Final answer:
Marketers must consider the dynamic competitive environment due to technological advancements which increase global competition and globalization that interconnects markets. Additionally, market competition spurs innovation as firms seek a temporary advantage to earn higher profits.
Step-by-step explanation:
Marketers must pay attention to the dynamic competitive environment for a couple of pivotal reasons. First and foremost, the advancements in technology have made it possible for consumers to access products and services from all over the globe, which increases competition and reduces the geographical constraints for market entry. As such, local businesses are not only competing with their neighbors but with global entities as well. Secondly, globalization has linked markets across the world, leading to increased opportunities for businesses to source materials, collaborate, and sell internationally, intensifying market competition.
It's also important to consider that if a firm achieves economic success in a monopolistic competitive market, it can attract new entrants, heightening the competitive pressure. A successful business model or product can be replicated or improved upon by newcomers. Additionally, competition is a driving force for innovation, with companies continually looking to discover new technologies and product features to gain a temporary edge over their rivals and secure higher profits before the competition catches up.