Presented to sir khalid

Made by Sobia & Anna

Definition
Definition
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 returns
A 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 profit
A 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 hut
3-Pizza next
4-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 increase
Most industries today are not growing
much if t all and have excess production 90

capacity. Many firms need added and to 80

utilize their production capacity more

70

60

fully and, in turn, gain economics of scale 50 E ast

and better profits

40 W est
N o rth
30

20

10
0
1s t Q t r 2 n d Q tr 3 rd Q tr 4 th Q tr
• To stabilize oriented
Price 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 competent
Firm 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
Definition
profit 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

 Definition
In 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
• Definition
Some 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