Question about Market Makers

Hey guys..I have a question about market makers' strategies..hope its not a noob question. So on an exchange, or the OTC markets what sort of strategies does a market maker use in order to determine where they should price their bids and ask quotes. I sat in on a desk that makes markets in OTC securities and got to see how the quoting system works... I was just curious to know what techniques are used by traders to determine their quotes..thanks in advance

No specific techniques... It's just common sense.