ABC Analysis - A Method for Evaluating Products by Profitability
ABC analysis is a method of ranking products, suppliers, or customers based on their impact on profit. It is based on the Pareto principle: 20% of products generate 80% of the revenue. They are divided into three groups:
- A - the most valuable items (20% of the assortment generate approximately 80% of revenue);
- B - items of medium importance (30% generate about 15% of profit);
- C - the least profitable items (50% generate about 5% of profit).
It is used to optimize the product assortment and identify inefficient categories.
Marketing terms in simple language.
SMM Team marketer glossary.
Modern marketing evolves so fast that it's impossible to know all terms and abbreviations. And it's not necessary. We've collected in one glossary concepts from digital marketing, SMM, analytics, advertising, automation, as well as from related fields — design, content and production.
Use search if you know the exact spelling of a term, or choose the letter you need to quickly find the meaning. Each term is explained simply and clearly — so that not only a specialist, but also a beginner taking their first steps in marketing can understand.
The SMM Team glossary will help you navigate tools, metrics and processes that every marketer and SMM specialist encounters faster. Share the page with colleagues, team or students — together we'll make the marketing environment clearer and more accessible.