6568836 marketing pricing objectives

8/14/2019 6568836 Marketing Pricing Objectives

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Presented to sir khalidPresented to sir khalid

Made by Sobia & AnnaMade by Sobia & Anna


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DefinitionDefinitionDefi

nitionDefinitionpricing 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 )


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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 stores sales. A chair of mens 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 aninvestment or more sonly to change what the method willbeare.g

1-Pizza expert2-Pizza hut3-Pizza next4-Mcdonald


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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 increase

Most industries today are not growingmuch if t all and have excess productioncapacity. Many firms need added and to

utilize their production capacity morefully and, in turn, gain economics of scaleand better profits

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To stabilize orientedPrice stabilized often is the goal in industries where1-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 thesecompanies compete aggressively using other marketing-mix elements-product.distribution and especially protion.This approach called nonprime competition


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Definitionprofit goals may be set for the short or long

term .Accompany may select one of two profitoriented goals for its pricing policy


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

on its sales or on its investment. Manyretailers and wholesalers use a target returnon sales as a pricing objective for shortperiods such as year or a fashion season

e.g. Boutique


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The pricing objective of marking as much as money aspossible is probably followed more then any other goal.

The trouble with this goal is that some people profitmaximization has an ugly connotation suggestingprofiteering, high prices and monopoly

e.g. Pizza hut


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DefinitionIn some companies managements

pricing is focused on sales volume. Thepricing goal may be to increase salesvolume or to maintain or increase the

firm's market share


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DefinitionSome managers are more concerned

with sales growth than profitabilitydelivering this will lead to

increased profits sales growthobject are those sought bymarketers wanting to set prices sothat values volume increase.

e.g. clothing stores run end of seasonsales such golf courses and resortsreduce price during off-seasons toincrease sale volume


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Many organization seek to gain same specificshare % of a market .The advantage of a market-share price object is that its force a managers topay attention to the performance of the

competitions. it is usually easier to measure anargumentation market share than to determine ifprofit are buying maximized since market share isa relation measure it is often the preferredmeasurement of an argument competitive

e.g. McDonald, Coca-Cola


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6568836 marketing pricing objectives

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