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Market Development Funds & Co-Op Program Building Blocks

MDF/Co-Op programs (often more generally known as “trade promotional allowance programs”) are a large expense for most channel marketers—often the largest single expense line item in channel budgets. Yet, many channel marketers fail to capitalize on their program as a business-building tool, instead treating their program as a cost of doing business. Aggressive marketers who embrace the value of the program view it as a means to achieve sales and marketing objectives, and therefore, regularly review and update their program to ensure the program guidelines contribute to those objectives. This reassessment is particularly important in dynamic industries—such as technology—where products, purchase processes, and even the channel partners themselves change with seemingly increased frequency.

When reviewing each foundational element described here, it is important to consider the go-to-market strategy of your channel partners, as well as the programs offered to them by your competitors in addition to your own sales and marketing goals. Developing a program that meets competition or beats competition must be a conscious decision. A properly designed promotional allowance program can be a strong competitive advantage.

This eBook is written as the foundation for creating a new program or evaluating the current MDF/Co-Op program for optimal performance. All MDF and Co-Op programs are based on eight essential building blocks. When each element is thoroughly considered as an independent tactic, the resulting promotional allowance program is truly greater than the sum of its parts, resulting in a well-engineered sales and marketing program.

About the Author

Perks WW Channel Experts

Perks WW Channel provides services and software to help you engage your B2B and indirect channel partners to improve sales effectiveness. With a listing on the Salesforce AppExchange and a global user base exceeding 9.25 million users, Perks WW Channel takes the guesswork out of channel incentives and loyalty programs. Our solutions empower leading global enterprises with the sales and marketing programs they need to produce a competitive advantage through their indirect sales channels. The available solution set encompasses the three most critical areas to optimize indirect channel performance: marketing enablement, incentive management and global managed services. We provide these services to some of the most influential companies in the world, all backed and supported by years of expertise.

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