Lack of integration both internally and with external partners can hinder trade promotion success. Key elements of organizational integration include standardized metrics, regular information sharing, cross-functional department collaboration, and collaborative processes. Integration with retail partners is important to executing promotions successfully, as well as maintain strong relationships with retailers over time. Lack of appropriate Key Performance Indicators (KPI) KPIs tell manufacturers and retailers how trade promotions performed relative to their pre-determined objectives. A lack of understanding on what trade promotion data to measure and how to measure performance can hinder the overall process. Manufacturers and retailers will not know what made a promotion effective or ineffective unless they have predetermined data points to measure and analyze. Poor profitability resulting from cannibalization Measured promotion profitability often overstates profits because it fails to take into account cannibalization by the promoted product of other products. Sales of the promoted product may increase, but this may be partially offset by a decrease in sales of substitute products. References Promotion and marketing communications