List and explain a variety of pricing objectives

Assignment Help Business Management

Reference no: EM131267271

List and explain a variety of pricing objectives. Establishing realistic and measurable pricing objectives is a critical part of any firm's marketing strategy. Pricing objectives are commonly classified into three categories: profit oriented, sales oriented, and status quo. Profit-oriented pricing is based on profit maximization, a satisfactory level of profit, or a target return on investment. The goal of profit maximization is to generate as much revenue as possible in relation to cost.

Often, a more practical approach than profit maximization is setting prices to produce profits that will satisfy management and stockholders. The most common profit-oriented strategy is pricing for a specific return on investment relative to a firm's assets. The second type of pricing objective is sales oriented, and it focuses on either maintaining a percentage share of the market or maximizing dollar or unit sales. The third type of pricing objective aims to maintain the status quo by matching competitors' prices.

1. Give an example of each major type of pricing objective.

2. Why do many firms not maximize profits?

Reference no: EM131267271

Questions Cloud

What the job would involve on a day-to-day basis : Blog discusses the cost control of recruiting and the different ways to recruit or advertise to employees. Provides several different recommendations for recruiting, and explains the costs associated with each method.

List and explain some of the pros and cons of the law : List and explain some of pros and cons of the law. How does ethics play a role in the law? Who is mostly impacted by the law? Find at least one additional article in the CSU Online Library related to your disappearing future.

Determine the company resources and capabilities : Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Determine the company's res..

Calculate the starting torque when rated voltage is applied : A squirrel-cage induction motor is rated 25 kW, 440 V, 3-phase, 50 Hz. On full-load it draws 28.7 kW with line current 50 A and runs at 720 rpm

List and explain a variety of pricing objectives : List and explain a variety of pricing objectives. - Give an example of each major type of pricing objective.- Why do many firms not maximize profits?

Individual-applying risk management consulting : You have been hired as a consultant and asked to provide a presentation on the company's risk management to the CIO.

Describe the business ethics issues and definitions : Analyze two (2) of the legal mandates that workers and U.S. government has accused Walmart of violating. Provide an explanation as to why these legal mandates were violated, citing specific violations.

What role does effective interpersonal communication play : What role does effective interpersonal communication play in decision making within organizations

What is negotiation : What is negotiation? What are the common negotiation pitfalls? What are the strategies to overcome them.

User Account

All Pages