Chapter_05 - Chapter 5 Revenue Strategy Copyright Atomic...

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Copyright Atomic Dog Publishing, 2006 Chapter 5 Revenue Strategy
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Copyright Atomic Dog Publishing, 2006 5-1 Introduction Revenue provides the fuel for the entrepreneurial venture’s growth. Entrepreneurs general understanding of how each component of the business contributes to revenue— revenue strategy. - Developing and executing a revenue strategy is about a venture’s products and services and about its target markets. - Revenue strategy is developed with input from various business activities, including marketing, sales, and customer service. - The venture must also develop credit and collections policies.
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Copyright Atomic Dog Publishing, 2006 Exhibit 5-1 The Five Components of Revenue Strategy
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Copyright Atomic Dog Publishing, 2006 5-2 What Is Revenue Strategy? Providing a valuable product or service to customers is the primary means by which businesses produce revenue. The entrepreneur has three rules for success: - Focus on the customer - Keep turnaround times short - Always give the customer what they want In most businesses, the CEO coordinates the interaction among marketing, sales, and customer service functions—functioning as the vice president of revenue. - Functional divisions and the communication and execution gaps that develop among them, are some of the major challenges that large organizations face.
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Copyright Atomic Dog Publishing, 2006 5-2 What Is Revenue Strategy? (cont.) - The entrepreneur must integrate the five components of revenue strategy into a coherent whole that focuses on delivering value to customers. Most large companies tend to gauge their success in terms of quarterly profit increases. Most traditional companies focus on profit improvement more than revenue growth. The entrepreneurial venture, most focus on revenue growth. Revenue growth in entrepreneurial companies is achieved through an intense focus on customers. Acquiring customers begins with the marketing message.
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Copyright Atomic Dog Publishing, 2006 Exhibit 5-2 Growth Curve and Investment Cycles
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Copyright Atomic Dog Publishing, 2006 5-2a Marketing Marketing varies widely, primarily because each venture must focus its marketing approach directly on its target customers and their buying habits. From the perspective of revenue strategy—develop sustainable competitive advantage (SCA). - By studying what competitors are offering to the market and attacking that market with a differentiated offering. -
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Chapter_05 - Chapter 5 Revenue Strategy Copyright Atomic...

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