OBJECTIVES OF PRICING

SUBMITTED BY,AMEY LIMAYE (067)

ANN USHUS MATHEW (068)ANZA THASNEEM N (069)

ANURAG SAI (070)AYUSH KHARE (071)

BALAKRISHNA CHAITHANYA (072)

1

2

WHAT ARE PRICING OBJECTIVES

Pricing objectives are the overall goals that describe the role of price in an organization

Act as guidelines to develop marketing strategies.

Thus Pricing objectives or goals give direction to the whole pricing process

3

PRICING OBJECTIVE CONSIDERATIONS

The overall financial, marketing, and strategic objectives of the company;

The objectives of your product or brand Consumer price elasticity and price points The resources available.

4

PRICING OBJECTIVES• Profits-related

Objectives• Sales-related

Objectives• Competition-related

Objectives• Customer-related

Objectives• Other Objectives

5

PROFITS-RELATED OBJECTIVES

With reference to price, following profit-related objectives may be prioritized:

Maximum Current Profit : This objective is aimed at making as much money as possible.

Target Return on Investment : Company sets its pricing policies and strategies in a way that sales revenue ultimately yields average return on total investment

6

MAXIMIZE CURRENT PROFIT

7

SALES-RELATED OBJECTIVES

With reference to price, following Sales-related objectives may be prioritized :

Sales Growth: Pricing decisions are taken in way that sales volume can be raised. Setting price, altering in price, and modifying pricing policies are targeted to improve sales.

Target Market Share: Pricing decisions are taken in such a manner that enables the company to achieve targeted market share. Market share is a specific volume of sales determined in light of total sales in an industry.

Increase in Market Share : When company assumes that its market share is below than expected, it can raise it by appropriate pricing; pricing is aimed at improving market share

8

SALES-RELATED OBJECTIVES

9

SALES-RELATED OBJECTIVES

10

COMPETITION-RELATED OBJECTIVESWith reference to price, following competition-

related objectives may be prioritized:

To Face Competition: Company sets and modifies its pricing policies so as to respond the competitors strongly

To Keep Competitors Away: A company keeps its price as low as possible to minimize profit attractiveness of products

To Achieve Quality Leadership by Pricing: Tries to create a positive image that company’s product is standard or superior to the one offered by competitors

11

TO FACE COMPETITION

12

TO FACE COMPETITION

13

TO FACE COMPETITION

14

TO FACE COMPETITION

15

TO KEEP COMPETITORS AWAY

16

TO KEEP COMPETITORS AWAY

17

TO ACHIEVE QUALITY LEADERSHIP

18

TO ACHIEVE QUALITY LEADERSHIP

19

TO ACHIEVE QUALITY

LEADERSHIP

20

TO ACHIEVE QUALITY

LEADERSHIP

21

TO ACHIEVE QUALITY

LEADERSHIP

22

TO ACHIEVE QUALITY

LEADERSHIP

23

CUSTOMER-RELATED OBJECTIVES

With reference to price, following customer-related objectives may be prioritized:

To Win Confidence of Customers: Company sets and practices its pricing policies to win the confidence of the target market.

To Satisfy Customers:. Company sets, adjusts, and readjusts its pricing to satisfy its target customers. In short, a company should design pricing in such a way that results into maximum consumer satisfaction.

24

CUSTOMER RELATED OBJECTIVES

25

OTHER OBJECTIVESMarket Penetration: This objective calls for charging the lowest possible price to win price-sensitive buyers.

Promoting a New Product: To promote a new product successfully, the company sets low price for its products in the initial stage to encourage for trial and repeat buying.

Maintaining Image and Reputation in the Market: Company, by charging reasonable price, stabilizing price, or keeping fixed price can create a good image and reputation in the mind of the target customers.

26

OTHER OBJECTIVES To Skim the Cream from the Market:

This objective concerns with skimming maximum profit in initial stage of product life cycle.

Price Stability: Company formulates pricing policies and strategies to eliminate seasonal and cyclical fluctuations. Stability in price has a good impression on the buyers.

Survival and Growth: Pricing policies are set in a way that company’s existence is not threatened.

27

28

29

Baahubali' Benefit Shows: Ticket Price Ranges from ₹4,000 to ₹8,000; Rajamouli Sets New Record

30

SURVIVAL AND GROWTH

32