What Is Trade Promotion Management (TPM)?

If you’re dealing with a complex distribution network, you already know that promotions are a double-edged sword. On one hand, trade promotions are essential to drive secondary sales. On the other hand, they often spiral into a messy, unaccountable web of schemes, discounts, and claim disputes. 

That’s where Trade Promotion Management (TPM) comes in. 

TPM is the structured process of planning, executing, tracking, and analyzing trade promotions to ensure they’re aligned with your sales goals—and that you’re not bleeding margins without results. 

The Real Problem Behind Promotions 

Most companies throw money into promotions without visibility or control. Schemes are launched through emails or WhatsApp messages, distributors interpret them their own way, and you find out weeks later that the numbers don’t add up. Claims start flooding in. Approvals get delayed. Sales reps don’t know which scheme is active in which region. 

If this sounds all too familiar, you’re not the only one dealing with it. A study by Nielsen found that companies spend nearly 20% of their revenue on trade promotions, yet only about a third of those efforts manage to break even or generate a return. That’s a lot of money going in, with very little coming back. 

How a Distribution Management Software Solves It 

Let’s start with promotion planning. Instead of relying on scattered communication, you can create region-wise or distributor-specific schemes directly within the system. Only the right distributors see the promotions meant for them. That simple layer of control removes a lot of the usual back-and-forth and makes execution cleaner on the ground. 

Claims, which are usually a hassle, become easier to handle. Distributors can upload their invoices or proof of execution directly into the system. From there, everything moves through the right approval steps—no chasing emails, no missed deadlines. 

What really changes the game, though, is the visibility. You can actually see how each scheme is performing as it happens. Whether it’s by region, product line, or distributor, you get the full picture—and that means you can act faster and smarter. 

Sales teams benefit too. With direct access to active promotions via mobile or web, they’re always aligned with what’s being offered. That means fewer mismatches at the outlet level and better on-ground execution. 

In short, a DMS turns trade promotions into a strategic tool—not just an expense on your sales ledger. 

Example 

Suppose you’re launching a ‘Buy 10 Get 2 Free’ scheme across Gujarat and Maharashtra. Through Distribution Management Software, you can restrict visibility to distributors in just those two states. As sales start flowing in, you’ll see real-time redemption numbers. If Gujarat underperforms, you can tweak the offer mid-month without starting from scratch. Distributors can raise claims directly through the portal, attach invoices, and get faster settlements. No manual Excel sheets involved! 

Why It Matters 

Without TPM, your promotions become guesswork. You rely on sales teams to “push” offers without knowing what’s working. With DMS software, TPM becomes data-driven. You don’t just launch offers—you learn from them, adjust in real time, and scale only what works. 

For companies managing large distributor networks, this is not a nice-to-have. It’s a must. 

In Summary 

Trade Promotion Management isn’t just about giving discounts. It’s about having the right plan, launching it at the right time, and knowing exactly how it’s working. If you want to grow your distribution seriously, your promotions need to be clear, well-managed, and easy to track. 

Nural DMS helps you do exactly that. 

Ready to bring clarity to your trade promotions? It’s time to stop guessing and start managing. Schedule your demo today!