Enterprise Business Experts

Top Menu

  • Reach Us

Main Menu

  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
  • Reach Us

logo

Enterprise Business Experts

  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
  • Reasons to Consider Cleaning Services for Your Warehouse

  • How The Right Signage Can Dictate Success Or Failure In Business.

  • Giving Your Company Offices In Gloucester A Makeover

  • How to Choose the Perfect Ceiling Tile for Your Office

  • Keep Your Office Safe With Fire-Rated Plasterboard

Business
Home›Business›What Are Pricing Objectives?

What Are Pricing Objectives?

By Danny Messinger
February 6, 2017
2073
0
Share:

Pricing objectives guide the process of pricing products. The first step in pricing products or brands is to determine what your objectives are as a business or company. What does your business want to achieve?

Among market mix elements, pricing stands out as the most important. This is because it produces returns that support all the other components. Other market mix elements include promotion, place, and product.

Even though supply and demand are principal in guiding pricing processes and decisions, other objectives play key roles in dictating the pricing of business brands and products. These objectives are associated with profitability, competition, sales volume and the market shares.

Objectives of pricing can be categorized into the following groups:

Sales-related Objectives

For businesses to increase their sales volume, they set their product prices in a manner that more sales can be attained. Sales growth can have a positive effect on profits, thus pricing resolutions are taken in a way that increases sales volume. As such, change of prices and setting pricing policies is done to increase sales.

Alternatively, a business can modify its pricing policies to attain and maintain a particular market share.

Also, pricing is considered as one of the most effective tools to increasing the company’s market share. Subsequently, it is done in a manner that helps businesses to attain their targets or increase their market shares.

Pricing for Competition Purposes

Competition is one factor that has a significant influence on market performance. Businesses often react to their competitors by setting appropriate business policies. As such, companies adjust to best pricing strategies to respond to competition strongly.

Also, companies adapt better pricing objectives to keep away entry of new competitors to the market. For example, businesses set low prices to their brands to minimize profit desirability of brands. In fact, some businesses opt to sell their brands at a loss to keep away new competitors.

In contrast to setting prices to keep away new competitors, certain pricing practices can be adopted to kick out some competitors out of the market. Companies can forgo the immediate profits – by lowering and keeping prices very low – to maximize future profits by charging higher prices once they have removed weak companies out of the market.

Pricing for Customer Related Objectives

In any market decision, customers are the fulcrum. To win customer confidence businesses and enterprises adopt appropriate pricing strategies. They do this by charge reasonable and affordable prices for their brands. By charging reasonable prices make customers fell that they are not being conned.

Businesses also adopt appropriate pricing policies to ensure satisfaction of their customers. In order to achieve this, businesses set and regularly readjust to pricing that gives their clients satisfaction.

Pricing for Market Penetration Purposes

For a business to penetrate and dominate a market, its management must adopt strategies that attract the maximum number of customers. To achieve such a milestone, companies and businesses look at adopting best pricing policies. For instance, they charge lower prices to attract price-sensitive buyers into buying their products.

For Survival Purposes

A business can opt to adopt low pricing strategies for their products to ensure it survives in the market. By doing this, sales will remain sufficient to keep the business running. Businesses adopt survival based pricing policies for short-term losses for the sake of long-term sustainability.

To Maintain Image and Reputation in the Market

Effective pricing strategies have a positive effect on business and company’s image and reputation among customers. By charging affordable prices and keeping them fixed the business will have a better reputation in the mind of their targeted consumers as opposed to oscillating the prices.

For Pricing Enforcement Purposes

Pricing enforcement is whereby companies and their distributors agree that distributors resell their brands at specific prices. They may sell above pricing floor or below pricing ceiling. To ensure best pricing enforcement practices businesses and manufacturers must adopt appropriate pricing objectives. Pricing enforcement deters resellers from stiffly competing on prices.

For Price Stability

Finally, the objective of pricing is aimed at stabilizing market prices. Businesses set and implement pricing strategies that will ensure the stability of product prices in the market. Best pricing policies do away with the frequent and seasonal fluctuation of prices. Constant fluctuations of prices affect the reputation of a business or company.

Previous Article

Effective dosages of E juice

Next Article

Determining Eligibility for Spousal Maintenance

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    How to Choose the Right Format for Business Videos

    February 27, 2019
    By Danny Messinger
  • Business

    Skip Hire – 10 Justifications for Why You Shouldn’t Hire a Skip Or Smaller than expected Skip

    July 19, 2021
    By Danny Messinger
  • Business

    A Quick Insight Into Making Gemba Walks More Effective!

    October 3, 2018
    By Danny Messinger
  • Business

    Plan A Laser Tag Event For Your Extended Family Now!

    December 25, 2017
    By Danny Messinger
  • Business

    SEO – Why SEO is Great For Businesses

    February 26, 2017
    By Danny Messinger
  • Business

    Why do Small Businesses Rely on Payroll Services?

    October 21, 2017
    By Danny Messinger

  • Business

    What Are The Qualities Checked In A Caregiver During Recruitment?

  • Business

    The Hygenic Qualities Of Food Wrap

  • Business

    Serviced Offices – What Exactly Are Benefits?

Top Post

  • Business

    Reasons to Consider Cleaning Services for Your Warehouse

    Warehouses are often overlooked when it comes to cleaning, but it’s actually a very important part of running an efficient operation. Not only does a clean warehouse look inviting and ...
  • Business

    How The Right Signage Can Dictate Success Or Failure In Business.

    If you talk to any experienced business owner or manager, they can give you lots of excellent pieces of advice on what it takes to run a successful business. The ...
  • Business

    Giving Your Company Offices In Gloucester A Makeover

    There will come a time when your company offices start tool look old and tired and needs a makeover to breathe new life into your workspace. Doing this can also ...
  • Business

    How to Choose the Perfect Ceiling Tile for Your Office

    Are you looking to upgrade the ceiling in your office? Choosing the right ceiling tiles can make all the difference when it comes to aesthetics and creating an inviting work ...
  • Business

    Keep Your Office Safe With Fire-Rated Plasterboard

    If you are remodelling your office and are choosing the type of material to use for your ceiling, consider getting plasterboard fire rated to keep your office as safe as ...
Business

Reasons to Consider Cleaning Services for Your Warehouse

Warehouses are often overlooked when it comes to cleaning, but it’s actually a very important part of running an efficient operation. Not only does a clean warehouse look inviting and ...
  • How The Right Signage Can Dictate Success Or Failure In Business.

    By Danny Messinger
    February 14, 2023
  • Giving Your Company Offices In Gloucester A Makeover

    By Danny Messinger
    February 6, 2023
  • How to Choose the Perfect Ceiling Tile for Your Office

    By Danny Messinger
    January 20, 2023
  • Keep Your Office Safe With Fire-Rated Plasterboard

    By Danny Messinger
    January 8, 2023
  • Home
  • Business
  • Business Experts
  • Enterprise
  • Industry
  • Investment
  • Management
  • Marketing
© 2023- Enterprise Business Experts. All Rights Reserved.