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Establishing Monetary Pricing Objectives
Establishing Monetary Pricing Objectives
Introduction
In setting monetary objectives several factors in relation to the overall marking strategy of the corporation should be considered
Competitive situation
Thirdly ,you have to study the competitive situation both form the point of inter brand and also from the point of view of the brand which provides the same need satisfaction .for example a private airlines is facing competition from the national airline and other provides faster trains on the same routes during convenient timings .therefore while pricing services ,competition should be understood in greater detail and depth
Strategic role:
Lastly you have to see what strategic role the pricing can play in your overall marketing strategy for example a hotel chain might offer a package of low price or discount that in the short run .it might be a losing proposition but in the long run this may give more customer satisfaction and thereby better utilization or services
5) Survival
In averse market situations ,the pricing objectives may involve foregoing desired levels of profit to ensure survival .intense competition changing consumer wants or critical cash condition will result in survival as objective .prices are cut to the extent it covers basic cost ,but this is only a short run objective
Price may be used effectively to develop loyalty and relationship with customers many companies now prefer patronage building to profit maximization as a future oriented strategic option .companies can accrue multiple benefits through relationship building.
Sales volume
Profit max
Market share
Objectives
Oriented
Survival
Society
3rd sem (2nd mid mini project) MBA Name : I.N.V.SIVA Roll no: 10HQ1E0026
Marks Awarded