What are the possible pricing objectives?

PRICING IS THE LONG DEBATING SUBJECT , SIR ............. SHORT ONE IS TO CAPTURE THE MAXIMUM PROFITS OUT OF ANY DESIGNED PRICE OF ANY PRODUCT/SERVICE ....

I fully endorse the answer of Mr. Sidvin Shetty .

theses are the objective of Pricing :

• Survival (as long as prices > VC and some FC)
• Meet competition
• Maximize current profits or ROI
• Maximize market share

possible 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 is an vital component of overall performance of the brand .

The key indicator's of pricing should be:-

• Competitor's pricing
• Level of competition
• Company's expected profitability
• Differences (If any) on costing impact on seasonality or availability
• Level of requirement of ATL or BTL
• Expected ROI & expected turnover

There are lots of methodology to be followed but it all depends on Industry, competition, Sector, Level of Market maturity, Number of players in markets, regulatory issues etc

The main objectives are:

- Market share

- Generate revenue

- Maximizing Profit

- To go long with competitors

- 

possible  pricing objectives in marketing

Thank you for addressing your question to me. As I read on a blog of an expert Pete Williams on Consumer Knowledge website, His description provides answer to your question.

He says " The objectives help the marketing manager as guidelines to develop marketing strategies. 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

I Agree with Mr. Zafar and Mr.Sohail.

Some of the more common pricing objectives are:

To maximize long-run profit

To maximize short-run profit

To increase sales volume 

To increase the  market share

To get rate of Return on Investment (ROI)

To stabilize market or stabilize market price

To encourage company growth

To maintain price leadership

To discourage new entrants into the industry

To match competitors prices

To obtain the loyalty of distributors the sales team

To create interest  about a product

To discourage competitors from cutting prices

Pricing objectives or goals give direction to the whole pricing process. Determining what your objectives are is the first step in pricing. When deciding on pricing objectives you must consider:1) the overall financial, marketing, and strategic objectives of the company;2) the objectives of your product or brand;3) consumer price elasticity and price points; and4) the resources you have available.

Some of the more common pricing objectives are:

• maximize long-run profit
• maximize short-run profit
• increase sales volume (quantity)
• increase monetary sales
• increase market share
• obtain a target rate of return on investment (ROI)
• obtain a target rate of return on sales
• stabilize market or stabilize market price: an objective to stabilize price means that the marketing manager attempts to keep prices stable in the marketplace and to compete on non-price considerations. Stabilization of margin is basically a cost-plus approach in which the manager attempts to maintain the same margin regardless of changes in cost.
• company growth
• maintain price leadership
• desensitize customers to price
• discourage new entrants into the industry
• match competitors prices
• encourage the exit of marginal firms from the industry
• survival
• avoid government investigation or intervention
• obtain or maintain the loyalty and enthusiasm of distributors and other sales personnel
• enhance the image of the firm, brand, or product
• be perceived as “fair” by customers and potential customers
• create interest and excitement about a product
• discourage competitors from cutting prices
• use price to make the product “visible"
• help prepare for the sale of the business (harvesting)
• social, ethical, or ideological objectives