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Spreadsheets are the least effective tool on the market for managing trade promotions. So when an FMCG company finally decides to automate the process, it often faces a dilemma framed as TPM vs TPO:

Should it choose a comprehensive, multifunctional platform that requires greater process maturity?
Or opt for a simpler solution that’s easier to implement but limited in capabilities?

At this crossroads, many brands hesitate, believing they must choose one over the other.

In reality, TPM and TPO solutions are not competitors — they represent consecutive stages in the same journey toward a more profitable and structured trade promotion process.

In this article, we’ll explain what TPM and TPO solutions actually do, how companies typically evolve from one to the other, and what adoption usually looks like in practice.

What Is Trade Promotion Management?

Trade Promotion Management is both a business process and the technology that supports it.

As a software solution, Trade Promotion Management (TPM) is a system designed to plan, approve, execute, monitor, and analyze promotional activities in a structured and transparent way.

Most brands begin with a familiar scenario: promotions are planned in spreadsheets, approvals are exchanged via email, financial figures differ between departments, and no one has full confidence in the actual ROI.

This is typically the turning point — when a company realizes it needs a dedicated TPM system. Once implemented, two critical changes happen simultaneously:

The promotion process becomes structured and standardized.

The technology supports and enforces every step of that structure.

Core TPM Components and How They Transform Promotion Management

The market offers a variety of TPM solutions, many of which can be customized to meet specific business needs. However, there are established industry standards that define what a mature TPM setup should include.

A well-designed TPM system transforms trade promotion management from fragmented coordination into a centralized, data-driven process — enabling better planning, clearer accountability, and more reliable performance measurement across the organization.