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The importance of trade promotion management


Trade promotion management (TPM) is very important in today’s competitive businesses. It can be used to increase product visibility and brand awareness, which will also increase brand loyalty. However, implementing trade promotions that deliver the maximum return on investment is easier said than done.

There are several potential issues that businesses can run in to that can result in overspending, including:

  • Inability to plan and control promotions
  • Inability to track promotions accurately and in a timely manner
  • Inability to analyze promotions to measure performance

This is where TPM comes in. TPM systems are used to assist businesses during the process of planning, budgeting, executing, tracking and analyzing incentive programs. A dependable TPM system can help businesses eliminate those potential issues with planning capabilities, tracking and analysis tools. Here are a couple of important features to look for:

Planning capabilities

Planning promotions can get complex fast, so to make things easier, TPM features such as fund allocation and the capability to assign promotions to different customer and item hierarchies can be highly beneficial.

Tracking and analysis tools

It’s important to have visibility on how promotional programs are performing. Promotions analysis includes the ability to view a promotional program’s performance throughout its life cycle. A good TPM system should provide a comparison of actual versus budgeted spending for different programs for damage control and future planning purposes.

Trade promotions can offer many benefits to businesses, such as increasing product visibility and brand awareness; however, they also comes with potential risks that may result in over expenditure. Fortunately, a reliable TPM system can be put in place to help cut down on those potential risks so that your business can fully benefit from trade promotions.


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