Views: 4344Importance of a Competitive Market Analysis
Conducting competitive market analysis helps you to understand more about your major competitors, like what are their products, how successfully they sell, and what are their marketing tactics.
You’ll have a chance to ward off your competitors and implement stronger business strategies. You’ll know more details about your environment and how you can become the leading company in your industry.
Benefits of Competitive Market Analysis
There are several factors that you should know about. Keep in mind that Competitive Market Analysis can help you identify your products’ unique features and value. You’ll understand what your competitors are doing right and where they are wrong.
Also, you’ll learn through customers what certain products are missing which will generally help you to improve your business and measure your success better.
Determine Your Competitors
First of all, you have to know who are your competitors and gather accurate data about them. No matter how similar some businesses are, using certain strategies the same way isn’t beneficial for everybody.
You can “divide” your competitors into two groups, like “direct” and “indirect”. Indirect competitors will have similar products to yours and will be in the same geographical area, while indirect competitors will have products that satisfy the same customer needs as your products.
For example, Adidas and Oxford are in the same industry but their style is totally different, so you have to determine links between different companies, see the unique aspects of brands and determine what kind of competitors they are and how can you overcome them.
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Determine the Products of Your Competitors
Products and services are the core of any business, so you have to know more details about them. Try to determine their pricing strategy, find out if they are working on volume sales or one-off purchases, and what is their market share.
Knowing the target audience is very important. In this case, you have to determine what kind of target audience they have, and what are their customers’ needs and requirements. It’s interesting to know how they compare themselves to competitors, why they think that they are different, and how they showcase those traits. Also, check how they distribute their products or services.
Research Your Competitors’ Sales Tactics
You need to know more about your competitors’ sales tactics and what kind of results they have. It’s a little bit tricky task but you need to ask the right questions to get the right and useful answers.
See what their sales process looks like, and what channels they use for it. They might be operating from numerous locations, check these kinds of aspects as well, and evaluate their growth. You could use their success stories to strengthen your strategies, but you need to know about their losses as well.
Check Any Additional Tactics They Are Using
Check your competitor’s prices, and what they offer to their customers. They might be doing discounts frequently, or using giveaways. Determine why they have specific prices. For example, if your product has better quality or better features you can sell it at a higher price, but you have to explain to people why.
Understand why customers are interested in you and in your competitors. Sometimes some customers might stay with you, then with your competitors, and vice versa. You need to understand more about specific reasons. Also, they might be more active on social media platforms, have more visibility for a wider audience, might have used viral marketing, etc.
Competitive Shipping Costs
While conducting a competitive market analysis look through shipping costs as well. Most of the customers aren’t happy with the expensive shipping costs. Nowadays, customers are happier when they don’t have to pay money for that at all and often prefer to deal with brands that have free shipping.
If most of the competitors have free shipping think about that option, at least try to not have too much shipping price. Also, if you don’t feel comfortable with free shipping, try to find different solutions, like holiday discounts or giveaways on social media platforms.
Analyze How Your Competitors Market Products
In order to understand more about their marketing strategies, see if they have a blog or any e-books. They might be offering customers videos or webinars as well. See if they have an FAQ section and what kind of visual content they have. Also, check if they have case studies and generally what online and offline advertising campaigns they have.
Check Your Competitors’ Content Strategy
In order to understand more, check how frequently they are posting their blogs, you can do the same with e-books as well, it depends on what you’ll understand after you’ll analyze how your competitors market their products.
Check the quality of their content and generally how accurate it is. See if their content is free and available for everybody, understand who is writing the content, and generally if it’s interesting and how much in-depth it really is.
Understand What Technologies Your Competitors Use
Understand more about technologies that are used by your competitors. It could help you to become more productive as well. Like numerous companies are using digital solutions right now in order to improve themselves and their services, so it wouldn’t be a surprise to understand that, for example, a company that is well-known for excellent customer service, is interested in the customer service software.
Observe How They Promote Their Marketing Content
Check the content again and see approximately how many keywords are used by your competitors, and how many internal links are they using. They might be using certain keywords which are successful for them but you haven’t used them yet.
Check which social media platforms are frequently used by their customers, what content of theirs is most liked by the target audience and generally look at more details of their accounts, like the number of followers, frequency of posting, etc.
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