rganization in the development of a pricing strategy is the establishing of pricing objectives. Pricing objectives may be categorized as follows: (1) profit maximization pricing, which refers to the extraction of the maximum profit over the shortest possible time period; (2) market share pricing, which is used by a marketing organization willing to forego some short term profits for a long term assurance of market share; (3) market skimming, which is a practice of exploiting a new product to the maximum, before competing products are placed on the market, or before fad interest in the product wanes; (4) current revenue pricing, which is a cash generating strategy for firms requiring cash quickly and for which liquidity requirements are more pressing than are profitability goals; (5) target profit pricing, through which a specific rate of return on the organizational investment in the product is sought over a specific time period; and (6) promotional pricing, which is employed by marketing organizations as a means of promoting an entire line of products, regardless of the impact which such pricing may have on the profitability of a specific product. With respect to PBX equipment, AT&T observes target profit pricing.
A marketing channel is composed of the set of organizations which is required to move a product from its manufacturer to the end user. It is advantageous to marketers to have as short channels of distribution as is feasible. Marketing channels also provide a means of transmitting information between manufacturers and end users and a means of transmitting payment from end users to man
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