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 ?
We were able to achieve our pricing objectives as well as funding diversification strategies in a competitive market for issuers.'
We were able to achieve our pricing objectives as well as funding diversification strategies in a competitive market for issuers." Abdul Wahed Al Fahim, chairman of Nasdaq Dubai, said: "SIB's listing adds further momentum to the successful initiative to position Dubai as the global capital of the Islamic Economy." Dubai is the leading global centre for sukuk listings by value, currently totalling $59.72 billion.
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.
Additionally, it presents an ideal opportunity to validate overall pricing objectives and market positioning.
"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.
Those derivatives-based hedges help the company lock in interest rates that support its pricing objectives. Although the program hasn't completely eliminated the interest rate risk, Zabel believes it definitely has mitigated a portion of that risk.
* Pricing objectives and their interpretation in the present conjuncture
To fund his venture, Mayes worked out a business plan that listed one-, three- and five-year pricing objectives. He took his plan to a possible investor and received enough funding to buy the equipment needed and launch the business.
The purpose of this study is to determine if small firms use established economic principles that economists rely on when explaining the behavior of large firms regarding pricing objectives and strategies.