What is volume decomposition in SAP CRM-MKT-MPL-TPO - SAP Trade Promotion Optimization?

SAP Term: volume decomposition

• Component: CRM-MKT-MPL-TPO

• Component Name: SAP Trade Promotion Optimization

• Description: Decomposition of sales volume into its demand components, for example, baseline, incremental uplift, feature, display, cannibalization, and so on.

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• Key Concepts: 
  Volume Decomposition is a feature of SAP Trade Promotion Optimization (CRM-MKT-MPL-TPO) that allows users to break down sales volume into its component parts. This feature enables users to analyze the impact of different factors on sales volume, such as promotions, pricing, and product mix. It also allows users to identify opportunities for improvement and optimize their promotional strategies. 
  
  How to use it: 
  To use Volume Decomposition, users must first define the factors they want to analyze. These factors can include promotions, pricing, product mix, and other variables. Once the factors have been defined, users can then use the Volume Decomposition feature to break down sales volume into its component parts. This will allow users to identify opportunities for improvement and optimize their promotional strategies. 
  
  Tips & Tricks: 
  When using Volume Decomposition, it is important to remember that the results are only as accurate as the data used. Therefore, it is important to ensure that the data used is accurate and up-to-date. Additionally, it is important to remember that Volume Decomposition is only one tool for analyzing sales volume; other tools such as regression analysis may be more appropriate in certain situations. 
  
  Related Information: 
  For more information on Volume Decomposition and other features of SAP Trade Promotion Optimization (CRM-MKT-MPL-TPO), please refer to the official SAP documentation or contact your local SAP representative.