Marketing Management - Pricing Decision

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Marketing Management - Pricing Decision

Pricing is a process to determine what manufactures receive in exchange of the product. Pricing depends on various factors like manufacturing cost, raw material cost, profit margin etc.

Objectives of Pricing
The main objectives of pricing can be learnt from the following points −

#Maximization of profit in short run

#Optimization of profit in the long run

#Maximum return on investment

#Decreasing sales turnover

#Fulfill sales target value

#Obtain target market share

#Penetration in market

#Introduction in new markets

#Obtain profit in whole product line irrespective of individual product profit targets

#Tackle competition

#Recover investments faster

#Stable product price

#Affordable pricing to target larger consumer group

#Pricing product or services that simulate economic development

#Pricing objective is to price the product such that maximum profit can be extracted from it.



Source: https://www.tutorialspoint.com/marketing_management/marketing_management_pricing_decision.htm