70.2K

Verified Solution

Link Copied!

Pricing Objectives Pricing objectives afe derived from broader marketing objectives. Otganizations using a multi-segment marketing approach to marketing will likely have different objectives for each brand offered to the market. Smaller fitms that seek to fill niche markets will often use only a single approach to pricing products. The objectives and goals of a pricing strategy are one of the most overlooked elements in the marketing mix. Many firms use simplistic approaches to pricing and foil to recognize the strategic importance that solid pricing objectives can offer. Pricing objectives may be categorized as profit oriented, 5ales oriented, and status quo oriented After reviewing each statement, match it to the appropriate pricing objective or example it best represents. Match each of the options above to the items below. A specific level of profit as an objective. Fall Line manufactures custom plows. Company management has set a policy for salespeople that allow them to negotiate price with customers as long as any bulk sales result in a minimum 34 percent return on direct costs of the products including delivery. An objective to get as much profit as possible. When Apple introduced the iPhone, the product was initially priced around the $600 mark. While most consumers felt the price was a bit high, a significant portion of the target market did buy one. Six months later, the price was reduced to the $350 to $400 mark, Many consumers who did not initially purchase an IPhone immediately purchased as they felt prices were finally "fair." Later, Apple further reduced the phone to $200. Again, Apple gained additional adoption of the 1Phone. An objective to get some level of unit sales or dollar sales without referring to profit. Previously over 50 percent of the retail and online business at Jeweled Remembrances relied on sales of jewelry products that are prices between $1,000 and $5,000. Early sales reports from last quarter indicated that consumers were primarily purchasing products prices less than $1,000. Kenny feit this was due to a generally weak economy and launched the inexpensive elegance" campaign which heavily promoted lower priced Jeweiry in order to increase the number of Christmas related sales. An objective to get some level of share or market without referring to profit. TeraFirma is a new firm offering electronic processing software solutions for credit unions. Traditionally, this industry has been dominated by three firms. TeraFirma's CEO has indicated that the primary goal for the first year is to achieve a 10 percent share of the credit union software market. To do this, aggressive entry level pricing and the waiving of "set-up" fees will be offered during the first year of operations. An objective that maintains price stability in an industry. Raymond Bent, the CMO with Oglivy Pressure Solutions, Inc., was reviewing overall demand estimates and competitive intelligence. The competitive information being reviewed indicated that each of the major suppliers increased prices about 3 percent per year for the past 3 years. Raymond is proposing that Oglivy increase prices to the "standard" 3 percent to keep in line with competitors. Aggressive action on one or more of the four Ps other than price. Patek Phillipe is one of the world's finest watch makers. The company normally retails watches anywhere from 5-10 times the amount of the average Rolex. The long tradition of quality makes this brand one of the most sought-after watches on the market today

Answer & Explanation Solved by verified expert

See Answer