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Profit
oriented goals are including three
main variables. Profit maximizing has the
goal of extraction of maximal possible
profit. Satisfactory profit goals target the
specific profit rate. Return on investment
pricing is primarily focused on direct
return of investment to the investor.
Sales
oriented goals can have two main
targets. Market share approach is targeting
a specific price level that should bring the
company to the specific position in the
market. Sales maximizing prices is supposed
to bring direct increase of profit.
Competition
variable is very important, therefore the
company can adopt several price policies
that should address the competition in
appropriate way. Competition avoiding
process have a goal of avoiding clashes (
price wars ) with competition. Repelling
prices policy has the aim of discouraging
the competition from entering the new market
or product category. Stabile prices policy
is the common price strategy that brings
balance between attractiveness to shoppers
and challenge to competition.
Prestige
price positioning have relatively
high price level. There is a certain segment
of customers that are willing to pay high
premium price in order to distinguish themselves
from the majority of the market. These
customers are building their lifestyle image
by purchasing exclusive and luxury products.
Status
Quo is pricing policy when company
does not want to make to make disturbances
in the market. This is the case with the
products that have the specific position in
the market, while any bigger alteration in price
policy would not bring much value.
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