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Price Index: Definition, Calculation, and Function

December 12, 2023

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The Price Index is the metric that shows your price positioning in the market. We’ll talk about how observing the price index helps in improving sales, controlling the positioning of your brand, and finding loopholes to rise among competitors. More to that, we’ll learn how to measure it. If you’re ready, let’s dive in. What is the price index (PI)? For ecommerce businesses, price index refers to the metric that illustrates how your products, categories, or brands are positioned in…

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What Is Performance Marketing? Definition and Beginner’s Guide (2023)

December 3, 2023

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“Half the money I spend on advertising is wasted; the trouble is I don’t know which half.” When the legendary 19th-century merchant John Wanamaker said this, he captured the angst of generations of business owners. Marketing and advertising clearly work—but how, and to what extent? Performance marketing aims to solve this tension by focusing on the part of marketing that performs in a measurable way. The term, first introduced in the mid-1990s shortly after internet marketing, was a stroke of branding…

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Cost-Plus Pricing: Definition & How-to Guide

November 28, 2023

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As an online retailer, there are several pricing strategies you can adopt or combine. Cost-plus pricing is the most easy-to-apply strategy that can save you all the time on earth. But is it effective? By the end of this article, you’ll learn: How to implement cost-plus pricing with examples Whether it is an effective strategy for online retailers Advantages and disadvantages (in the FAQ section). What is cost-plus pricing? It’s a pricing strategy where a business calculates the costs of…

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Definition, Examples, and Formula (2023)

November 24, 2023

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Think about a glass of water and a tray of ice cubes. The water is fluid, ready to flow at a moment’s notice. The ice cubes, while still water, are frozen and will take time to melt. For businesses, current assets are like the glass of water. They are ready to move and can be used to pay for the business’s immediate needs. Non-current assets are more like ice cubes: it takes time to access their value. Let’s dive into…

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What Is Barrier to Entry? Definition and Guide (2024)

November 17, 2023

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When starting a new business, or bringing a new product to market, there’s no shortage of factors that affect the odds of potential success. By understanding barriers to entry and how they impact the competitive landscape, new firms can put themselves in a stronger position to compete with existing firms in a given industry. New entrants in a market will always have an uphill battle to climb especially in the case of high start up costs. Fortunately, for many ecommerce…

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What Is Retail? Definition & Guide 2024

November 17, 2023

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Retail describes the sale of a product or service to an individual consumer for personal use. Retail transactions occur through different sales channels, such as online, in a brick-and-mortar storefront, in direct sales, or via mail. The defining feature of a retail transaction is that the end user is the buyer. Types of retail businesses There are about three million retail trade businesses in the United States. Retail is the largest employment sector in the country, with 9.8 million employees…

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What Is Direct Marketing? Definition, Examples, and Guide (2023)

November 16, 2023

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Direct marketing communicates information about a product or business to an individual customer without using a mass distribution channel. Direct marketing campaigns use email, social media, telemarketing, and in-person meetings to speak directly to consumers. Here is the full definition of direct marketing, how retailers use direct marketing to target individuals, and some examples of direct marketing in action. What is direct marketing? Direct marketing is a form of advertising that communicates a marketing message directly to a potential customer.…

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Definition and 6-Step Guide (2024)

November 16, 2023

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When old-timey prospectors headed for the mountains, they searched for nuggets of gold hidden at the bottom of creeks and inside dark caves. Modern sales teams might not physically search for gold, but they perform a similar process when looking for new customers. Prospecting in business is about finding value in lists of consumer data. Once identified, prospects are converted into sales opportunities through tailored email marketing, phone conversations, social media campaigns, and in-person pitches. The goal of prospecting is…

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What Is a Corporation? 2024 Definition and Types

November 5, 2023

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Corporations are businesses that are treated like individual people by the law. A corporation can own assets, hire employees, sign contracts, and exercise individual rights. In this post, learn the full definition of a corporation, including how corporations are formed and how they operate. What is a corporation? A corporation is a type of business that the law treats like a single person. This means a corporation can do things like buy a car, sign a deal with a supplier,…

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What Is an Enterprise? Definition and Example (2023)

October 28, 2023

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Enterprise is a term that has several definitions. Sometimes, the word “enterprise” is used to refer to any business, project, or initiative. Most often, however, a business described as an enterprise will have specific characteristics. Enterprises are typically large, complex organizations with various divisions and departments managed by a board of directors or an executive team. The term can also describe innovative entrepreneurial ventures. You might say that an entrepreneur is “enterprising.” What is an enterprise? An enterprise is a…

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