Maximum profit is the objective of any business. It needs to plan different strategies to gain maximum profit in any business. Nowadays, “Revenue Management” is acclaimed as the most preferred and exercised strategy to optimized business profit. Though, initially it was noticed and accepted by hospitality industries only, today, it is implemented in advertising, designing architecture, telecommunications, car rental, mystery caller and many other business.
So, here your mind must have surrounded by many questions such as, what is revenue management and why day by day it has been highly implemented in every business.

Basically, revenue management is the discipline analytic, which is used to predict the behavior of consumer at micro-market level. This analytic is also used to optimize the product availability & cost in order to grow the revenue performance.

This business strategy helps to understand whether the right product has been sold to right customer at right time and at price or not ? Likewise, we can know about the customer's perception regarding particular product. Using data-driven tactics and strategy, revenue management can answer various business related queries such as what to sell, whom to sell, when and how much to sell. Revenue management uses data mining, operation research strategies, statistical and mathematical concept to precisely review customer's behavior in dynamically changing market. Unlike yield management, revenue management increases revenue by encompassing wide range of opportunities in business. There are basically different categories, which sometimes called as series of levers, of which one or two can be used as per the situation to drive the revenue.

The primary levers to increase revenue are pricing, inventory, marketing and channels. A successful pricing strategy and disciplined pricing tactics can drastically improve the profit of any firm. The main objective of pricing strategy is to anticipate which value the consumer would find the particular product worth at, and to capture that value by setting specific prices. At the inventory level, the main concern of revenue management is to accurately price the product to increase the demands which leads to increase the revenue. Another level is marketing, in this the customer response for particular product is measured in its promotions. It helps to gain balance between volume of products and its profit. The last but not the list is to manage revenue through channels. It involves generating revenues through various distribution channels. As various channels have different costs & margins for products, customer is represented with price sensitivities.

All these levers of revenue management are extremely helpful for company to face the challenges of supply, production, demands. Hence, its effective use can give marvelous strategic turns to any business.

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