Pricing objectives are overall goals that describe what the firm wants to achieve through its pricing objectives. Before setting prices, marketers should always begin by considering objectives, which are overall goals that describe the role of price in an organization’s long-range plans. Because pricing objectives affect decisions in other functional areas such as finance, accounting and production, the objectives must be consistent with marketing and organizational objectives.
Prices are set to meet both short term and long-term goals. Short-term goals relate to survival while long run pricing objectives derive directly from company objectives. They provide guidance to decision makers in determining price policies, formulating pricing strategies and setting actual price. Although the pricing objectives alone are not sufficient to identify the single best list price, they often help managers narrow the range of possible prices.
Most companies have profit as a main pricing objective, other objectives such as market share, competition,
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