Why must marketing objectives and pricing objectives be considered when making pricing decisions?

Answer 1

This is a very complex question. Many business try to establish prices based upon costs and profit requirements. However, in a competitive environment, unless you have a very significant differentiator, you will need to set prices based upon the marketplace ... competition. Consumer will pay what they believe it to be worth ... not what it costs you to produce it.

If demand is price sensitive, then the lower the price, the greater the potential demand.

Answer 2

Pricing Objectives Marketing