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Prices have a direct impact on a firm’s bottom line. A small percentage improvement in price can
generate a large percentage increase in profitability. More important, as part of a company’s overall
value proposition, price plays a key role in creating customer value and building customer relationships.
So, instead of shying away from pricing, smart marketers are embracing it as an important competitive
asset.2 Major Pricing Strategies The price the company charges will fall somewhere between one that is
too low to produce a profit and one that is too high to produce any demand. figure 10.1 summarizes the
major conside