this category of revenue management involves redefining pricing strategy and developing disciplined pricing tactics. the key objective of a pricing strategy is anticipating the value created for customers and then setting specific prices to capture that value. a company may decide to price against their competitors or even their own products, but the most value comes from pricing strategies that closely follow market conditions and demand, especially at a segment level. once a pricing strategy dictates what a company wants to do, pricing tactics determine how a company actually captures the value. tactics involve creating pricing tools that change dynamically, in order to react to changes and continually capture value and gain revenue. price optimization, for example, involves constantly optimizing multiple variables such as price sensitivity, price ratios, and inventory to maximize revenues. a successful pricing strategy, supported by analytically-based pricing tactics, can drastically improve a firm's profitability.