Why should a marketer be aware of competitors' prices?

Pricing strategy is an approach planned to achieve market objectives. Pricing policy includes differential pricing, new product pricing, product line pricing promotional pricing among others. When marketers employ different prices, it means they charge different buyers different rates for the same quality and quantity of products.

The reasons why a marketer should be aware of competitors prices include:

1. Keep the costs in line with what people in the market are willing to pay. This ensures that your products are bought the same as from the other sellers.
2. Helps to understand when you lower prices compared to the competitors. When your rates are lower than those of the competitors this gives an advantage, this will be ensured by convincing the customers that the product is of the same quality as that sold at a higher cost.
3. Ensure that the production cost is covered, and profits are sustained.