MKTG 2030 Chapter 9: Marketing 2030 Chapter 9.docx
Document Summary
Profit objectives: maximizing profits, achieving a target level of profit growth, achieving a desired net profit margin, marginal analysis: a method that uses costs and demand to identify the price that will maximize profits. Sales or marketing share objectives: pricing products to maximize sales or to attain a desired level of sales or market share. Competitive effect objective: pricing that is intended to have an effect o the marketing efforts of competition. Customer satisfaction (and retention) objectives: pricing that is intended to maximize customer satisfaction and retention. Image enhancement objective: pricing intended to establish a desired image or positioning prospective customers. Pricing strategies to achieve profit objectives: cost based pricing strategies: Cost plus pricing: a method of setting prices in which the seller totals all the unit costs for the product and then adds the desired profit per unit. A price setting method based on estimates of demand at different products.