RGM Institute

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.

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T
T&C
Terms & Conditions
TA
Theory of Constraints Throughput Accounting
TAM
Total Available Market
TAX
VAT or GST percent
TCVR
Inventory Cover in Trade
Temporary price reduction
A promotion in which a primary mechanic is a drop in price
TOC
Theory of Constraints
TOCLSS
A blended approach to the Theory of Constraints, Lean, and Six Sigma
TP
Theory of Constraints Thinking Process
TPM
See "Trade Promotions Management"
TPO
See "Trade Promotions Optimization"
TPR
See Temporary Price Reduction
TPR Depth
See "Price depth"
TPRC
Promotion Count
TPRD
Promotion Depth
TPRF
Promotion Frequency
TPRP
Proportion of demand promoted
Trade investment
The money paid to customers to fund activity
Trade investment elasticity
The impact on demand when investing 1% more in the customer
Trade Promotions Management
The discipline through which manufacturers adminstrate trade investment initiatives
Trade Promotions Optimization
The discipline through which the money invested in customers return the most money to the manufacturee
Trade spend
See "Trade investment"
TT
Trade Terms
TTS
Trading Term Spend
TUS
Typical Unit Sales
TY
This year

As a learning organization itself, the Revenue Growth Management Institute enables and builds RGM capability for the world’s leading brands.

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