Manufacturing and marketing equally share the responsibility of producing acceptable profits by effectively managing the product line price-cost structure. Marketing is responsible for establishing the firm marketing and pricing strategy and establishing reasonable long-range cost goals. Manufacturing is responsible for achieving these goals. The most successful firms will aggressively manage the price-cost structure rather than let it evolve in response to competitive pressures or as a result of normal cost reduction or process improvement efforts. This article presents a systematic process for effectively establishing price-cost goals in the context of long-range marketing strategy, and the firm's relative competitive strengths.