Vendavo Glossar

Artificial intelligence seeks to copy the skills and abilities of a human mind, using computers. Learn how it helps optimize your business operations.

Bundle pricing is the act of putting a number of products together to create a bundle of items, then selling that bundle at a price that’s lower than the cost of purchasing the items individually.

Channel incentives are powerful tools for businesses aiming to strengthen relationships with their partners, encouraging them to sell products faster and motivating them to improve their product knowledge and engage in behaviors that help grow the business.

Channel management refers to the process a company uses to determine the best marketing techniques and sales strategies to market a B2B sales organization’s products and solutions to end customers. 

Channel pricing is the utilization of your various routes to market, or channels, in pricing decisions. Internal costs and competitive factors must also be considered.

Commercial excellence is the set of business processes that should occur between engaging with the market to make your offer all the way through reaching a commercial agreement with a prospect, partner, or current customer.

Commercial transformation is the business process of making fundamental organizational changes to marketing, sales, and pricing capabilities to provide actionable strategy and focus that drives revenues, increases margin, and grows your business. 

Configure Price Quote (CPQ) software simplifies the process of generating customer quotes and makes them more effective.

Cost based pricing can be defined as the practice of determining prices based entirely on the cost of the goods and services being sold, rather than any other influential factors. 

Customer profitability analysis is a method widely used by companies hoping to gain a better understanding of how much revenue each customer, or group of customers, generates.  It enables a business to understand the true value of its customers, through careful evaluation of their profitability. 

Deal management is the process of defining specific deal parameters and using them to negotiate and secure deals.

Through historical trends and business guidance you can assign the right price for your products, segments, and deals at the right time. Sales reps can review and use the target, stretch, and floor recommendations. 

The ability to use historical sales data, Artificial intelligence (AI), machine learning (ML), and business expertise to produce the most effective pricing based on segmentation and discounts to enable sales teams with improved prices and negotiations. 

Discount management is critical to a business’s pricing and revenue optimization strategies, particularly those operating in the B2B space.

Dynamic pricing means that the price of a product will change according to changes in market demand and other criteria. Calculating the optimal price can be complex, but software is available that can take into account numerous factors and make the calculation seamless.

Learn what defines dynamic pricing optimization, a concept that combines the two distinct principles of dynamic pricing and pricing optimization.

The term ERP refers to enterprise resource planning. This is a process widely used by companies in a number of different industries, to manage and integrate different parts of the business. 

ERP stands for ​​enterprise resource planning. When we talk about ERP, we’re referring to ERP systems designed to handle a number of different business processes. 

The use of sales channels continues to grow, and that makes it important to learn the ins and outs of the channel management process. Here’s what channel management is, and explains the type of channels, strategies, and use cases that are needed to make the channel management process as effective as possible.

Guided selling gives buyers a helping hand as they navigate the buying process. It provides all the information and advice buyers need to help them make the right decision.

Introductory pricing is when companies launch a product or service at a lower-than-usual price to catch customers’ attention and make a splash in the market.

Learn about manufacturer rebates: how they work, their benefits, and challenges. Essential info for businesses.

Margin leakage is a decline in the profit margin occurring as a result of various factors particularly related to offering different types of incentives and promotions.

Margin management measures and increases a customer’s expansion over time. All the processes and tools that come under the umbrella term should be aimed towards long-term, sustainable profit growth.

Market development funds (MDF) are a strategic allocation of resources provided by vendors to their channel partners, with the primary aim of bolstering sales and marketing efforts.

Market pricing is a strategy used to set prices according to current prices in the market for the same or similar products or services.

Penetration pricing is a marketing strategy whereby an organization sets a low price for its product or service to rapidly gain a significant market share.

Predictive sales analytics uses algorithms, patterns in historical data, and machine learning to anticipate future outcomes as they relate to sales.

A price quote is a formal document that outlines the exact cost of products or services, including specific terms and conditions of sale. 

This analytical software is often used to help companies gain a more thorough understanding of how profitability differs for a range of different pricing options and how far pricing optimization could improve the potential profitability of products and services.

Pricing efficiency is the assumption that a price is reflective of everyone in the market being in possession of all available information. It is also using smart process decisions to minimize the inefficiencies that are cutting into profits.

A pricing engine is an advanced software solution that automates and optimizes the process of generating and maintaining pricing strategies.

Pricing intelligence is defined as the process of gathering, analyzing, and leveraging data on pricing strategies across the market. It involves understanding competitive pricing, market trends, and customer behavior to optimize pricing strategies for informed business decisions.

Pricing margin – or profit margin – is the difference between the cost of an item and the price at which it is sold.

Pricing software is a commercially available software application that automates pricing analytics, optimizes prices, and executes pricing changes to help organizations make more efficient and effective pricing decisions.

Quote-to-Cash (Q2C) is a comprehensive business process encompassing the entire customer lifecycle, from initial quote generation to final payment collection.

Get the full picture of rebate management, its meaning, and its role in business profitability.

Rebate marketing is a strategic promotional tool that businesses deploy to incentivize purchases by offering consumers a partial refund or discount after they’ve bought an item.

Rebate processing is the set of procedures employed throughout the execution of a rebate program, effectively fulfilling the terms of promotional offers and providing both vendors and customers with incentives.

What is a rebate and how can it benefit you? Explore the definition of rebates, their various forms, and how they function in both B2B and B2C contexts.

The definition of revenue optimization can be simplified into achieving two key objectives: sell more and sell more profitably.

Sales enablement is a strategy aimed at improving the productivity of a sales team, and therefore boosting profitability for a company.

At its core, sales intelligence takes raw data and turns it into real, actionable insights that can help you spot high-value prospects, understand your customers on a deeper level, and connect with leads more effectively.

Sales optimization is a set of initiatives or actions taken to improve the sales process.

Shipping rebates are a strategic financial tool primarily used within B2B logistics to incentivize and reward partnering businesses for their loyalty, volume, and efficiency in shipping operations.

Value-based pricing is a pricing strategy where the price of a product or service is determined primarily by the perceived value it provides to the customer.

A vendor is an individual or business that supplies goods or services to other companies or consumers. In a B2B context, vendors play a vital role in the supply chain by providing essential products, components, or services that enable other companies to operate and grow.

Vendor rebates are financial incentives provided by suppliers to their business customers as rewards for reaching specific purchasing targets or complying with agreed-upon terms.

Volume discounting is a pricing method that essentially rewards customers if they purchase more of a product or service, essentially incentivizing a higher purchase volume.