3rd Exam

Price

•is the sum of all the values a customer gives up to gain the

benefits of having or using a product or service.

•exchange a certain value for having or using the product.

Pricing Objectives

•_____ are the goals that businesses set when

determining the price of their products or services.

•These objectives guide pricing strategies to align with the

company's overall business and marketing goals.

Profit Oriented Objectives

✓Maximizing Profit: Setting prices to achieve the highest possible

profit.

✓Target Return on Investment (ROI): Pricing to achieve a specific

return percentage.

✓Profit Margin Targeting: Ensuring a set profit margin on each

sale.

Sales Oriented Objectives

✓Sales Volume Maximization: Setting lower prices

to increase the number of units sold.

✓Revenue Growth: Focusing on increasing total

sales revenue, even at lower profit margins.

✓Market Share Growth: Pricing competitively to

gain a larger share of the market.

Competition-Oriented Objectives

✓Competitive Pricing: Matching or slightly

adjusting prices relative to competitors.

✓Price Leadership: Setting prices to influence

market trends.

✓Price War Avoidance: Keeping prices stable to

avoid destructive competition.

Customer-Oriented Objectives

✓ Value-based pricing: Setting prices based on

perceived customer value.

✓Premium Pricing: Charging higher prices to

reflect exclusivity or superior quality.

✓Psychological Pricing: Using strategies like

odd pricing (9.99 php instead of 10 php) to

influence buying behavior.

Social Ethical Objectives

✓Fair Pricing: Ensuring affordability while

maintaining ethical profit margins.

✓Sustainability Pricing: Setting prices that

reflect environmental and social responsibility.

✓Non-Profit or Cost Recovery Pricing: Aiming to

cover costs rather than generate profit

Maximizing Profit

Setting prices to achieve the highest possible

profit.

Target Return On Investment

Pricing to achieve a specific

return percentage.

Profit Margin Targeting

Ensuring a set profit margin on each

sale.

Sales Volume Maximization

Setting lower prices

to increase the number of units sold.

Revenue Growth

Focusing on increasing total

sales revenue, even at lower profit margins.

Market Share Growth

Pricing competitively to

gain a larger share of the market.increase overall market presence.

Competitive Pricing

Matching or slightly

adjusting prices relative to competitors.

Price Leadership

Setting prices to influence

market trends

Price War Avoidance

Keeping prices stable to

avoid destructive competition

Value Based Pricing

Setting prices based on

perceived customer value.

Premium Pricing

Charging higher prices to

reflect exclusivity or superior quality.

Psychological Pricing

Using strategies like

odd pricing (9.99 php instead of 10 php) to

influence buying behavior

Fair Pricing

Ensuring affordability while

maintaining ethical profit margins.

Sustainability Pricing

Setting prices that

reflect environmental and social responsibility

Non-Profit or Cost Recovery Pricing

Aiming to

cover costs rather than generate profit.