The Importance of Performing a Competitive Marketing Analysis.
It has been said that no man is an island. The same is true for businesses too.
What would it be like if you were the only business offering your product or service? You wouldn’t have to worry about the competition, because you would always be capturing 100% of the market share.
But chances are, you aren’t the only one who’s offering or providing what you are selling, and that’s why it’s so important to do a competitive analysis! A competitive analysis not only allows you to better understand your competition, but your customers too so that you can better position yourself to reach them, and win them!
Here are the fundamental components of a competitive analysis that I use at Peppershock Media on a regular basis to help our customers boost their brand and bottom line!
It’s one thing to know what you’re charging your customers and why, but knowing what your competition is charging can help you understand not only the market better, but your own ranking within it.
2. Market Growth Potential.
What are some of the gaps that you can identify in your competitions, offerings, services or support? Where are there efforts falling short? Where have they failed to expand, streamline or diversify?
3. Marketing Efforts.
How is your competition getting the word out and reaching their customers? What platforms are they using, what’s their reach, and where is their traffic coming from? Discover everything that you can identify, and enjoy the research.
4. Think Positive.
What’s positive about your competition? What are they really killing it at? Are there things that they are really well known for, and when you do your research what are you hearing, seeing and feeling? And most importantly, what are their customers (and yours!) hearing, seeing and feeling too.
5. SWOT Analysis.
Now that you have done some research on the competition, it’s time to perform a SWOT analysis! SWOT stands for Strengths, Weaknesses, Opportunities and Threats, for the both of you! Ask your employees, vendors, customers and more for input to get a more objective, bird’s eye view of your efforts.
6. Make a Plan, and Take Action.
Now that you have a good idea of what makes you and your competition tick, you can create a plan that plays to your strengths, and better insulates your weaknesses. Set goals, design, and establish action steps to ensure that you can achieve them.
When you understand your competition, you’re better prepared to provide the types of products and services your customers want, and capture more market share. No man (or woman!) is on an island, so let’s paddle out there and discover what your customers are really looking for!
We Can Help!
Complete your competitive marketing analysis with a professional. Schedule a meeting with Rhea Allen today.