Selecting Target Price

The first step is to select the target price, such as survival, short-term profit maximization, sales volume, market demand, leading in market share, competition, prestige or status quo. The Company aims to try to survive by lowering prices. Profit is not so overlooked, as long as prices cover variable costs and some fixed costs. This target is only for the short term and long-term expected corporate

The maximum profit is now done by estimating the demand for the company and the costs associated with alternative prices and choose the price that produces maximum current profit, cash flow or return on investment (ROI). This strategy is done by assuming that the demand and cost functions can be known, but in reality difficult to predict. This strategy ignores the long-term performance, ignoring the effects of marketing mix variables, competitor reactions and legal constraints on the price.
Goal-oriented company in sales volume done by setting prices so as to increase sales volume. The Company assumes that the volume of sales that will result in higher per-unit costs are lower and profits higher long-term and assume that the market sensitive to price.
Target excel in market share made by increasing or maintaining market share without considering fluctuations in industry sales. Target excel in market share is often used by companies for products that reach the mature stage of product life cycle.
Target market demand is pricing linked to customer expectations and specific purchasing situations. This goal is often known as "give the price with what the market wants".
Target price competition designed to match or beat the competitor's price. The objective is to maintain the perception of good value relative to competitors. Tempo Scan bodrex priced in such a way to compete with competitors.
The target is to design a prestige that is consistent with the price of a product that has a high status or prestige. These prices are designed with little attention to the company's cost structure or a competitor.
Target status quo is the goal that set prices to maintain the existing prices in an effort to maintain the relative position of competitors.