In the distribution world, marketing has historically played second fiddle to sales, logistics and operations. Many distributors viewed it as a luxury—nice to have, but not essential. Instead, they leaned on suppliers to provide basic materials or sporadic promotional assistance.

Suppliers, for their part, often struggled to connect with the end user. Without a direct line to the customer, they relied on distributors to carry their brand message forward. But there was a challenge: how could they ensure their message was heard—and acted upon—if marketing wasn’t a priority for the distributor?

This mutual dependency gave rise to co-op marketing, a simple concept where suppliers offered to share the cost of marketing campaigns, typically covering 50% of the execution costs. The model made sense: suppliers gained reach, distributors got support, and customers got the information they needed to buy. But as with many good ideas, execution and expectations have evolved over time.

From Co-op to Strategy: A Maturing Model

Co-op funds are still a foundational part of many supplier-distributor relationships, but they’ve come a long way. In the early days, they were often spent on branded giveaways, golf tournaments or logo-heavy print ads with minimal tracking or return.

Over time, suppliers began to tighten requirements. Co-op became more structured, with clearer usage guidelines and expectations for performance. Suppliers started asking smarter questions: What’s the goal? Who’s the target audience? How will we measure success?

Alongside this shift, many distributors began investing in internal marketing resources. They built teams, hired specialists and started to see marketing not as a cost—but as a competitive advantage. The best marketers in distribution now drive awareness, support product launches, boost e-commerce and engage customers in meaningful ways.

Marketing has evolved from a support function to a strategic driver of growth.

Why Marketing Matters More Now Than Ever

When deployed strategically, marketing can:

• Build lasting brand equity in your local markets
• Promote supplier products to wide customer segments
• Introduce new offerings with greater speed and impact
• Offer educational content that builds customer loyalty
• Generate new demand for services, categories, or solutions
• Support digital initiatives and eCommerce adoption
• Strengthen relationships across your supplier network

In other words: marketing isn’t fluff—it’s fuel for growth.

Funding Your Marketing Plan

So how do distributors pay for these efforts? There are three main sources:

1. Co-op Funds: These are earned based on prior-year purchases and used for pre-approved initiatives. They require receipts, documentation and are subject to deadlines—typically “use it or lose it” by year-end.
2. Self-Funded: Distributors committed to growth often allocate part of their own budget to marketing, especially for campaigns that reinforce their brand or support long-term positioning.
3. Market Development Funds (MDFs): Also known as Business Development Funds (BDFs), MDFs are discretionary supplier dollars offered to distributors for strategic, plan-based initiatives. Unlike co-op, MDF is not automatically earned. It’s granted based on proposals that show potential for ROI, alignment with supplier priorities, and a shared vision for growth.

What is MDF—and How Do You Use It?

MDF is a powerful, flexible funding tool. It can be used for campaigns that fall outside of standard co-op parameters—think product launch blitzes, digital advertising, content creation, events or targeted outreach programs.

However, MDF is rarely advertised. To access it, distributors typically work with their supplier representative to submit a proposal. These plans often outline:

• The target audience
• The goals of the initiative
• How success will be measured
• Budget allocation
• Estimated ROI or impact

Approval is based on volume, strategic importance, market potential and campaign effectiveness. In today’s environment, suppliers are much more willing to say yes when they see that a distributor is organized, intentional and ready to execute.

Supplier Support: New Rules, New Expectations

Today, supplier funding is tied more closely to performance and partnership. Suppliers want to see that:

• Your internal teams—sales, purchasing and marketing— are aligned
• Their brand is represented clearly and strategically
• The initiative supports product movement and/or customer engagement.
• You’re willing to invest alongside them, not just ask for handouts

In short: they want a true partner, not just a pass-through.

Many suppliers now set usage timelines (e.g., “spend 50% of your allocation by Q3”) and apply limits to what’s reimbursable. Giveaways and golf events have given way to sales enablement, digital lead generation and customer education.

Now’s the Time: Maximize What’s Left in the Year

As we approach mid-year, it’s the perfect time to assess what’s still available:

• What have you earned in co-op or negotiated through MDF?
• How much have you spent so far?
• What’s left, and what can you do with it before it expires?

If you have large suppliers, schedule planning conversations now. Discuss initiatives that align with both of your goals. If you’re working with multiple suppliers on a single campaign, consider:

• A co-branded flyer or email
• A sample box with a fun contest and sales incentive
• A themed training event or counter day
• Application-based campaigns (sustainability, winterization, remodeling, etc.)
• Digital advertising with shared targeting
• Participation in a local homebuilder or renovation show

Need help? Ask your supplier: “Here’s what I’ve got—what’s worked well with other distributors?” Many have turnkey programs or promotional kits available.

Final Thought: This is About Growing Sales—Together

At the end of the day, marketing isn’t just about flashy logos or colorful flyers. It’s about growing your business—and doing so in partnership with the suppliers who want to grow with you.

Marketing works best when it’s planned, purposeful and supported. Use what’s available. Build something meaningful. And don’t leave supplier support on the table. Because in today’s competitive landscape, marketing isn’t optional—it’s essential!

Have questions about marketing strategy or co-op funds? Please reach out to me, IMARK Plumbing Director of Marketing Kaitlyn Martel at kmartel@imarkgroup.com to discuss!