What is 'cost per incremental unit' in SAP CRM-MKT-MPL-TPO - SAP Trade Promotion Optimization?

cost per incremental unit - Overview

• Component: CRM-MKT-MPL-TPO

• Component Name: SAP Trade Promotion Optimization

• Description: Cost incurred to sell an additional unit.

cost per incremental unit - Details

• 
  Key Concepts: 
  Cost per incremental unit is a metric used in SAP Trade Promotion Optimization (CRM-MKT-MPL-TPO) to measure the cost of a promotion relative to the incremental sales it generates. It is calculated by dividing the total cost of the promotion by the incremental sales generated by the promotion. 
  
  How to use it: 
  To calculate cost per incremental unit, first determine the total cost of the promotion. This includes any discounts, rebates, or other incentives offered as part of the promotion. Then, calculate the incremental sales generated by the promotion. This is the difference between the sales before and after the promotion. Finally, divide the total cost of the promotion by the incremental sales generated to get your cost per incremental unit. 
  
  Tips & Tricks: 
  When calculating cost per incremental unit, it is important to consider all costs associated with a promotion, including any discounts or rebates offered as part of it. Additionally, it is important to consider any external factors that may have impacted sales before and after a promotion, such as changes in market conditions or competitor activity. 
  
  Related Information: 
  For more information on SAP Trade Promotion Optimization (CRM-MKT-MPL-TPO), please visit https://www.sap.com/products/trade-promotion-optimization.html. Additionally, for more information on cost per incremental unit and other metrics used in trade promotion optimization, please visit https://www.sap.com/documents/2018/09/f9f3d7a2-e8b3-0010-82c7-eda71af511fa.html.