Explain The Major Categories Of Pricing Objectives & Identify Pricing Objectives For Nonprofit Organization

THE MAJOR CATEGORIES OF PRICING

OBJECTIVES

It is necessary that the marketing manager decide the objective of pricing before actually setting price.

According to experts, pricing objectives are the overall goals that describe the role of price in an organizations long-range plans. The objectives help the marketing manager as guidelines to develop marketing strategies.

Survival

A company can lower them in order to increase sales enough to keep the business going.
The number of products sold influences profit through economies of scale -- the relative benefit of selling more units.

Profit

Sales
Sales-oriented pricing objectives seek to boost volume or market share. A volume increase is measured against a company's own sales across specific time periods.

Status quo

It focuses on maintaining market share.

The following are the important pricing objectives.

Market

penetration Market skimming Target rate of return Price stabilization Meet of follow competition Market share Profits maximization Cash flow Product line promotion Survival

PRICING OBJECTIVES FOR NONPROFIT ORGANIZATION

An organization that exists to achieve some goal other than the usual business goals of profit, market share, or return on investment. Example: Government

Museums Theaters

Schools
Churches