Which term describes an agreement where a retailer receives reimbursement for advertising costs from a manufacturer?

The term that describes an agreement where a retailer receives reimbursement for advertising costs from a manufacturer is co-op advertising. This practice allows manufacturers to share the advertising expenses with retailers, making it more feasible for both parties to promote a product.

In a co-op advertising agreement, the manufacturer provides funding or reimbursement to the retailer for a portion of their advertising costs related to promoting the manufacturer's products. This not only incentivizes retailers to promote these products but also amplifies brand awareness and increases sales for the manufacturer. Both parties benefit from this collaborative approach, as retailers can boost their advertising reach without bearing the full financial burden, while manufacturers can ensure their products receive prominent exposure.

Understanding this term is key in advertising and marketing, as it reflects a common strategy used to enhance promotional efforts while sharing costs between different stakeholders in the supply chain.