Question

As the marketing vice president of her firm, Jana is considering implementing a companywide pricing policy that all products must achieve a target profit margin of 15 percent so the firm can achieve its overall growth objectives. What type of company objective is this?
A. Profit-orientation
B. Sales-orientation
C. Competitor-orientation
D. Customer-orientation
E. Market-orientation

Answer 1

Answer:

A. Profit-orientation

Explanation:

A Profit-orientation objective is a type of company objective whereby strategies are directed to focus on ensuring that a certain margin of profit is attained or achieved on the sales of the company's products or services. It involves using a pricing strategy whereby prices of products or services are set to ensure a certain amount of profit is made on every sale or on the overall sales made.

Jana's implementation of a companywide pricing policy to ensure a profit margin of 13 percent is achieved on all products, is a clear example of a profit-orientation objective.