What is competitive analysis?
A competitive analysis is a critical part of the company’s marketing plan. With the assessment of this plan, you are able to recognize the points that make your product and service different and further find out various attributes that you find useful in attracting your target audience.
You can assess your competitors by placing them in strategic groups according to the way they compete for a share in the market. For every competitor or strategic group, prepare a list of their products or services, the profitability, growth pattern, marketing goals and assumptions, present and past strategies, business structure, size of sales.
You must answer the following questions at the time of evaluating your competitor:
- Who your competitors are?
- What is the share of your competitor in the market?
- What are the past marketing strategies of your competitor?
- What are the present working strategies of the competitor?
- How many hours do they purchase in a week to publicize using media in the market?
- What are the strengths and weaknesses of your competitors?
- What are the potential opportunities the competitors make available for you?
Competitive analysis is just an elaborate way to explain the process of analyzing your competitors and their tasks. Spotting and analyzing the marketing strategies of your competitors is the best way to evaluate the strengths and weaknesses.
After you know about your main competitors, the following ways can be adapted to monitor and analyze:
- Sign up to receive their email or newsletter
There are many companies that make it easy for almost everyone to sing up and receive email newsletters. A sign up form on either the website or the Facebook page helps in linking.
The best way to get a competitor’s non-newsletter emails is by signing up for a free trial or making a small purchase in order to be classified as a new customer. By getting emails from your competitors, you are able to understand and observe things from the customer’s view point within the same industry. You are benefited as you get to know about the tone of voice, creative style and the offer to be included in the email.
- Explore their website
Another way in which you can monitor your competitors is by visiting their websites to find out what they are doing right and what is wrong in their working. Exploring the website of the competitor is the best way to get information on various products that they have released, positioning, special offers, and discounts or any other strategies you won’t be aware of. Don’t forget to analyze the “careers” or “jobs” sections as you will be able to learn a lot of valuable information about the company, including the growth areas.
- Like and follow on social networking sites
‘Like’ your competitors’ page on Facebook. Connect with them on LinkedIn and do follow them on Twitter. There are many companies that release special promotions on their social networking sites, hence, if you don’t find their pages or profiles, you won’t come to know about the social media strategies. Also, the social media networks of competitors can be observed in order to find out how they position themselves and how individuals relate with their brand. This also gives you perception of what approaches and concepts are effective and which ones to avoid.
- Give them a call
This is one approach that will help you in finding out the way in which your competitors perform a business, especially, if they work over the phone. This will help you in analyzing how strong is the pricing structure and if they offer incentives. The biggest benefit of competitive analysis strategy is that you can ask them anything you would like to know.
Competitive analysis is considered to be an essential part of your overall marketing strategy. You can also make use of various tools and techniques to measure and rate the competitors.
These are the various ways in which you can keep a track of the marketing strategies that your competitor is using to stand strong in the market. Doing this, you get a chance to know the way your competitors are working and what ways can be adopted by you to perform better than them.