Recently, Dr. John Stanton, Professor of Food Marketing at St. Joseph’s University, debunked some common misconceptions that are held about TPM. In particular, he debunks the myth that “the investment in Trade Promotion Optimization is not worth the dedication of time and incremental stafﬁng resources because inaccurate or disparate data makes optimized results no better than a “gut” feeling.”
“Some CPG companies are hesitant to consider Optimization as a justifiable investment for post-event analysis and promotion planning. This stems from their belief that the complex process leads to inaccurate results and misinformed decisions. While concerns about accuracy are understandable, the hesitancy is unnecessary. A comprehensive Trade Promotion Optimization (TPO) program provides functionality beyond the limited transactional observations made in TPM systems.
Data harmonization – Optimization, like any data analysis, begins with having clean integrated data. The ability to tightly integrate POS, shipment, pricing, cost-of-goods and promotions spending data in an intelligence center eliminates errors, and increases the data efﬁcacy for analysis and planning, without manually intensive or redundant data entry.”
Click here to read the full article on CGT!