Final answer:
Marketers must understand their firm's competitors to succeed, particularly in competitive industries such as technology and fashion. This knowledge help firms to adapt, innovate, and stand out in the global market. Failing to understand the competition could lead to reduced profits or business failure.
Step-by-step explanation:
It is critical that marketers understand their firm's competitors is a true statement. Grasping an in-depth knowledge of the competitive landscape is fundamental for marketers as they develop their strategies. In highly competitive industries, such as technology or fashion, understanding what competitors offer can be the difference between a successful marketing campaign and one that falls flat.
Competition analysis enables marketers to identify market trends, foresee changes in consumer preferences, and adjust their product or service offerings accordingly. It could also help highlight a firm's unique value proposition and differentiate it in the market. With the rise of globalization and advancements in communications and information technology, competition isn't just local; it's global, making it all the more important for marketers to be well-informed.
Therefore, when competition is fierce and firms offer better or cheaper products, understanding competitors' strengths and weaknesses becomes crucial in maintaining or increasing a business's profits and sustainability. Hence, the assertion that knowing your competitors is critical is unequivocally true.