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xx8) Maria has just started a company that makes notebooks and other stationery items out of...

xx8)

Maria has just started a company that makes notebooks and other stationery items out of recycled materials. She has decided to use a profit orientation, and wants to make a 10% profit from all sales. Why is this a bad idea?

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This is a bad idea since one of the factors which decide pricing is competitive.Hence using price orientation to make compulsory profits on sales may not take the competitor's price into account. Therefore, maria may sell her stationary at price much more than competitors which might affect the sales of the company and the result is less total profits. Consumers also have some previous price anchors on which they base their decisions. If the price of maria's products is much more than the price anchors of consumers, then the profit oriented strategy will not work.

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