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Trade Promotion Optimization - Clicflyer

What is Trade Promotion Optimization?

Trade Promotion Optimization (TPO) is the process of constantly improving the effectiveness of trade promotion strategies by optimizing them according to the business goals, ongoing supply, and promotion constraints. The main objective of TPO is to optimize the value of every penny invested in trade promotions.


Trade promotion analytics is a data-driven process by which brands can minimize expenditure and maximize their ROI on trade promotions. According to reports, over 55% of the budget spent on trade promotion fails to raise consumer awareness in a meaningful way. TPO is important to equip better allocation of the trade budget.


Any obstacles or constraints that affect the ability to reach the desired goals can be tackled by focusing on strategic promotions and use data-backed insights to predict the potential outcome of the promotion. Brands will be enabled to create a cycle of constant improvisations when it comes to trade promotion strategy. The longer a brand uses data to curate its TPO strategy, the more meaningful the insights will get. This can help organizations set realistic goals and accurately predict what stands in the way of reaching them.


TPO plays an important role in the production fields through which the products can be sold in the market. It segregates the data about the newer and better products introduced in the market. The importance of Trade Promotion Optimization and Marketing are as follows:


1. Trade promotion analytics provide trade information concerning exclusive products along with their selling advantages.


2. It encourages and enables the retailers to give some extra space for best-selling and trending products.


3. It encourages the re-sellers to engage in certain sales activities based on the previous historical data.


4. Trade promotion is one of those data-driven strategies that when used correctly can marginally increase the demand for certain products.


5. It aims towards providing the customers with exactly what they are looking for. It helps companies create awareness about brands among the public. It promotes the production of in-demand products and aims towards customer satisfaction and aids the widespread distribution of products.


6. Trade promotion optimization highlights the availability of products throughout the year, enabling companies to keep their stock holdings updated. It is an excellent way to scale the selling trends of products and distinguish them accordingly.


7. It promotes trending and best-selling products with the help of the Internet through E-commerce websites and channels.


8. It can be carried out in several ways including advertisements in newspapers, television, online ads, or with the help of social media platforms.

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