OPtimizing ROI From Co-OP/Mdf

10 Questions | Total Attempts: 36

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OPtimizing ROI From Co-OP/Mdf - Quiz

The purpose of this exercise is to help cement the ideas of how to maximize ROI from a Co-op/MDF program. This particular quiz site has lots of ads so apologies in advance for that.


Questions and Answers
  • 1. 
    Channel expenditures can run as high ___ - ____%  of the cost of sales for many marketers.
    • A. 

      0 - 10%

    • B. 

      10 - 25%

    • C. 

      30 - 40%

    • D. 

      50 - 70%

    • E. 

      75 - 80%

  • 2. 
    Co-op programs provide eligible channel partners with marketing allowances that:
    • A. 

      Are negotiated each year. Often, pre-approval requirements are unnecessary and guidelines are generally not used.

    • B. 

      Are negotiated each quarter. Often, pre-approval requirements are overlooked and guidelines are inconsequential.

    • C. 

      Accrue as a percentage of sales. Often, pre-approval requirements are unnecessary and guidelines are generally not used.

    • D. 

      Accrue as a percentage of sales. Often, pre-approval requirements are limited and guidelines are well defined.

  • 3. 
    MDF programs are discretionary funds provided by manufacturers to their eligible channel partners. The available funds are often not  provided to channel partners in advance, but are negotiated by channel partners and their vendor to achieve specific goals. MDF programs often require less complete proof-of-performance documentation than traditional co-op programs, and pre-approval is required.
    • A. 

      True

    • B. 

      False

  • 4. 
    Co-op programs are more often associated with traditional advertising activities in which the costs and proof of performance is easily substantiated.
    • A. 

      True

    • B. 

      False

  • 5. 
    MDF programs are most often associated with business development activities that are considered  “nuevo expense” items as mandated by the Sarbanes Oxley doctrine
    • A. 

      True

    • B. 

      False

  • 6. 
    To maintain the classification of reimbursements as “Markeing expenses,” all of the following condiions must exist: 1. The payment covers a service by the partner that offers a clear benefit to you2. The benefit is clearly separable from the sale of the product3. The benefit could be purchased by you from a source other than the partner4. You have obtained proof of performance to reasonably esimate true cost
    • A. 

      True

    • B. 

      False

  • 7. 
    The Robinson-Patman Act is a US Federal act formed in 1914 as an ani-trust law to ensure fair trade between competing retailers by limiting wholesale price discrepancies granted to them by their suppliers.One interpretation of this law is that:
    • A. 

      “All resellers must be offered similar programs on an equal basis"

    • B. 

      “All competing resellers must be offered similar programs on a proporionately equal basis"

    • C. 

      “All non-competing resellers must be offered the same program on an equal basis"

    • D. 

      “All competing resellers must be offered identical programs on a proporionately equal basis"

  • 8. 
    Program Metrics generally fall into ______ form(s):
    • A. 

      One; Reporting Metrics

    • B. 

      Two; Strategic and Tactical

    • C. 

      Three; Strategic, Tactical and Analytical

    • D. 

      Four; Strategic, Tactical, Analytical and Transactional

  • 9. 
    Based on behavioral data entered by channel partners inaccurate data is worse than no data
    • A. 

      True

    • B. 

      False

  • 10. 
    Administration practices and systems should:
    • A. 

      Automate the process, enhance reporting, and streamline turn-around time

    • B. 

      Simplify the process, enable reporting, and reduce turn-around time

    • C. 

      Clarify the process, enhance reporting, and eliminate turn-around time

    • D. 

      Complement the process, enhance reporting, and measure turn-around time

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