Profit Oriented Pricing Strategy

The video tutorial discusses the role of marketers in setting product prices, emphasizing the importance of covering production costs and considering strategic goals. It introduces the profit-oriented pricing strategy, which focuses on achieving specific profit targets or maximizing profit. The tutorial highlights the complexity of pricing decisions, noting that higher prices can reduce sales volume. It also explains that a profit-oriented approach may lead to higher prices compared to strategies focused on market share.

What is one of the primary responsibilities of marketers in a business?

• Overseeing production processes

• Managing employee relations

• Determining the price of products

• Designing product packaging

What is a key consideration when setting a profit-oriented pricing strategy?

• Reducing advertising expenses

• Achieving a specific profit goal

• Covering production costs

• Maximizing market share

How does raising the price of a product generally affect sales?

• Decreases the number of units sold

• Increases the number of units sold

• Doubles the sales volume

• Has no effect on sales

What is a potential downside of focusing solely on profit in pricing?

• It may lead to lower production costs

• It can result in higher market share

• It might put upward pressure on prices

• It ensures customer satisfaction

When might a business choose to set a lower price than a profit-oriented strategy would suggest?

• When aiming to increase market share

• When production costs are high

• When launching a luxury product

• When targeting a niche market