How to Invest in Promotional Marketing for Your Trade Marketing Actions

In challenging economic times, marketing investments become even more important for sustaining growth and protecting the business from recession. This is where promotional marketing stands out as a strategy that gains more relevance during these periods.

Want to learn more about how it works and how to invest in this approach?

How Does Promotional Marketing Work?

Promotional marketing is a broad category of marketing activities. Contrary to what many believe, it goes far beyond price-based promotions like coupons and discounts.

Promotional marketing aims above all to build customer loyalty by providing differentiated experiences. This can be achieved in multiple ways.

It encompasses product demonstrations, incentive marketing, corporate events, and more. These strategies are especially valuable during economic downturns, when reduced consumption increases the need to provide better consumer experiences to drive sales.

Another advantage is that these actions create a positive brand image in the consumer's mind.

How Much Should You Invest in Promotional Marketing?

To determine how much to invest, consider your company's overall marketing plan. Key factors include:

• Company size and revenue: larger companies typically allocate 5-10% of revenue to marketing, with a portion dedicated to promotional actions.
• Campaign objectives: product launches may require higher investment than maintenance campaigns.
• Competitive landscape: markets with aggressive competitors demand proportionally higher promotional spending.
• Channel mix: allocate budget based on which channels (in-store, digital, events) deliver the best ROI for your category.

Integrating Promotional Marketing with Trade Marketing

The most effective approach is integrating promotional marketing with your broader trade marketing strategy:

• At the point of sale: promotional actions like tastings, demonstrations, and gift-with-purchase campaigns drive immediate sales while reinforcing brand positioning.
• With retail partners: coordinate promotional calendars with key retailers to maximize visibility and negotiate better placement.
• Through field teams: well-trained field representatives are the execution backbone of any promotional campaign. Equip them with clear guidelines, materials, and reporting tools.

Measuring Promotional Marketing ROI

Every promotional investment should be measured against clear KPIs:

• Sales lift during and after the promotional period.
• Cost per customer acquisition or interaction.
• Brand awareness and perception changes.
• Retailer feedback and partnership value.

By treating promotional marketing as a strategic investment rather than a cost, and by measuring its impact rigorously, companies can maximize the return on every dollar spent at the point of sale.