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.(https://www.tutorialspoint.com/marketing_management/images/pricing_decision.jpg)
Objectives of PricingThe 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