The document discusses the benefits of implementing a structured promotional management system over traditional unstructured methods. It notes that trade promotion spending accounts for over half of marketing budgets on average and is the second largest cost after cost of goods sold. However, most companies have poor visibility into what promotions are effective. A structured system allows for strategic planning, execution management, reporting and analytics to better analyze trade spend effectiveness and efficiency. Early adopters have seen financial and operational benefits including better control over spending, faster decision making, improved data quality and reporting.

1. Building Smarter Promotional Strategies Trade Promotion is a critical initiative

3. Results of unstructured way of spend management Structured Management Take longer and is more difficult Setting Strategy On Strategy employees required for non-valued-added work more hence delayed in new planned promotions On new plans Major impediment Discipline Delayed actions Data Alerts Reduced – longer to make poorer, less-confident decisions. At time wrong decision due to dirty quality of data Decision-Making Capability On Decision-Making Tactics Lowered – hard, unfulfilling work dealing with errors Employee Morale Increased – upwards of 10% of promotion expense spent Cost Lessened – often unforgiving of simple data errors Branch Satisfaction Effect On Operations

8. Trade Spend Effectiveness Reporting Reporting Capabilities & Analysis Trade Spend V Budget Trade Spend Efficiency & Effectiveness Trade Send Uplift – sales & margin Spend by Merchandize Method Promotion ROI Promotion Overnder-spend Promotion Impact – cannibalization & halo effect Roles Brand Marketing; Customer Marketing; Account Managers; Sales Execs; Finance; Promotional Analyst; Business unit heads; Category Manager; Brand Managers Metrics Volume; Revenue (& growth); Total Promotion Profit; Targets; Market (volume $s); Market Share; Price; Margin %; Trade Spend; Promotion ROI; Promotional Uplift; Order Fulfilment %; Consumer pass through%; Stock Cover Dimensions Customers; Events; Sales Channels; Products; Brands Categories; Promotion; Media types; Time; Locations