Distributors know that pricing is a critical element for their marketing and profitability efforts, but, according to the 2015 State of Distributor Marketing, many rely on competitors' pricing to help determine their own.

Nearly 60 percent of survey respondents said they took this approach to price management.

While this can be an effective way to gauge market conditions, what this doesn't necessarily do is measure the value provided to customers. And without factoring in value, distributors can quickly find themselves racing to the bottom on prices.

Measuring value takes a more strategic approach than just comparing visible prices. It requires rigorous and objective research – and investment in tools that can help augment price setting. It requires understanding the role you play for your customers beyond just providing product.

And it requires understanding more completely the markets in which you operate.

Read more about how a more strategic approach to marketing can improve your return on investment in 2015 State of Distributor Marketing: Effective Strategy Solves Challenges.