Dictionary of Business Terms: milking strategy
milking strategy
short-range marketing strategy planned to take the largest possible profit from an item in the shortest amount of time without regard to the item's long-range possibilities for sales.
Dictionary of Marketing Terms: milking strategy
milking strategy
short-range marketing strategy planned to take the largest possible profit from an item in the shortest amount of time without regard to the item's long-range possibilities for sales. Milking strategies are adopted when budgets are low and the need for funds in other operational areas, such as research and development, is great. The idea behind a milking strategy is to use the profits from one item to develop other products that are believed to have greater profit potential.
