Explain the different types of pricing objectives ? - Pricing objectives -

Pricing objectives -

Explain the different types of pricing objectives ?


Market share 
Pricing can be decided to increase the market share of the company
For big MNCs market share is more important. More market share can be e treated as an competitive advantage who are the competitors 

Profit maximization 
Company can maximize its profit in long run and short run 

Maximize number of sales unit 
MNC companies like apple and Samsung I would like to to increase their iI number of cells unit of smartphone to be sold in particular years 
LG Mein want to increase number of units sold for its television category 
Whirlpool Mein want to increase its number of units sold for its washing machine category 

Discourage competition 
A company can keep the lowest margin to discourage the entry of computer in that particular sector or industry 
Amazon is keeping lowest margin in retail sector 
Flipkart is keeping lowest market margin in its retail sector 
Swiggy and Zomato keeping lowest market margin in its food delivery sector 
BigBasket and grofers are keeping minimum margin for its grocery app delivery sector 

Exclusivity 
Company want to to differentiate its products from cheap product and average ordinary product so they are pricing their products higher end to differentiate between cheap and ordinary product and give status symbol to their product 
Examples rolls-Royce audi Mercedes BMW apple iPhone 

Partial cost recovery for societal marketing 
Sometimes NGO Social Organisation are keeping prices Lo aur negligible to benefit society and poor people like fees of the colleges fees of the government hospital fees of the charity organisation to stay or accommodate your health camps 

Retail pricing strategy keeping prices low 
Big Bazaar Star Bazaar D Mart keeping the prices of the the grocery items slow so that people come to their retail outlet visit frequently e and the loss is is recovered by other items where price is slightly increased or less discount is given 
When people come to the retail store they not only by the grocery but also by vegetables fMCG products durable products dairy products stationery cosmetic Pharmaceutical food. Sometimes impulse buying also takes place that will generate more profit 

Sachet or trial purchasing or test market purchase 
People can be given product in small sachet or at introductory  price with offer. Initial amount can be kept low so that people try the product and when people tested it trust it believe it then slowly price can be increased 

Pricing can be used as a strategic to against its competitors