A competitive analysis is a statement with the purpose of evaluating your competitor's weaknesses and strengths that will provide you with an advantage in the marketing industry. If you will write a competitive analysis, you'll learn a lot about your business and throughout the process, you will become a more valuable resource for your company or clients. There are different types of competitive analyses; these are social media competitive analysis, competitive market analysis, competitive landscape analysis, competitive environment analysis, and competitive analysis report.
It is important to look out for your competitors in order to stay on top of the market. This analysis will help you stay on trend and identify your competitor's marketing strategies and how you can outdo them. Do you want to soar high in the marketing business? These steps will surely help you.
1. Group Your Competitors
Who are your competitors in the market and business? List them. Conduct thorough research of your competitors' strong points and weak points in their business. You can use the SWOT Analysis format. Their weaknesses are usually based on the lacking assets and skills needed in the market. Understand the forces that drive them. The Asia Pacific says in their article, "According to theory, the performance of a company within a market is directly related to the possession of key assets and skills." So it is important to check these areas about your competitors.
2. Competitor Summary of Products
Examine how your competitors sell and market their products. Look out how they give their services to the customers. One of the ways to do this is through a customer satisfaction survey. How do the customers see their services and products? Do customers react positively or negatively? You can contact people, like journalists and consultants, and ask their opinions about your competitors. You can easily access the website of your competitors and look for the information that may help you. Check every single detail about their assets and skills in the market.
3. What Are the Strategies of Your Competitors?
It is important to analyze the strategies of your competitors to help you with your business. You can use their marketing strategies and apply to yours. Focus on the facts. You can ask different people who have bought their products and services and you can make an analysis of your competitor's strategies. You can follow their social media accounts. You can also subscribe to their websites. Don't limit your researches. Research as much information you need.
Determine how your competitors sell and market their product promotion. Why do the customers buy their products? Identify what makes their products unique from other products in the market. Do their products meet the needs of the consumers?
Next is distribution, analyze how your competitors distribute their products, and what are the business distribution strategies their products. Where can customers buy their products? Look for the channels your competitors are using to distribute their products.
About the pricing, how much are the products being sold by your competitors? Are they expensive? Are they cheap? Inspect why their customers are willing to pay for a sum of money to use their products.
What promotions do your competitors have to hook their customers? What are their marketing methods? Are the customers persuaded? Are they effective?
Where do they advertise their products? Identify their advertising strategies. You can research the hierarchy-of-effects theory and scrutinize if your competitors use this theory to get customers to buy their products. The question for you is, how are you going to be far better than these competitors?