Ad budgets can be really tight for a small business. Trying to reach a large audience with no money for marketing can be one of the most challenging tasks your business will face. Likewise, competing against companies with massive ad budgets can make it virtually impossible to get your products in front of the right consumers. Because of this, trade promotion marketing (TPM) can really change the path to your business’s success. TPM can be one of the most beneficial ways to increase product visibility and drive sales through the roof. However, it can also be a huge waste of time and money if not carried out correctly. Therefore, Retailers, Distributors, and Manufacturers alike must work together and create closely aligned partnerships and short-term goals that follow a data-driven marketing plan.
What Is Trade Promotion Marketing?
Trade Promotion Marketing forms a cost-sharing partnership between manufacturers and their partners. This arrangement results in trade or consumer advertising, as well as various other types of promotions. The costs may be shared between the two, or the manufacturer may pay all costs. In the end, the partnership depends on what each party is able to bring to the table. Most partnerships provide manufacturers with the means to increase their budgets for advertising. Both parties are able to grow their operations together. This might sound familiar to Co-Op Marketing, and that’s because Co-Op marketing is a type of trade promotion marketing. They are very similar in terms of what they can provide for manufacturers looking to grow their advertising operations.
Some of the more popular types of trade promotions are:
- Volume Discounts
- Price Discounts
- Co-op advertising
- In-store displays and product sampling
In addition, there are countless other types of promotions your business can participate in. Your industry and position in the market should provide a good look at where you may need some additional help. If not, there are countless trade promotion management teams who will know exactly where help is needed.
Driving Growth with Promotions
Even the most successful strategies and campaigns can be improved upon. That’s why It’s very important to drive all new growth strategies with data. Doing so will give your company the lift in sales you are looking for. By using real-time data, companies are better able to understand the “why” behind what has worked and what has not. Oftentimes, companies fail to dig deeper and understand the consumer reasoning behind market responses. Because of this, they’re led to a lack of a plan, which then leads them straight to disappointing results. Getting your company the right tools will be what ultimately makes or breaks the success of your promotions.
What to Look for In a Tool for Managing Trade Promotions
1. Optimization Software
One of the first tools you need to get is optimization software for your trade promotion marketing. The software should be able to eliminate time-consuming data processes and make the measuring/planning of trade promotion marketing campaigns much easier for both parties. In addition, good software should use real-time data from various sources and consumer touchpoints. This gives you the ability to see results instantly and optimize promotions to better suit the campaign going forward.
2. Management Software
Another tool your company will need to use is management software for your trade promotions. This software should match campaigns to opportunities, leads, and closed deals, and allow partners access to their advertising/marketing dollars in a streamlined, easy-to-follow format. As a result, you and your partners are provided information quickly and you are able to clearly communicate with your channel partners.
The software you choose should enable:
Auto-Generated Custom Performance Analytics: Ability to perform channel analytics by territory, reseller, product, or distributor.
Track Marketing Funds: Tracks funds by customer, territory, or fund type including shows, ads, and training.
Seamless workflow: Admins can set up workflows to approve payments and claims.
Amplify Your Trade Promotions With Computer Market Research
Remove stress from your program by implementing CMR’s Co-Op/MDF Module. As a vendor, you can easily communicate with your partners and actively engage your partners throughout the sales and marketing process.
Computer Market Research offers a module that provides manufacturers/vendors the ease and simplicity of a customized online form for their partners. For instance, the system manages the approval, reply notification, and closure incentives processes. The whole process takes place in one centralized web-based solution. By saving time and eliminating paperwork, CMR’s module allows partners the ability to review data in real-time. Additionally, the module sends automatic reminders to partners so that deadlines are kept. Computer Market Research’s software allows companies to sell more effectively by empowering the individual business owner to actively participate in the marketing process.
- Saves time
- Less paperwork
- Reduces admin processing
- Accelerates the process
- Increases partner satisfaction
- Real-time data
- Increases ROI visibility
- Improves tracking
- Improves campaign planning
Schedule a demo with our team to see what our modules can do for you today!
Additionally, contact a CMR Rep today with any questions you may have at (702) 247-1120 or firstname.lastname@example.org.