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; and 4) 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 dollar 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
• 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"
• build store traffic
• help prepare for the sale of the business (harvesting)
• social, ethical, or ideological objectives
• To get competitive advantage

See also: marketing, pricing, strategic planning, price