When marketers at New Balance race to develop a new product, they have a particular price in mind from the start. New Balance makes high-quality, high-performance athletic shoes. The brand is, as company ads proclaim, "endorsed by no one," yet the century-old company regularly racks up $1.5 billion in annual worldwide sales and currently trails only Nike and Reebok in the U.S. market.
Major competitors keep labor costs down by manufacturing their shoes outside the United States, mainly in the Far East. In contrast, New Balance produces 25 percent of its shoes in five company-owned New England factories: one in Boston, one in Lawrence, Massachusetts, and three in Maine. How can New Balance remain competitive while balancing "made in America" and "the price is right"?

1. What pricing objectives does New Balance seem to employ?
2. What type of pricing strategy is New Balance using?
3. What other pricing tools does New Balance employ?