A firm may have various objectives and pricing contributes its share in achieving such goals. Firms may pursue a variety of value oriented objectives, such as maximizing sales revenue, maximizing market share, maximizing customer volume, minimizing customer volume, maintaining an image, maintaining stable price etc. Pricing policy should be established only after proper considerations of the objectives of the firm.
PRICING OBJECTIVES Goals that specify the role of price in an organization's marketing and strategic plans are pricing objectives. To the extent possible, these organizational pricing objectives are also carried to lower levels in the organization, such as setting objectives for marketing mangers responsible for an individual brand. These objectives help the company in integrating price with other marketing inputs so as to develop a synergic effect in the marketing and corporate strategies of the company. It is for this purpose also that pricing objectives are set with in the framework of marketing and corporate objectives. 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 and price points ; and 4) the resources you have available.
