Improve Trade Promotion Effectiveness with Consumer Goods Cloud (2024)

FAQs

What are trade promotions in CPG? ›

Trade promotions are a component of revenue management, involving marketing campaigns and activities targeted at selling more to the final consumer in a push strategy through wholesalers and retailers.

Salesforce Consumer Goods Cloud helps companies to unify planning and execution on a central platform. This enables key account managers to optimize forecasting and improve trade promotions, field teams to effective retail execution, and service teams to deliver excellence.

Trade promotion optimization (TPO) is the process of utilizing integrated goals, factoring in promotion (e.g. price, duration) and supply constraints, and predictive analytics to create continuously improving trade promotion strategies and results.

consumer sales promotions focus on getting consumers to buy their products, whereas trade sales promotions focus on getting wholesalers and retailers to purchase. Explanation: The objective of both consumer and trade sales promotions is to increase the sales revenue.

Calculate Incremental Sales: Determine the additional sales generated by the promotion, factoring in baseline sales to isolate the promotion's impact. Analyze ROI: Compare the incremental sales to the cost of the promotion to assess its profitability and financial effectiveness.

The primary goal of trade promotions is to encourage sales people, retailers, and wholesalers to stock and sell more of a product. Firms employ the strategy to increase sales through retail channels.

Salesforce helps increase rep efficiency by automating manual processes. It provides a centralised location to access competitive information, and lets reps get in touch with the experts – the ones who know the product or service inside out.

Trade promotion management (TPM) refers to the process of planning, executing, and analyzing promotional activities aimed at driving sales and improving the relationship between manufacturers or suppliers and their retail partners. It encourages retailers to promote and sell a manufacturer's products.

In trade promotions, the “cost” of the promotion is absorbed by the manufacturer as retailers buy the product at a discounted price and then pass the savings on to consumers. Retailers can then use these promotional rates to market these products and drive consumer behavior.

While TPM provides the necessary framework for planning, executing, and evaluating trade promotions, TPO takes it a step further by leveraging advanced analytics to optimize promotional investments and drive maximum returns.

Why is trade promotion necessary? ›

For consumer products and goods (CPG) brands, a trade promotion is an invitation for customers to purchase or try a product at a discount. This is intended to drive demand, whether it is to move existing products to decrease a surplus or to create demand for a product in a new category.

The main objective of trade promotions is to increase sales of a product by making it more attractive to potential customers. In the case of innovations, promotions are aimed at increasing the awareness of the product by highlighting its benefits and value proposition.

The economic value, informational content, and affective appeal routes are interactive and influence the effectiveness of sales promotions.

Trade-in promotion is a marketing strategy where customers are encouraged to exchange their old or used products for a new one, often with a monetary incentive or discount. This approach not only boosts sales of the new product, but also helps companies to take back older versions, which may be refurbished or recycled.

Trade promotion management (TPM) refers to the process of planning, executing, and analyzing promotional activities aimed at driving sales and improving the relationship between manufacturers or suppliers and their retail partners. It encourages retailers to promote and sell a manufacturer's products.

​​Trade spend is the money that manufacturers in the CPG industry spend on marketing and promoting their products through retailers and distributors. This investment is aimed at increasing sales and enhancing the visibility of their products in the marketplace.

Trade marketing is focused on retailers, wholesalers, and distributors, aiming to increase the demand within a chain. Conversely, shopper marketing is focused on buyers. This approach aims to create an environment that will drive consumers to make a purchase and ensure the best customer experience.