Get Started With Competitive Market Analysis in 6 Easy Steps [Infographic]
“Taste the relish to be found in competition – in having put forth the best within you.” – Henry Kaiser. This is not just a quote but a mystery tool that many entrepreneurs use to make their small businesses successful in just a few years. It suggests that competitive market analysis is necessary for every marketer to stay one step ahead of their competition.
But if you are a newbie in marketing, conducting an effective competitive market analysis can be overwhelming. So here we are with a 6-step beginner’s guide to help you understand competitive market analysis and how to go about it.
90% of Fortune 500 companies practice competitive intelligence. There’s no doubt that competitive analysis is a critical part of every marketing plan. But before you dive into this segment of your business, let us first understand the key steps to conduct an effective competitive market analysis.
So, let’s quickly go through this summary guide-
Competitive market analysis is a process of identifying and comparing your competitors’ best products or services with yours. It focuses on identifying the weaknesses and strengths of your competitors as well as the points where you can do better and outperform them.
A competitor analysis will give you an idea of how your customers see you in comparison to your competitors. It can provide you with a detailed explanation of why your competitors are staying ahead of you. This will help you to understand how you can excel in those areas to keep yourself ahead of the rest.
6 Steps to a Successful Competitive Analysis
We’ve already established that conducting a competitive market analysis is the key to a successful business. So, without further ado, let’s dive into this 6-step guide that you should follow while conducting your analysis:
1) Determine Who Your Competitors Are:
The very first step to a successful competitive analysis is to identify your competitors. You can start by dividing your research into two categories: Direct and Indirect Competitors.
Unlike direct competitors, indirect competitors are those who do not have the same product or service as yours but can still satisfy your audience’s needs. You should keep an eye on all of your competitors.
2) Research the Type of Products Your Competitors Offer:
Business is all about providing the best products and services to your customers. But to know that you are providing the best and most unique service, you first have to research your competitor’s products.
You can check the products that are similar as well as different from yours. Also, check the content they are sharing on their websites or social media platforms. Checking the keywords they are majorly targeting will help you understand their SEO and marketing strategies.
Also, check the pricing and discounts they offer on their products. Make sure you analyze how customers are reacting to their products and services. Detailed analysis of all this will help you design a unique product.
3) Identify Areas Other Businesses are Lacking in:
There is a saying that only a fool learns from his own mistakes, a wise man learns from the mistakes of others.
Well, this is true. Just checking on your competitors’ best products alone won’t benefit you but identifying the areas they are lacking in will surely give you an edge. Investigating the loopholes that others are missing out on will help you grab opportunities where your business can mark a hit!
4) Explore Your Competitor’s Website:
Digital marketing is all about a good landing page or website that has the maximum power to convert your audience. 75% of people believe that they judge the credibility of any business through its website.
Therefore, it is important to have a careful examination of your competitor’s websites. It will help you in developing an effective website for your business that will aid in converting maximum visitors into paying customers.
5) Detailed Analysis Using the Right Tools:
Now it’s time to conduct a detailed analysis of your competitors. There are many marketing tools out there that can help you in maintaining a detailed report of your competitor’s presence across all marketing platforms.
Identify their SEO strategies as well as backlinks to understand their marketing tactics. Search their presence across all social media platforms and check what kind of content they are sharing.
You can also leverage users’ feedback as well as directly communicate with the customers to understand their expectations. In addition, you will have to keep updating your reports as things can take a turn at any time in the market. You can collect feedback by creating customer surveys or feedback forms using Outgrow’s free form builder. Sign up here to learn more about Outgrow.
6) Analyze What you Need to do to Exceed the Competition
Analyzing your competitor’s performance before the war is an excellent idea to stay ahead of them. But for maintaining the number one position and outperforming them in all aspects, you need to focus on your strengths and weaknesses.
Identify the unique points of your brand, and try to engage your audience better than any other business. Focus on your existing process and try to improve it after reflecting on your competitor’s marketing strategies.
A strong competitive analysis might take a lot of time and effort, but its benefits are worth trying. Consistent analysis of your competitors will keep you updated about your customer’s needs, industry trends, and the areas where you can outperform your competitors.
A good competitive market analysis is a crucial business strategy that you should work on. Another such crucial strategy is content marketing. You should be consistent with your content marketing efforts to stay ahead in the digital marketing world.