Trade Promotion Management Software
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What is Trade Promotion Management (TPM) Software?
Trade promotion management (TPM) software helps retailers and manufactures plan, execute, analyze, and report on trade promotion campaigns. These trade promotion efforts (such as discounts, coupons, and other incentives) help organizations build and maintain market share, usually within consumer goods markets. TPM software encompasses elements of budget management and planning, supply and demand planning, trade promotion optimization, and analytics & reporting.
In rapidly changing consumer environments, leveraging up-to-date data and analysis is key to maximizing the impact of trade promotion campaigns. With this focus in mind, some products emphasize their trade optimization capabilities. While many vendors use TPM and TPO interchangeably, TPO can signal a greater focus on the analytics capabilities and data-driven decision-making, vs the more direct or logistical trade promotion tools traditionally used in TPM.
Trade promotion management software helps organizations and internal decision-makers plan and scale trade promotion campaigns using current data and actionable insights. With more informed decision-making, organizations can improve their overall ROI from trade promotion efforts. TPM software also offers improvements in process and planning efficiency. This can reduce time spent on menial functions and improve time to execution.
TPM software is usually used by finance, sales, or operations staff, or others directly involved with demand planning and forecasting. Overall, it is most heavily used by retail organizations, although there may be other edge cases. Many TPM products are implemented as standalone systems, with some larger financial systems offering TPM capabilities. Standalone TPM software can be expected to integrate with other systems, such as retail management tools, supply chain management systems, and logistics software.
Trade Promotion Management Software Comparison
When comparing trade promotion management products, consider these factors:
Campaign Scalability: Will the business need to manage a growing number of trade promotion campaigns over time? If so, how well will each product handle that scaling? Consider factors like the ease of managing multiple campaigns from a central dashboard, adjustable drill-downs and campaign granularity, and any pricing considerations.
Data Management: How well does each platform intake and handle relevant trade promotion data? Is data updated in real time? Are there automated dataflows from other systems into TPM software for rapid analytics?
Data Visualization: How effective and easy is the reporting within the TPM platform? Can TPM KPIs, goals, progress, and other data be easily visualized for executive review and analysis?
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Pricing Information
Pricing will vary by whether a given product is a standalone TPM software or part of a larger financial planning or sales planning platform. Pricing can range in the hundreds of dollars a month, but specific pricing details usually need to be sourced by quote from the vendors.