What's it: Revenue management is the adoption of a data-driven approach for predicting consumer behavior to maximize revenue. Companies use sophisticated computer systems to analyze consumer behavior, forecast demand, adjust inventory, and set
Marketing and Sales
Promotion in Marketing: Types, Affecting Factors
What's it: Promotion is a marketing effort to increase public awareness, stimulate people to buy, and increase sales. It may be for product, brand, or company itself.Promotion combines any communication between a business and a potential
Pricing Strategy: Types, Factors to Considering
What's it: Pricing strategy is companies' policy in setting the selling price of their products. Some firms may set prices with more consideration to the market (market-based pricing), while others consider cost-based pricing more.Pricing is
Advertising Budget: Types, Importance, Affecting Factors
What's it: An advertising budget is a money a company plans to spend on advertising over a period of time. The allocation decision considers various aspects, including the type of media, marketing budget, and production costs involved in
Market Challenger: Strategy, Good and Bad
What's it: A market challenger is a firm striving to increase its market share and replace the market leader. Usually, they are the second-largest dominant company in the market. They have sufficient resources and capabilities to aggressively
Value-Based Pricing: Meaning, How it Works, Pros and Cons
What's it: Value-based pricing is a pricing strategy in which a company considers the product's benefits to determine its price. From a company perspective, benefits are reflected in the value added to the product. Meanwhile, for consumers,
Market-Based Pricing: Types, Factors to Consider, Pros and Cons
What's it: Market-based pricing is a pricing strategy in which a company considers the market situation to set its price. In other words, the company focuses on customers (demand) and competitors.Compared with competitors, three options are
Loss Leader Pricing: Meaning, Pros and Cons
What's it: Loss leader pricing refers to a pricing strategy when a company aggressively discounts the price to stimulate sales. In fact, the company posted a loss for loss leader products when adopting this approach.Profits and overall
Cost-plus Pricing: Formulas, How to Calculate, Pros and Cons
What's it: Cost-plus pricing is a pricing strategy in which the company adds up the profit margin (markup) to the cost of making the product. This is the most basic and simplest method because it uses cost as the basis of calculation.Another term
Marginal Cost Pricing: How to Calculate, Advantages, Disadvantages
What's it: Marginal cost pricing refers to a pricing approach in which a firm charges a product according to its marginal cost. In this case, the company takes into account the variable costs per unit.How to calculate marginal-cost
Sampling: Meaning, Concepts and Methods
What's it: Sampling is the process of selecting a subset of the population to use for research. A population can be things or people. In this article, I am specifying this topic with market research.In market research, the
Penetration Pricing: Purpose, Importance, Pros and Cons
What's it: Penetration pricing is a pricing strategy by which a company charges a low price initially and slowly increases it over time. This strategy's main objective is to penetrate the market, that is, to get as many customers as possible and
Promotional pricing: Meaning, Types, Advantages, and Disadvantages
What's it: Promotional pricing is a pricing tactic to attract interest and increase short-term sales. Companies, especially those in the retail industry, usually adopt it to deplete warehouse stock or increase sales during peak
Demand-Oriented Pricing: Definition and How It Works
What's it: Demand-oriented pricing is a pricing strategy in which a firm adjusts its price to fluctuations in demand. This strategy is suitable for several cyclical or seasonal products. Usually, periods fall into two categories: peak periods
Premium Pricing: How It Works, Advantages And Disadvantages
What's it: Premium pricing is a pricing strategy in which a company offers high prices for its product quality. The keywords are of high price and quality.The company charges a high price to differentiate its products from the competitors'
Destroyer Pricing: Meaning, How it works, Purposes, Pros, Cons
What's it: Destroyer pricing is a low pricing strategy to drive competitors out of the market. After being expelled, the company can act as a monopolist in the market. Other terms for this strategy are undercutting and predatory pricing.The
Competitive Pricing: Types, How It Works, Advantages, and Disadvantages
What's it: Competitive pricing is a pricing strategy in which firms use competitors or industry averages as benchmarks for pricing. They may charge higher, close, or lower prices than the average competitor. So, companies' first task is to gather and
Cash Cow in the BCG Matrix [Summarized]
What's it: A cash cow is a product or business unit with a high market share in a low-growth market. In other words, a product is in a mature market and has a dominant position, perhaps as a market leader.It is one of four quadrants in the
Question Mark in the BCG matrix [Explained]
What's it: Question mark is a product or business unit with a low market share but in a high growth market. The product has an opportunity to increase market share and dominate the market.The question mark is one of the four categories of
Dogs in the BCG Matrix: Meaning, Implications to The Company
What's is: A dog is a product or business unit with a low market share and in a low-growth market. It is one of the four categories of the BCG matrix apart from the star, cash cow, and question mark.Well, I will briefly discuss the
Growth Stage of the Product Life Cycle: Meaning, Characteristics
What's it: The growth stage is the part of the business cycle in which the company begins to enjoy high sales volume growth. Consumer awareness has also increased, reducing the risk of rejection. They try to buy a new product and, when