Identifying a Pricing Objective - Essay Example

The paper "Identifying a Pricing Objective" is an outstanding example of an essay on marketing. Price is a primary element of product marketing and sales. Pricing objectives offer guidance to the decision makers in planning the pricing policies and setting the actual prices. It is therefore significant for the marketing manager to set a pricing objective before setting the price. In this regard, because of the low sales recorded by OatHealth, the pricing objective will be based on giving discounts to the customers and offering promotions. Therefore, the primary pricing objective will be offering one product discount for a customer who purchases two items. That is; a customer who buys two OatHealth products gets one free. This objective will be attained through the reduced cost of production attained through mass production. This bundle pricing strategy will allow the company to sell a set of their products for a lower price than it would be if the customer bought the products separately. This will increase sales and profits. Almost all consumer goods rely on their prices to woo customers. For instance, Fubu and Nike shoes rely on their prices. The two companies use both cost-based pricing and skimming pricing. They offer their products at high initial prices and slowly lower the prices to make their products readily available to a broader market. It is essential for pricing managers to consider the attributes, needs, and expectations of its target markets. Identifying the economic attributes of the customers allows the company to set prices for the customers. For instance, the affluent can be targeted using skimming pricing. It is in this regard that pricing management must go hand-in-hand with the identification of the correct target market.