Proceedings

6. The value adding chain must assure, through plans of selling the product,
terms of sales by optimizing both material and processing costs, and by value
analysis, to determine measures to be taken and implemented to achieve the
objectives required for each product.
I. Stages of TC method are the following:
Stage I. Setting the target price
Usually, target price is set by market research techniques and concerns the life of the
product. Therefore, it has a strategic determination, a dynamic character and assumes
many forms and levels in relation to market segments and over time supply and
demand.
Market research for the design product resulted in determining a sale price and the
forecast sales volume. It forecast price that will evolve throughout the product
lifecycle.
The steps of the target setting strategy:
For what target markets or market segments should be aimed?
� Target markets (national, international, global);
� Target market segments (price, depending on use);
� The attractiveness of those target markets and market segments.
How does the competition develop?
� The structure of competition (market volume, market share, scope of interest
of competition);
� Structure of cost and quality standards;
� Prices and future pricing policy.
How do the target client groups evolve and what claims will them have regarding the
products?
� Development of target customer groups (segments developments);
� Future claims from customers, for example with regard to price;
� Characteristics of products which highlight the performance;
� Operating characteristics;
� Delivery, service, etc.
� Which is the client’s opinion regarding the prices of the future products.
What is the strategy that the product manufacturer seeks?
� Strategic projects on markets and customers (products, markets, product life);
� Strategies in terms of timing and choice of product depending on which will
calculate the cost and price target.
What purposes related to domestic policies seeks the producer?
� What is expected in terms of return on capital?
� Cash flow;
� Operational results.
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