New Optimiztions - Demand, Supply & Enterprise Optimization  

Profit Optimization Strategies Inc. has introduced the concept of introduced Technical Revenue Marketingsm (TRM).

Steve Pinchuk has a patent pending (or many patents pending depending on the final decision of  the US Patent and Trade Mark office on his filed patent) on TRM, Total Demand OptimizationSM, Total Supply OptimizationSM and Total Enterprise OptimizationSM approaches that are based upon new customer centric dynamic pricing model.

For years RM has been said to not create demand but to only optimize the existing demand. I am a RM and Total Demand OptimizationTM expert who has also been responsible for implementing RM and/or Total Demand OptimizationTM in global powerhouses like Harrah’s, Princess Cruises, Club Med and others, and not just a consultant who has only told others what to theoretically do. I realized that while this is good, it is not the best that we can do. Harrah's had the mindset and underlying systems to embrace this approach, but did not fully pursue, develop or implement this process.

·         POS has combined RM with marketing, pricing & distribution expertise to create Total Demand OptimizationSM, which can lead to Total Demand OptimizationSM which is a proactive formal and systematic marketing, pricing, CRM, distribution and product development tool. Total Demand OptimizationSM optimizes all the actions that effect the demand curve for a company through one smart rules based interface. Now we do not have to just use RM, which is a reactive tool, to optimize profits. Now RM can work with TRM, to create Total Demand OptimizationSM.

·         That can work with Total Supply OptimizationSM, Total Supply OptimizationSM optimizes all the actions that effect the supply curve for a company through one smart rules based interface.

·         Total Demand OptimizationSM can be combined with Total Supply OptimizationSM to create Total Enterprise OptimizationSM, to influence both the supply and demand curves BEFORE they are formed, through one smart rules based interface, instead of taking and optimizing the demand and supply that would have occurred without optimization of both curves. Once this is implemented as demand is optimized, supply will need to re-optimize or visa versa - however this will be tracked and managed through an integrated rules based system using predicative analytics.

It is easier to target what you want if you are shooting with a scope instead of waving around and firing a shotgun. Total Demand OptimizationSM is the scope for your marketing, pricing and loyalty actions.

Total Demand OptimizationSM is about marketing smarter instead of harder and learning to work with the markets instead of against them. Total Demand OptimizationSM is a proactive marketing technique, which uses data from many parts of a company to assure the right markets are being targeted at the right times. Targeted, surgical marketing that makes the most of this data, and uses that data to market smarter instead of harder.

Why use old marketing techniques, segmentation and pricing structures on markets that change rapidly? Why not learn how the market is changing use detailed data? Why try to get a market to buy at a time it historically is dead? Why not look for markets that are in the time frame where they normally buy and market to these people? Why stimulate more demand than needed and annoy your clients with denials? Why not understand what is needed before choosing your hunting weapon? A broad shotgun blast marketing approach usually only works when prices are dropped and dilution of revenues is allowed.

RM and Total Demand OptimizationSM rely on suppliers using the right prices and price theory. If a supplier uses the right prices, the best price strategies and the marketing tools, and then applies RM - the market will yield the highest possible price points as available sales options. Total Demand OptimizationSM theories and tools allow the supplier to generate the most profitable price points and then uses RM to reject the lower paying price points that came along without being incented. Total Demand OptimizationSM ties this all together into an integrated system.

To properly apply Total Demand OptimizationSM requires a fundamental change in the RM and Marketing corporate organizational structures. A new hybrid organization is needed that combines the RM strategies and analysis resources and the market analysis and planning functions into one new seamless profit identifying and development team. RM and marketing daily operations groups can still exist outside of the new RM and Total Demand OptimizationSM strategies group, in order to handle the day-to-day tasks required to implement the vision of the new hybrid RM and Total Demand OptimizationSM   group. Business must change the way it does business to fully utilize the power of Total Demand OptimizationSM.

 

 

Customer Centric Profit OptimizationSM, Total Demand OptimizationSM, Total Supply OptimizationSM and Total Enterprise OptimizationSM are all patent pending. These 4 concepts and their definitions, whether "optimization" is spelled with a "z" or a "s", are the patent pending and service marked intellectual property of Profit Optimization StrategiesSM.

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