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? Multiple

Answer 1

OPTIONS:

a)profit-orientation  b)sales-orientation  c)competitor-orientation  d)customer-orientation  e) market-orientation

Answer:

a)profit-orientation

Explanation:

An objective that is profit-oriented involves prioritizing the use of a pricing strategy which is aimed at maximizing profit by setting competitive prices that would guarantee enough profit per unit sales in relation to cost, or increase the number of unit sales that would in turn result in increasing the profit margin at large.

The company's objective of Jana that is stated in the question, closely relates to a profit-orientation type of objective, since it highlights using a pricing policy that focus on achieving a target profit margin of 15 percent.