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Review the following various pricing objectives: Targeted Return on Investment (ROI) The profit an organization hopes to make given the amount of assets, or money,
Review the following various pricing objectives:
- Targeted Return on Investment (ROI)The profit an organization hopes to make given the amount of assets, or money, it has tied up in a product.
- Maximizing ProfitsSet prices to increase revenues as much as possible, relative to costs.
- Maximizing SalesPricing products to generate as much revenue as possible, regardless of what it does to a firm's profits.
- Maximizing Market ShareSet prices allows capturing a larger share of the sales.
- Maintaining the Status QuoMeet, or equal, competitors' prices.
- Which pricing objectives are profit-oriented, and which objectives are sales-oriented? Why?
- What factors do organizations consider when making pricing decisions? Explain the difference between a penetration and skimming pricing strategy.
***Please cite any resources used so I can review them to further my understanding***
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