Cooperative- is an autonomous and duly registered
association of persons, with a common bond of interest
who have voluntarily joined together to have achieve
social, economic and cultural needs and aspirations.
History of Cooperative
1. Agricultural marketing cooperative which Jose Rizal had
organized while on exile in 1896
2. Rural Credit Cooperative bill was introduced on 1907
and was passed on 1915
3. Act No. 2818 was enacted primarily to grant loan to
members of rural credit association in 1919
4. The cooperative Marketing law Act No. 3425 was passed
on 1927
5. Rev. Allen R. Huber organized church members in Vigan,
Ilocos Sur into the country’s first privately-initiated credit
union.
6. The government passed commonwealth Act No. 287 in
1938 to strengthen the cooperatives
7. Commonwealth act No.585 the Cooperative act on 1940
8. National cooperative administration was established.
The function of NTC and the management of the NCF were
transformed to it
9. Supervision of the Emergency Control Administration
10. Cooperative were transformed to the Philippines relief
and trade rehabilitation administration
11. Executive order No. 95 for example, transferred those
powers to National cooperative and small business
corporation, NCSBC was abolished in its place, the
cooperative administration office (CAO)
12. Create Agricultural credit and cooperative financing
administration (ACCFA) in Rep No. 821 and Farmers
Cooperative Marketing was organized and finance by
(ACCFA)
13. In 1957 the Philippine Non-Agricultural cooperative
law (Rep. Act No. 2023) was passed where it separates
agricultural cooperative from non-agricultural
14. In 1960, the Catholic Church 85% Filipino people
proclaimed interest in the cooperative movement
15. In 1963, there were approximately 750 non-
agricultural cooperatives registered with cooperative
administration office with membership of more than
200,000
16. The Church efforts resulted in thousand of cooperative
and linked up with another to form secondary level called
federations
17. In 1969 the code of agrarian reform (Rep Act No. 6389)
was passed
18. Martial law regime wanted cooperative to new society
of bagong lipunan where cooperative could no exercise
freedom to achieve the economic wellbeing
19. The decree abolished CAO and organized bureau of
cooperative development (BCOD) under the department
of local government and community development
20. Samahang Nayon was organized at the barrio level.
21. Corazon Aquino was catapulted as new president and
cooperative leader redirect the government’s cooperative
involvement away from managing to one support to
another promotion of cooperative
Seven Principles
1. Voluntary and open membership- Cooperatives are
voluntary organization, open to all person able to use their
services and willing to accept the responsibilities of
membership
2. Democratic member control- Cooperative are
democratic organizations controlled by their members,
who actively participate in setting their policies and
making decision
3. Member economic participation- Cooperative
contribute equitably to, and democratically control, the
capital of their cooperative
4. Education, training and information- Cooperative
provide education and training for their members, elected
representatives, managers and employees so they can
contribute effectively to the development of their
cooperative
5. Autonomy and independence- Cooperative are
autonomous, self-help organizations controlled by their
members
6. Cooperatives among cooperatives- cooperatives service
their members most efficiently and strengthen the
cooperative movement by working together through local,
national and international structure
7. Concern for community- ensuring the development of
communities- economically, socially and culturally
Advent of Cooperative in the Philippines
Cooperative movement- which people may improve their
welfare arrived in the Philippines at the beginning of the
American regime
Cooperation law- providing legal authority under people
may organize any type of corporation
Agriculture credit association Act- this law enabled the
creation of agricultural credit association and provided for
their regulation
Cooperative marketing law- this law provided for the
organizations of farmer’s cooperative marketing
association (FACOMA) under cooperation law.
Current situation
-Senate bill No. 2264 and house bill No. 4312 was finally
passed by senate and the house of representative on
December 16, 200
-The Philippine code of 2008 was signed by the president
Gloria Macapagal Arroyo into law on February 17, 2009
Types and Categories of Cooperatives
Credit cooperative- promotes and undertakes savings and
lending services among its members
Consumer cooperative- is to procure and distribute
commodities to members and non-members
Producers cooperative- May be agricultural or industrial,
formed and operate by its members to undertake
production and processing of raw materials into finished
products for sale by the cooperatives
Marketing cooperative- engages in supply of production
inputs to members and markets their products
Service cooperative- engage in medical and dental care,
hospitalization, transportation, insurance, housing, labour,
electric light and power, communication, professional and
other services
Multipurpose cooperative- combines (2) or more of the
business activities of these different types of cooperative
Advocacy cooperative- promotes and advocates
cooperatives among its members and public
Dairy cooperative- engage in production of fresh milk
which may be processed and/or marketed as dairy product
Education cooperative- primary purpose of owning and
operating licensed educational institutions
notwithstanding the provision of Republic Act No. 9155
Electric cooperative- purposed of undertaking power
generations, utilizing renewable energy sources
Financial service cooperative- for the primary purpose of
engaging in savings and credit service and other financial
services
Fishermen cooperative- organized by marginalized
fishermen in localities whose products are marketed either
as fresh or processed products
Health service cooperative- organize primary purpose of
providing medical, dental and other health service
Housing cooperative- to assist or provide access to
housing for the benefit of its regular members who
actively participates in the saving program for housing
Insurance cooperative- the business in insuring life,
poverty of cooperatives and its members
Transport cooperative- includes land and sea
transportation, limited to small vessels
Water service cooperative- operates and manages water
systems for the provision and distribution of potable water
for its member and their households
Workers cooperative- its purpose is to provide
employment and business opportunities to its members
and manage it in accordance with cooperative principle
Advertising
Advertising- is an audio or visual form of marketing
communication that employs an openly sponsored, non-
personal message to promote or sell a product, service or
idea. Sponsors of advertising are typically businesses
wishing to promote their products or services.
Online advertising- uses the internet in delivering
marketing message to attract customers
Product placement- brands embedded in media
Press advertising- painted medium- news paper, magazine
or journals
Newspaper advertising- can promote your business to a
wide range of customers. Display advertisements are
placed throughout the paper, while classified listings are
under subject headings in a specific section.
Magazine- Advertising in a specialist magazine can reach
your target market quickly and easily. Readers (your
potential customers) tend to read magazines at their
leisure and keep them for longer, giving your
advertisement multiple chances to attract attention.
Radio- Advertising on the radio is a great way to reach
your target audience. If your target market listens to a
particular station, then regular advertising can attract new
customers
Television- has an extensive reach and advertising this way
is ideal if you cater to a large market in a large area.
Television advertisements have the advantage of sight,
sound, movement and colour to persuade a customer to
buy from you. They are particularly useful if you need to
demonstrate how your product or service works.
Directories- list businesses by name or category (e.g.
Yellow Pages phone directories). Customers who refer to
directories have often already made up their mind to buy -
they just need to decide who to buy from.
Outdoor and transit- There are many ways to advertise
outside and on-the-go. Outdoor billboards can be signs by
the road or hoardings at sport stadiums. Transit
advertising can be posters on buses, taxis and bicycles.
Large billboards can get your message across with a big
impact. If the same customers pass your billboard every
day as they travel to work, you are likely to be the first
business they think of when they want to buy a product.
Online- Being on the internet can be a cost-effective way
to attract new customers. You can reach a global audience
at a low cost. Many customers research businesses online
before deciding whom to buy from.
Billboard advertising- Large structures located in public in
places
Mobile billboard advertising- used in sidetracks
In-store advertising- advertising placed in retail store
Coffee cup advertising- advertisement place upon coffee
cup
Street advertising- outdoor advertising on street furniture
Sheltered outdoor advertising- large mobile structures
(tents) in public places
Celebrity branding- celebrity power, fame, money,
popularity
Custom-generated advertising- blogs, websites, wikis
Aerial advertising- using aircraft, balloons, to create
displays advertising media
Friendertising- advertising through social networks
Purpose of advertising
 Enhance the image of the company
 Create a need for product or service
 Concentrate new uses of the product
 Reinforce the salespeople
 Draw customer to the business
 To hold existing customers
 Cooperative marketing
 It is the collaborative efforts of two or more
companies working together in ADVERTISING
and PROMOTIONAL EFFORTS to reach the same
goal.
 Combining advertising, promotion or branding
efforts.
 Sometimes referred to as coop-advertising.
 Advertising costs will be divided between
partnering companies.
 Trusting one another ethically and fairly to
customers and employees is important in
working with another.
Development of Cooperative Marketing:
 Establish a well dedicated marketing committee
to guide and inform decision making for
destination marketing;
 It should involve range of industry stakeholders
and be based on shared values and goals;
 Cooperative marketing should promote
consistent and shared “brand” or destination
image in the promotional and advertising
techniques selected;
 The identification of promotional techniques
should also be based on the assessment of
target market and competitiveness attributes;
 It should be targeted to specific target market
segment. The process of dividing the market into
different customer segments.
 Clear roles and responsibilities should be
developed for all stakeholders involved in the
marketing partnership.
 A partnership agreement or MOU between
stakeholders is necessary for management of
cooperative marketing initiatives;
 The development of private/public partnership
can be very effective type of marketing
partnership;
 Evaluating the success of collaborative marketing
efforts is important in identifying future
opportunities and strategies.
 Marketing and Advertising partnerships are one
of the fast-growing ways to expand your target
prospect and join forces to create an even
stronger, more effective marketing campaign.
 BENEFITS OF COOPERATIVE MARKETING:
1. You may be able to reach a larger target
audience (Two heads are better than one);
2. An effective way to stretch your advertising
budget;
3. An effective way to reach a larger prospect
base.
 Two businesses may swap mailing lists or may
agree to include the other’s marketing flyer or
materials in a mailing. Often magazines who
reach out to similar audiences may swap or
trade advertising space so that each can
advertise in the other’s publication.
 This can save money and extend marketing
efforts.
 There are no hard and fast rules that dictate how
cooperative marketing should be handled.
 You’ll need to evaluate partnerships based on
your marketing plan, your company’s mission,
vision and what seems to make common sense
in terms of expanding your public relations.
 Make sure that any agreements between two
parties are in writing and have been well
communicated to prevent problems and
misunderstandings from developing.
Steps to follow in reaching your target market:
1. Undertake market research - use both primary
and secondary research.
2. Collate your market research results, then test
out and trial your business.
3. Find out the prices and so on for all the types of
media your target market audience use and take
notice of.
4. Create a marketing plan and a marketing plan for
your business products and services.
5. Decide how you will measure your success and
results, how will you find out what has been
successful and what has not.
RETAIL COOPERATIVE MARKETING STRATEGIES:
CO-BRANDING- It occurs when two or more distinct
brands contribute funds and resources to a joint marketing
endeavor.
Ingredient Branding – When a cake manufacturer might
advertise that its icing contains famous brand of chocolate.
Cooperative Branding – occurs when two or more
businesses participate in joint advertising or
Complementary Branding – Occurs when two or more
businesses advertise themselves as fitting naturally with
each other.
Practical cooperation – they are based on practical
arrangements. Example: An auto parts store has little
reason to sell candy and beverages, so it might allow
vendors to install machines outside its entrance. The
vendor makes money from machines, while the
Whose role is marketing?
 In industries where customer purchases are
highly influenced by distributors, channel
marketing and channel marketing support are
essential for success.
 If the distributor has the choice of which
products to promote, the choice will be made
based upon support offered and profitability
opportunity.
 Two forms of channel marketing:
 Coop Marketing Funds – It is when
manufacturers and distributors share the direct
marketing investment in support of specific
initiatives.
Market Development Funds – this funds are
provided to distributors on an “as needed” basis
to support customer-driven, performance
oriented strategies.
Channel Marketing – Involves finding new
partners to help transfer goods from producers
to consumers.
It is a pathway through which goods flow from
producers to customers.

Developing a co-op program:

1. Identify the objective. Does it meet
competition? Generate greater distributor
marketing involvement, focus on specific
markets, be responsive to customer requests,
and create a competitive difference.
2. Analyze prior marketing expenditures. Are your
top 20% of customers using 80% of your
marketing funds? Who are your good distributor
marketers?
3. Determine where funds are currently spent.

4. Identify competitive strategies. It is a long term

action plan that is devised to help the company
gain a competitive advantage over its rival.
5. Solicit distributor and sales organization output.
6. Identify marketing tools which effectively
promote your brand and your products.
7. Develop co-op program. “If you spend some
money, the manufacturer will also spend
money”.
8. Train your sales organization on marketing tools
that work and on your program.
9. Provide usage goals to your sales organization.
10. Promote the program to distribution channel.