It is a type of funding that a company provides to its partners, resellers, or distributors to support the marketing and promotion of its products or services.  

The purpose of having MDF is to stimulate the demand or a product or service by providing financial support to a partner, who in turn will use the funds to develop and execute marketing campaigns or activities.

MDF programs typically have specific guidelines on how the funds can be used, and often require partners to submit a proposal outlining their intent to use the funds.  The activities supported by MDF can include advertising, direct mail, trade shows, seminars, training programs, and other promotional incentives that are intended to generate interest in the product or service.

MDF programs can be a win-win for both the company and its partners.  By providing financial support, the company is able to leverage the marketing expertise and local knowledge of its partners to reach a broader audience.  The the partner, MDF can provide the resources needed to develop effective marketing campaigns and generate demand for the company’s products and services

Overall, MDF can be an effective way to build relationships with partners, increase brand awareness and drive sales growth.