The Pricing Strategy of the Young Womens Apparel Store - Essay Example

Each business organization wants to set a price that does not just cover all the costs incurred by the company but will also generate a sizable markup for the company. The profitability objective will be taken into account by having a sensitivity analysis that looks at the changes in profit when prices and volume varies. It should be noted that volume sales are often inversely related to price, that is, the lower the price the higher the volume, and vice versa. To meet the volume objective, I will make sure that the price set will encourage the purchase of the desired volume. Next, to meet the competition objective, I will survey the pricing of the different brands in the market to make sure that the price charged is at par with the local industry. Lastly, the pricing should support the prestige objective.

Recognizing that the young women’s apparel store should have a trendy image, prices should not be kept too low to create this image. Low prices are often equated with lower quality and mediocrity.
2. Based on the direct mail marketing materials that I have found, a lot of firms are utilizing psychological pricing to entice customers in buying their products. Blouses are often priced around $5.99 or $8.95 to have the effect of being cheaper than it is. This pricing strategy seems to be very consistent with competing firms like Wal-Mart and even Target. However, the price level is often higher in upscale stores. Retailers like Wal-Mart compete by pricing more competitively.

3. I will be interested in pursuing marketing, advertising, product, and public relations management and market research analysis. Having been exposed to jobs that required creativity in coming up with advertising campaigns, I believe that I am already equipped with the basic know-how in coming up with creating advertisements that stir the interest of the market. My innate ability to deal with people by being attuned to their needs will make me a good public relations manager. The second position in which I would like to specialize in is a market research analyst. I know that this post requires a lot of research and analysis which I believe is challenging and exciting. Even though it seems more complicated, I am always delighted to learn something new to realize my full potential. I will use my previous experience of research to gain insight into the different consumer trends in the market. My connection with business organizations will be put to use by conducting trade interviews with industry players. Lastly, I am very good at numbers which will greatly aid in research mathematics. Read More