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Overview:

In many firms, Revenue Management (RM), pricing, customer relationship management, and distribution channel management are still a chain of separate departments with separate rulers, and in many cases separate goals measured on separate databases, analytical processes, and skill sets. Centralizing and integrating these functions to create a Profit Optimization department, using RM and pricing theories and tools, will allow firms to move away from traditional revenue management and towards Total Demand Profit Optimization. Under this umbrella, rather than simply managing existing demand, firms can create and direct demand by incorporating the demand generating capability and cost structure of customers and channels into the revenue management decision.

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Format:PDFSize:112 KB
Date:Feb 2009
Pages:5

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