Marketing 301 Essay Example | Topics and Well Written Essays - 500 words

Marketing 301 - Essay ExampleEach business organization wants to set a set which does not just cover all the costs incurred by the company but leave alone to a fault generate a sizable mark-up for the company. The profitability objective will be taken into account by having a sensitivity analysis which looks at the changes in profit when prices and strength varies. It should be noted that volume sales is often inversely related to price, that is, the lower the price the higher the volume and vice versa. In edict to meet the volume objective, I will make sure that the price set will encourage the purchase of the desired volume. Next, in ramble to meet the competition objective, I will conduct a survey of the pricing of the different brands in the market to make sure that the price aerated is at par with the local industry. Lastly, the pricing should support the prestige objective. Recognizing that the young womens apparel store should absorb a trendy and chic image, prices shoul d not be kept too low in order to create this image. Low prices are often equated with lower quality and mediocrity.2. Based on the direct get by marketing materials that I relieve oneself found, a lot of firms are utilizing psychological pricing in order to entice customers in buying their products. Blouses are often priced around $5.99 or $8.95 in order to have the effect of being cheaper than it really is. This pricing strategy seems to be very consistent with competing firms like Wal-Mart and blush Target.