The practice
exercises were administered at specific points during the training
session. They were designed to keep the trainees interested in the
material and give them opportunities to put into practice what they had just
learned. Correct responses were given, and each question discussed (if
needed) immediately after each exercise to ensure that the trainees had a
grasp of the concepts and practices before moving on to the next section of
the training.
|
CO-OP PRACTICE
EXERCISE #1
1. "Co-Op" is:
-
a food store where people join and contribute time or
products in return for discounted food prices.
-
a program where college students take time off from
school to work full-time for a company.
-
advertising dollars provided by national manufacturers
and distributors to encourage local dealers to promote their products
or services by sharing the cost.
-
all of the above, but we're most concerned with "c".
2. What percentage of the available co-op funds
does yellow pages advertising account for?
-
10%
-
1/2%
-
14 1/2%
-
1%
3. Regarding co-op, the salesperson's
responsibility is:
-
to include co-op in the sales plan.
-
to explain co-op to the customer.
-
to handle the paperwork properly for co-op.
-
all of the above.
4. If an account is adjusted because the customer feels
misled about co-op, the adjustment will most
likely be charged to:
-
the salesperson who handled the account.
-
the Co-Op Unit.
-
the supervisor of the salesperson who handled the
account.
-
An account would never be adjusted for such a reason.
5. A customer is responsible for paying the full
rate of a co-op ad to [Company].
-
True.
-
False.
-
True, except for an ad sold under a joint-billed plan.
-
False, except for an ad sold under a joint-billed
plan.
|
Click here to
return to the next section of the training after this exercise.
Click here to return to the top
of the page.
|
CO-OP PRACTICE
EXERCISE #2
Listed below are several beneficial aspects of co-op.
Beside each, indicate whether the particular aspect assists primarily
the: |
| |
Manufacturer offering the co-op plan (M),
Local dealer of the product (D), or
Yellow Pages Sales Representative (R).
|
| _________1. |
Makes advertising more inexpensive. |
| _________2. |
Quality control over the ads placed is maintained. |
| _________3. |
Completes a national ad program at a local level. |
| _________4. |
Helps increase sales & commissions. |
| _________5. |
Provides a tie-in with a nationally-advertised product,
thereby showing reliability. |
| _________6. |
Because the ads are reviewed every year, updates to the
plan can be incorporated into them. |
| _________7. |
An ad program seems more attractive to a customer when a
portion of the cost is paid by someone else. |
| _________8. |
Ad layouts are available that are already approved for
co-op. |
| _________9. |
Proof of yellow pages performance is provided as
customers inquire about the product featured in the ad. |
| _________10. |
Proof of publication is provided to apply for co-op
reimbursement.
|
Click here to
return to the next section of the training after this exercise.
Click here to return to the top
of the page.
|
CO-OP PRACTICE
EXERCISE #3
True-False |
| ________1. |
A sales rep should never read a co-op plan directly from
the Manual to a customer. |
| ________2. |
Asking the customer if he knows of any co-op funds
available to him is a good way of finding out about new co-op plans. |
| ________3. |
Spec copy should be ordered to include logos for co-op,
even if you're not sure the customer carries those brand names. |
| ________4. |
Sometimes it is a good idea to sell a co-op ad to a
customer who will buy it for no other reason than the fact that he's
getting co-op. |
| ________5. |
Ad slicks are available in the Co-Op Handbook.
|
Use the Co-Op Guide to answer the
following questions.
- How many co-op plans would be available to a bookstore?
- Will Stanley Door Systems co-op on a TM?
- Are there ad slicks available to you for G.E. Mobile Radios &
Radiotelephones?
- Your customer sells the Quotrek stock & quotation monitor.
He did not use the co-op funds accrued during the past year. Can
he apply those dollars to this year's ad program?
- You are handling a marina that carries Johnson, Mercury, and
Suzuki Outboards. He would like to feature all three in his ad.
Can he do this, and still get co-op on the ad?
- Does Marchon Eyewear offer a co-op plan?
- What is noteworthy about the Ocean Pacific sportswear plan?
- Your customer wants to buy an ad using co-op for TRW, but wants to
hold off on closing the account until later in the campaign. How
could you use co-op to help you close this account now?
- Your customer sells the Laser Disc projection TV by Pioneer.
He has a statement from Pioneer indicating he has purchased $100,000
worth of the product this year. How much of this amount is
available to him for co-op?
How will he be reimbursed for the co-op?
- The customer described above buys a HP ad ($1,000). If he
buys no more Laser Disc products this year, how much in co-op
reimbursement will he receive from Pioneer?
How much would he receive if he buys an additional $100,000 of Laser
Disc products this year?
|
Click here
to return to the next section of the training after this exercise.
Click here to return to the top
of the page.
|
CO-OP PRACTICE
EXERCISE #4
Make any necessary changes in the co-op information
listed on the DAO to handle the cases explained below.
-
The customer was pleased with his ad last year and had
no problems with his co-op reimbursement. He will renew the ad
as-is and wishes to receive tear sheets for Minolta once again for the
forthcoming issue.
-
Everything was fine with last year's ad, but the
customer no longer sells Minolta products. He would like to
place the same size ad this year, but change it to meet the specs for
Ricoh copiers.
-
The customer is going to renew his ad, but he no
longer carries Minolta. He will now specialize in another brand
that does not offer co-op.
-
Last year there was no co-op plan for NEC, the
customer's main line of computers. But, after checking the
Supplement to your Co-Op Manual, you discover a new NEC plan!
You redesign the ad according to the specs outlined in the Manual to
make the ad co-op for this year.
-
You have completed the paperwork for your co-op
account and are entering it on your 5268 for the day. How do you
ensure that the Co-Op Unit will do their part to get your customer's
co-op reimbursement?
|
Click here to
return to the next section of the training after this exercise.
Click here to return to the top
of the page.
|
CO-OP PRACTICE
EXERCISE #5
Polly Esther Pants, of Town &
Country Ford, wishes to participate in the Ford joint-billed program for
her new yellow pages ad. Mrs. Pants wants to place a DHCC ($1,500)
under Automobile Renting & Leasing, and a DHC ($1,000 under Truck
Renting & Leasing. Complete the paperwork necessary to set this up
properly for co-op.
[A mock DAO and all the necessary forms and information
were provided to allow the trainees to complete this exercise, just as
they would see them on a real sales call.]
|
Click here to return
to the next section of the training after this exercise.
Click here to return to the top
of the page.
|
CO-OP PRACTICE
EXERCISE #6
1. The purpose of the co-op query is:
-
to give the Sales Rep more paperwork.
-
to give the Co-Op Rep something to do.
-
to inform the Sales Rep of important information
concerning a customer's co-op reimbursement.
2. Customer-initiated co-op is:
-
not really co-op because there is no plan.
-
posted to a salesperson's figures, the same as regular
co-op.
-
turning an account in as co-op, even if you're really
not sure the customer will get reimbursed.
3. The Co-Op Unit does all of the following
except:
-
send co-op ads for prior approval.
-
call on accounts with sales reps.
-
investigate new co-op plan leads.
-
windows.
-
send the customers documentation needed to apply for
co-op reimbursement.
-
keep track of co-op sales figures.
4. AAYPP stands for:
-
American Association of Young, Porcine Parents
-
American Association of Yellow Pages Publishers
-
Association for the Advancement of Yuppie Paper
Pushers
5. You can win prizes for:
-
selling a lot of co-op ads.
-
furnishing the Co-Op Unit with a lead that results in
a new co-op plan.
-
giving the Co-Op Unit a lead on a testimonial.
-
all of the above.
|
Click here to return to the top
of the page.
|
