CONTRIBUTION MARGIN ANALYSIS Definition

CONTRIBUTION MARGIN ANALYSIS is a technique used in brand marketing and product management to help a company decide what product(s) to add to its product portfolio. The manager asks what will happen to profits if a new product is added or an existing product is discontinued. Calculations take into account additional revenues, additional costs, effects on other products in the portfolio (referred to as cannibalization), and competitors reactions.

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BUSINESS PROCESS REENGINEERING (BPR) is the analysis and radical redesign of business processes using objective, quantitative methods and tools and management systems to accomplish change or performance improvement. Also called: Re-Engineering, Reengineering, Process Reengineering, Process Quality Management, BPR, Process Innovation, Process Improvement, and Business Process Engineering.

OFF-FRONT PAYMENT see UP-FRONT PAYMENT.

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