Profit Oriented Pricing Objective: - Profit Maximization - Satisfactory Points - Target Return on Investment. Chapter 17 - Pricing Objectives and Policies 136. A company has several pricing objectives from which to choose, and the objective chosen will depend on the goals and type of product sold by a company. Status Quo: answered Sep 15, 2015 by Fatboyslim. The four types of pricing objectives include profit-oriented pricing, competitor-based pricing, market penetration and skimming. The skim pricing strategy should be reserved for when your pricing objective is profit maximization, revenue maximization, or profit margin maximization. Give an example of each major type of pricing objective. Earning a targeted ROI means that the company aims to earn back all of its original investment plus a percentage of the principal amount, and maximizing profits is all about cutting costs and increasing customer loyalty. Anything less will ensure failure. The overall financial, marketing, and strategic objectives of the company. This problem has been solved! Determining what your objectives are is the first step in pricing. Pricing Objectives: Profit - managing for long-run profits: companies give up immediate profit by developing quality products to penetrate competitive markets over the long term - maximizing current profits: common in many firms where they just look to make money in the short term (p. 455,457) Regarding pricing objectives, a good marketing manager knows that: A. sales-oriented objectives usually lead to high profits. Expert Answer 100% (1 rating) Previous question Next question Profit: Survival is closely linked to profitability. Making a USD 500,000 profit during the next year might be a pricing objective for a firm. Sales Oriented: - Market Share - Sales Maximization. Some examples of different pricing objectives companies may set include profit-oriented objectives, sales-oriented objectives, and status quo objectives. The objectives … 0 votes. Pricing Objectives are the goals and standards that companies consciously require to set prices for the products they produce or operate. B. target return objectives usually lead to a large profit. Pricing objectives that are profit-oriented include earning a targeted return on investment and maximizing profits. Pricing objectives are goals that define what a business plans to achieve with pricing strategy. Profit-Oriented Pricing. Earning a Targeted Return on Investment (ROI) ROI, or return on investment, is the amount of profit an organization hopes to make given the amount of assets, or money, it has tied up in a product. Question: QUESTION 36 Profit-oriented Pricing Objectives Include Target Return On Investment Target Market Share Meeting Competitors' Prices Status Quo Pricing. Pricing objectives or goals give direction to the whole pricing process. This influences pricing as sales managers may be given leverage to set discounts based on factors such as negotiations and the size of … 2. When deciding on pricing objectives, you must consider: 1. Show transcribed image text. The four most commonly adopted pricing objectives are (1) competitive, (2) prestige, (3) profitability, and (4) volume pricing. Awesome job my friend Welcome to Sciemce, where you can ask questions and receive answers from other members of the community. Profit-oriented pricing objectives include profit maximization, satisfactory profits, and target return on investment. C. status quo pricing objectives can be part of an extremely aggressive marketing strategy. It guides the business Obtaining profits is the ultimate goal of enterprises engaged in production and operation activities, which can be achieved through product pricing. 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