Revenue management

Revenue management is the strategic practice of optimizing income generation. It involves setting prices, creating discounts, and employing various models to maximize overall revenue. It's a dynamic process that adapts to market trends and customer behaviors.

Example: A software company might adjust its pricing strategies. The company engages in revenue management by actively monitoring and analyzing various factors, such as market conditions, competitors' pricing strategies, and customer input. They are using this information to make informed decisions about how to price their product in a way that maximizes their overall revenue. This demonstrates a strategic approach to income generation, which is at the core of revenue management.