This exercise will help you identify and understand the different objectives that marketing managers may use when setting the price for a product.

Pricing objectives involve specifying the role of price in an organization's marketing and strategic plans. To the extent possible, these pricing objectives are carried to lower levels in the organization, such as setting objectives for marketing managers responsible for an individual brand. These objectives may change, depending on the financial position of the company as a whole, the success of its products, or the segments in which it is doing business. H. J. Heinz, for example, has specific pricing objectives for its Heinz Ketchup brand that vary by country. Pricing objectives fall into six broad categories: profit, sales revenue, market share, unit volume, survival, and social responsibility.

Read the descriptions of different pricing objectives and determine which type of objective it matches up with. Drag that item to the appropriate category below.

Profit Sales Revenue Market Share Unit Volume Survival Social Responsability
Nike Golf (To drive sales, Nike takes a 10% price reduction across the Nike golf line)

iPhone (To sell as many iPhones as possible, Apple has a wide assortment of models and storage capacity iPhones available at different price points)

Country Club (During a recession, people cut out non-essential expenses like country club memberships. Clubs have had to waive their initiation fees just to weather the crisis)

Hybrid Permits (Your university institutes a program that sells parking permits to faculty, staff, and students at a 25% discounted price if the permitted car is a hybrid)

Return on Assets (The firm prices its products so that it achieves a 10% ROA)

Florida Summer (During the hot summer months, all airlines decrease fares on the Florida routes to try to fill as many seats as possible)

U. S. Airways (When Southwest Airlines enters a market that is a U. S. Airways hub, U. S. Airways drops prices on popular routes to keep Southwest form stealing its customers away)

Special Drug Pricing (Drug manufacturers often provide coupons or even free medications to ill patients who cannot afford the medications)

Black Friday (Firms make drastic price cuts on certain items to drive store sales the day after Thanksgiving)

Operating Systems (Microsoft prices its Windows Vista operating system competitively to Apple’s MAC OSX)

Linens ‘n Things (Linen ‘n Things has to work hard just to stay alive competing against retail giants like Walmart and Target, often resulting in amazing deals for consumers)

Return on Investment (The firm prices its products such that it achieves a 20% ROI)