There are four common approaches to selecting an approximate price level. List them and provide a brief description for each one.

Four common approaches to helping find this approximate price level are the following. (1) Demand-oriented-the price setter weighs factors underlying expected customer tastes and preferences more heavily than such factors as cost, profit, and competition when selecting a price level.
(2) Cost-oriented-the price setter stresses the cost side of the pricing problem, not the demand side. Price is set by looking at the production and marketing costs and then adding enough to cover direct expenses, overhead, and profit.
(3) Profit-oriented-the price setter may choose to balance both revenues and costs to set price using profit-oriented approaches. These might either involve a target of a specific dollar volume of profit or express this target profit as a percentage of sales or investment.
(4) Competition-oriented-the price setter stresses what competitors are doing. See Figure 14-2.