Glossary
The Glossary below provides clear definitions of key terms used in Revenue Growth Management (RGM), helping you better understand essential concepts, strategies, and metrics that drive top-line growth and optimize profitability. This resource is designed to simplify complex RGM terminology, empowering businesses to make informed decisions on pricing, promotions, and product assortments.
P
Particpation
The number of points of sale that typically run promotion and apply regular prices as planned
Pay for performance
A mechanism A mechanism where customers are conditional based paid trade terms for providing a specific 'ask' e.g. maintaining a full product range on shelf, or maintaining specific displays for a specified period etc.. the amount sold, as opposed to predetermining the trade spend to be paid
Point-of-sale
A mechanish available to a shopper to buy a product from, like an online store or a brick-and-mortar outlet
Post-promotion base incremental gain
The gain in base due to new shoppers and incremental lift due to promotional activity
Price elasticity
Price Elasticity expresses the percentage change in demand when reducing price by 1%
Price gap elasticity
The impact on demand of a product when the price gap to a competitor product change
Promoted price elasticity
The impact on demand when increasing the price of a product by 1% when on promotion
