pricing objectives


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pricing objectives

the general and specific aims which a firm sets for itself in establishing the PRICE of its products. Pricing objectives are closely tied in with a firm's MARKETING OBJECTIVES which in turn are closely related to the achievement of the firm's overall BUSINESS OBJECTIVES.

Unit price x quantity sold is a key determinant of the firm's revenues which together with its underlying cost structures will determine the amount of PROFIT earned by the firm. Pricing objectives may be expressed generally in terms of achieving higher profit returns or related, for example, to some specified targeted RATE OF RETURN ON CAPITAL EMPLOYED. More specifically, in the case of particular products the pricing objective may be to increase MARKET SHARE in existing markets, or to enter a new market. In addition, a firm may seek to achieve price stability so as to avoid excessive fluctuations in its PROFIT MARGINS and the administrative costs associated with changing prices (for example, reprinting price lists). See PRICING, PRICING METHODS, PRICING POLICY, MARKET PENETRATION PRICING.

References in periodicals archive ?
The transaction attracted strong interest from several high-quality Asian investors, enabling APICORP to meets its diversification, issue size and pricing objectives.
Pharmaceutical innovation is changing the pricing landscape forcing payers and companies to rethink their pricing objectives and methodologies.
We will be able to offer them the channels they need - either traditional auctions or online marketplaces - to achieve their time-to-market and pricing objectives," he added.
Ultimately my role is to ensure that all purchases meet our brand standards and satisfy our pricing objectives.
Entering the second quarter we completed the implementation of a systematic customer-by-customer profitability analysis to more effectively target pricing and we adopted sales commission structures to drive implementation," said CEO John Casella, adding that these steps are expected to improve solid waste pricing to get back on track to meet fiscal year pricing objectives.
The conventional (Great Food) units had substantially improved but were not yet hitting their pricing objectives.
Our highly skilled workforce will assist you in meeting your delivery and pricing objectives.
But it gave a cautious view of growth prospects this year, admitting to finding the current trading environment in manufacturing challenging, with rising commodity and energy prices and demanding consumer pricing objectives.
Waiting for the market to come to your pricing objectives usually is fatal.
The study concluded that not all vendors were in agreement with rankings in pricing and selling objectives and that the ordering of selling and pricing objectives varied according to marketing agents.
Within this environment, therefore, most companies have undergone significant change and it is a major concern of this study to identify the extent to which pricing objectives have changed, if any, compared with previous studies.