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DefinitioDefinitionn

DefinitioDefinitionn

pricing objectives should flow from and be consistent with corporate and marketing objectives and the overall company mission These objectives should be started explicitly because they directly affect pricing polices and the methods used to be set )

• To achieve a target returnsA target return objectives set a special level of profit, usually

sated as a percentage of sales is capital investment e.g. 1-may price to earn a net .2-profit of 1% on a store’s sales. A chair of men’s

clothing store may behave target profit of 6% of sales

• To maximize profitA profit maximization objective seek to achieve as much

profit as posible.It might be stated as desire to earn a high return an investment or more sonly to change “what the method will bear”e.g

1-Pizza expert 2-Pizza hut3-Pizza next4-Mcdonald

• To increase sales volume

• This pricing goal of increasing sales volume .The pricing goal may be to increase volume or to maintain or increase the firm's market share.

To maintain or increaseMost industries today are not growing much if t all and have excess production capacity. Many firms need added and to utilize their production capacity more fully and, in turn, gain economics of scale and better profits

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• To stabilize orientedPrice stabilized often is the goal in industries where 1-the product is highly standardized (such as steel or bulk

chemicals.2-One large firm. Such as Phelps Dogs in the copper industry.Historically has acted as a leader in setting their prices.

• To meet competentFirm that adopt status quo pricing goals to avoid price competition

are not necessarily passive in their marketing .Quite the contrary! Typically these companies compete aggressively using other marketing-mix elements-product. distribution and especially protion.This approach called nonprime competition

Definitionprofit goals may be set for the short or long term .Accompany may select one of two profit –oriented goals for its pricing policy

A firm may price its produce to achieve a target return-a specified percentage return

on its sales or on its investment. Many retailers and wholesalers use a target

return on sales as a pricing objective for short periods such as year or a fashion

season e.g. Boutique

The pricing objective of marking as much as money as possible is probably followed more then any other goal. The trouble with this goal is that

some people profit maximization has an ugly connotation suggesting profiteering, high prices

and monopoly

e.g. Pizza hut

DefinitionIn some companies management’s pricing is focused on sales volume. The pricing goal may be to increase

sales volume or to maintain or increase the firm's market share

•DefinitionSome managers are more

concerned with sales growth than profitability delivering this will lead to increased profits sales growth object are those sought by marketers wanting to set prices so that values volume increase.

e.g. clothing stores run end of season sales such golf courses and resorts reduce price during off-seasons to increase sale volume

• Many organization seek to gain same specific share % of a market .The advantage of a market-share price object is that its force a managers to pay attention to the performance of the competitions. it is usually easier to measure an argumentation market share than to determine if profit are buying maximized since market share is a relation measure it is often the preferred measurement of an argument competitive

• e.g. McDonald, Coca-Cola