How Do Manufacturers Co‑Fund Dealer Marketing?
Turn co‑op, MDF, and incentive dollars into measurable leads, sales, and loyalty. Design simple rules, automate claims, and prove ROI across your dealer network.
Quick Answer
Manufacturers co‑fund dealer marketing through co‑op (earn‑as‑you‑sell accruals), MDF (proposal‑based discretionary funds), and incentives (SPIFFs, rebates). Programs define eligibility, approved tactics, brand guidelines, and evidence (POE) for reimbursement. A PRM/TCMA portal automates budgets, pre‑approvals, asset delivery, local ad execution, claims, and audits. Success is tracked with claimed rate, time‑to‑reimbursement, cost per lead/sale, partner participation, and ROI at brand and dealer levels.
What’s Different About Co‑Funding Dealer Marketing?
Manufacturer–Dealer Co‑Funding Playbook
A practical sequence to boost local demand while protecting brand and improving ROI.
Design → Budget → Approve → Execute → Claim → Audit → Optimize
- Design the program: Define co‑op vs. MDF, accrual formula (e.g., 2–5% of purchases), eligible tactics, and tiered reimbursement rates.
- Allocate & publish budgets: Roll down budgets by dealer, region, and product; set use‑it‑or‑lose‑it rules and carryover policy.
- Pre‑approve requests: Standardized briefs with media plan, targeting, and expected outcomes; encumber funds on approval.
- Execute locally: Launch via TCMA marketplace (templated ads, landing pages) or approved vendors; enforce UTM/phone tracking.
- Claim & reimburse: Submit invoices, screenshots, flight dates, and lead/sales evidence; auto‑validate and pay via ACH.
- Audit & govern: Randomized audits, MAP checks, duplicate detection, and exception management with appeal workflow.
- Optimize & report: Roll‑up ROI by tactic/region, redistribute MDF, promote best‑practice kits, and adjust reimbursement rates.
Co‑Funding Capability Maturity Matrix
| Capability | From (Ad Hoc) | To (Operationalized) | Owner | Primary KPI |
|---|---|---|---|---|
| Program Design | One‑off reimbursements | Documented co‑op/MDF policy with tiers and rates by tactic | Channel/Brand | Participation Rate, Claim Approval % |
| Budgeting | Manual spreadsheets | Portal budgets with accruals, encumbrance, and carryover logic | Finance/Partner Ops | Budget Utilization, Time‑to‑Reimbursement |
| Execution | Dealer‑chosen vendors, variable quality | TCMA marketplace with approved vendors and brand‑safe templates | Partner Marketing | CPL/CPS, Brand Compliance |
| Measurement | Anecdotal results | Lead & sales attribution with call tracking and DMS/CRM matchback | RevOps/Analytics | ROI, Incremental Sales |
| Governance | Email approvals | Workflow SLAs, brand/MAP checks, audit logs, and clawbacks | Legal/Compliance | Audit Pass %, Dispute Resolution Time |
| Enablement | PDF guidelines | Kits: playbooks, ad templates, landing pages, and training | Enablement | Kit Adoption, Best‑Practice Lift |
Client Snapshot: Accelerating Local Demand
After launching a TCMA marketplace and tightening MDF approvals, a manufacturer increased budget utilization by 28%, cut reimbursement cycles from 45→15 days, and lifted local CPL by 22%. Explore outcomes: Comcast Business · Broadridge
Align dealer journeys to The Loop™ and govern transformation with RM6™ to scale compliant, ROI‑positive local marketing.
Frequently Asked Questions about Co‑Funding Dealer Marketing
Operationalize Co‑Funding with Confidence
We’ll design the policy, build the portal, and stand up a TCMA marketplace that dealers actually use.
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