Professional Documents
Culture Documents
• 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
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
• 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