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Inelastic Demand

Pricing is one of the biggest growth levers inside any business because it adds a significant amount of expansion revenue and grows total customer value without additional costs to acquire that revenue.

Most businesses can only increase their price so much before demand begins to decline. In terms of economics, demand for most products is elastic.

One of the major benefits of building a brand is that it makes demand more inelastic.

This is where Marketing builds tremendous enterprise value because it enables demand inelasticity.

Stronger brand = higher price for same demand = higher margins

This is why brand-building activities like content can't be just measured by things like page views, emails captured, MQLs or even pipeline.

The full business value is much greater.

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