Editing Pricing objectives

{{Unreferenced|date=December 2009}}

[[File:Listado de precios máximos - Argentina - 1945.jpg|thumb|right|List price cap established by the Argentine government of [[Edelmiro Farrell]] in 1945.]]

'''Pricing objectives''' or goals give direction to the whole [[pricing]] process. Determining what your objectives are is the first step in pricing. When deciding on pricing objectives you must consider: 1) the overall financial, marketing,  and strategic objectives of the company; 2) the objectives of your product or brand; 3) consumer [[price elasticity of demand|price elasticity]] and [[price points]]; and 4) the resources you have available.

Some of the more common pricing objectives are:
* maximize long-run profit
* maximize short-run profit
* increase sales volume (quantity)
* increase monetary sales 
* increase [[market share]]
* obtain a target rate of [[return on investment]] (ROI)
* obtain a target rate of return on sales
* stabilize market or stabilize market price: an objective to stabilize price means that the marketing manager attempts to keep prices stable in the marketplace and to compete on non-price considerations. Stabilization of margin is basically a cost-plus approach in which the manager attempts to maintain the same margin regardless of changes in cost. 
* company growth
* maintain price leadership
* desensitize customers to price
* discourage new entrants into the industry
* match competitors prices
* encourage the exit of marginal firms from the industry
* survival
* avoid government investigation or intervention
* obtain or maintain the loyalty and enthusiasm of [[distribution (business)|distributors]] and other sales personnel
* enhance the image of the firm, [[brand]], or [[product (business)|product]]
* be perceived as “fair” by customers and potential customers
* create interest and excitement about a product
* discourage competitors from cutting prices
* use price to make the product “visible"
* help prepare for the sale of the business (harvesting)
* social, ethical, or ideological objectives

==See also==
* [[Price]]
* [[Price controls]]
* [[Price fixing]]
* [[Price gouging]]
* [[Just price]]
* [[Resale price maintenance]]
* [[Pricing]]
* [[Pricing strategies]]

{{DEFAULTSORT:Pricing Objectives}}
[[Category:Pricing]]