Trade Promotion Management: Ensure a Promotion Uses the Right Buying Pattern
- by Michael Debevec, President, Debevec Consulting, Inc.
- November 15, 2006
Learn how mySAP CRM Trade Promotion Management uses the data within buying patterns to distribute the predicted promotional volume. Then find out why the system might override a default buying pattern and what you can do to avoid this.
Trade Promotion Management (TPM) helps you plan and execute trade promotions. A part of Marketing Planning and Campaign Management within mySAP CRM, it works with Business Information Warehouse’s Business Planning and Simulation (BW-BPS), mySAP ERP Central Component (ECC) or R/3, and Advanced Planning and Optimization. With TPM, the key account manager (KAM) plans the trade spends offered to the customer for promoting the product. This translates into condition records and rebate agreements in R/3 or ECC. The KAM also plans the promotional volume expected as a result of these trade spends.
Imagine that you are a key account manager (KAM) planning promotional events with your customer. All of the customer’s promotional events start on a Sunday and run for three weeks. Depending on the reason for the promotional event, your customer may order most of the promotional product early and reserve the rest to cover potential stock-outs.
In other cases, your customer may elect to use its safety stock and then order the bulk of the product toward the end of the buying period to restock its warehouse. When you enter the promotional event in the system, you select the expected buying pattern, which adjusts the forecasted sales volume to reflect the expected customer behavior. Sometimes the system appears to ignore your selected buying pattern, leaving you to wonder, “Why was my buying pattern not used in this trade promotion?”
Here’s what you need to know about buying patterns in Trade Promotion Management (TPM), including how they work and how to calculate the buying pattern distribution to ensure that the system uses the appropriate one. This information is not found in either online help or in the IMG documentation.
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