A competitive analysis is a critical component of establishing a marketing plan by understanding the strengths and weakness of competitors in a market place.
Evaluation of competitors can come from various tools and techniques while derived from publically accessible sources.
Performing an analysis of a market’s competition can lead to the creation of short-term and long-term marketing goals.
Why is Competitive Analysis Important?
Competitive analysis offers you a quick way to compare your services and products against competitors in your industry. It allows you to make strategic decisions to capture more of the market share and answers fundamental questions, such as:
- Who are my competitors?
- What products or services do they sell?
- How much of the market share do they control?
- What are their past and current market strategies?
- What social media channels do they use to promote their products or services?
- What are my competitor’s strengths and weaknesses?
- What potential marketing opportunities exist for me?
Businesses that gather critical intelligence against their competitors can use this to leverage their bench marking and position in their industry. They can tap into the strategies of the past and capitalize on new opportunities to seize a larger portion of the market.
Always look at what other companies are doing, whether is it their social media campaigns or paid marketing tactics. You can gain immediate insights as to what works (or what doesn’t work) when it comes to connecting your products and services with the right customers.