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Competitor Analysis – Is it important for business growth?
Read this article to see why analyzing your competitors is an important part of your marketing and growth strategy. Many companies I have met Rarely do formal competitive analysis and focus on the race against their own. One of the most common reasons for this is the lack of competition in the market and the high focus on marketing.
It is likely that you will informally collect information about your competitors, but it will only work if you treat your customers well without worrying too much about what your competitors will do. Typically, you trust the product or service you offer And you get good feedback from your customers.
You will review your website from time to time and receive information from your customers and suppliers about the quality of your products and services and your competitors.
Most companies ultimately view their marketing and growth planning from an internal perspective. It is also common to want to copy your competitors directly, even if you are focused on being better or doing things differently. Analyzing competitors is a great way to position yourself in your customers “position and to view the market for your company from the outside.
More importantly, put yourself in the shoes of your customers and look at things from their perspective. It is important to understand what your competitors do better than you, but more importantly, to look at your business from the customer’s perspective and look for ways to improve.
In this article, I have outlined some important steps you need to take before getting bogged down in competitive analysis. I will discuss in more detail how to conduct competitive analyses in a future paper, but for the moment I will just outline them here.
In complex b2b sales, it is common to have a decision unit (DMU) and there are a number of roles that play a role in the decision-making and sale of products and services. The first approach is to create a customer persona, and for complex sales, it can be a combination of the sales team, marketing team, and customer service, team.
If you have already created personas for your business, read on and refresh your memory before you start your competitor analysis. If you haven’t created a persona yet, you can work on creating it before you rate your competitors. Once you have created your persona to evaluate competitors, it should work well, but you need to understand the persona involved in a typical sale and the role of each person.
Anyone who wants to put you in their shoes must understand why you say no, understand what would lead them to stop buying from you and understand your reasons for saying yes.
Once you understand your customer personality, outline your typical customer journey, and outline the steps you need to take to buy the product or service you are selling. It is important to take these steps from where we started, and it is important to start analyzing the competition. At every step, approach the journey of the customer from the perspective of the customer, not your own.
The first challenge is to give priority to the analysis of your competitors and to give enough time for their implementation. Many companies do not see sufficient value in the competitive analysis, which means that other activities are given priority and never carried out. For an experienced person, online competition analysis with 10 participants takes a whole day.
The second challenge is to understand what needs to be reviewed to make it as valuable as possible. I recommend the use of a formalized system for competition analysis and have found that formal approaches allow you to carry out frequent competitive analyses to compare changes over time.
In a competitive environment where many companies compete for the same business, it can be difficult to narrow things down to a reasonable number of competitors for meaningful analysis. In a niche environment, the opposite challenge can be faced: Are there enough direct competitors in meaningful analyses? The third challenge is to identify which competitors are included in the analysis and which are not.
The fourth challenge is to determine the frequency of analysis, and it is usually recommended to provide detailed data annually, but to update quarterly to detect important changes earlier.
The fifth challenge is to make sufficient use of and benefit from the analysis of competition by prioritizing what we find and taking action.
A formalized, systematic approach to competitive analysis creates an environment in which we can regularly conduct competitive analyses and identify important changes more easily. In this article, we will explore how to get the best out of competitive analysis and address it. We will discuss how we can conduct a competitive analysis in a successor program, Vlog Post, and how you can make the most of it, as well as the importance of competitive analysis.
The selection of which competitors should be included in your analysis and the selection of the correct frequency with which the analysis should be performed. This will vary from industry to industry, but it is a good starting point to select your competitors and carry out your analyses with the right frequency.
Choosing the right frequency will help you understand the value you are drawing from and the actions to be taken during the analysis.
Normally, about 70 data points are collected and the strengths, weaknesses, opportunities, threats, and swamps are summarized. Collecting these data – points facilitates the comparison of competitors and the identification of future changes. Choose the data you want to collect, but not too much or too little data at the same time and at the right frequency.
If you have ambitions to become a market leader, you need to understand your competitors and know where to improve, especially from a customer perspective. SWOT analyses work well as a summary of information to decide what priorities to respond to. Nowadays, a significant part of the competitive analysis can be performed from the desk.
Most of the information needed for the comparison is available online, whether in the form of a website, an email or even a phone call with your competitors.
Many marketing consultants carry out market competition analyses, but you need help in carrying out competitor analyses. You can conduct useful competitive analysis without delay and without the need for a full-fledged market research and analysis program.
If you need help in designing and performing competitor analyses, this is a good start for you. Further information on conducting competitive analyses can be found here and further details on competitive analysis for company growth here.
More to explore
No matter how long it has been since you last attended a marketing course (or if you have attended one at all),
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