ROI, or return on investment, is the amount of profit an organization hopes to make given the amount of assets, or money, it has tied up in a product. ROI is a common pricing objective for many firms. Companies typically set a certain percentage, such as 10 percent, for ROI in a product’s first year following its launch. So, for example, if a company has $100,000 invested in a product and is expecting a 10 percent ROI, it would want the product’s profit to be $10,000.
You are here
Home » Principles of Marketing » Price, the Only Revenue Generator » The Pricing Framework and a Firm’s Pricing Objectives » The Firm’s Pricing Objectives
Earning a Targeted Return on Investment (ROI)
- Front Matter
- Body Matter
- Back Matter