Do you have competitive analysis questions? One of the most informational and comprehensive ways to gain insight into who you share your target market with is through a competitor analysis. With this approach, you will gain a better understanding of your competitor's strengths and weaknesses and how you can best differentiate.
What is a Competitor Analysis?
A competitor analysis is a critical portion of any marketing plan that businesses should undergo in order to better understand their competitors and find ways to market to their target audience. According to Entrepreneur, the definition of a competitor analysis is:
Identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to those of your own product or service.
What Does a Competitive Analysis Do?
When a business conducts a competitive or competitor analysis, they are taking a strong step toward building an effective and efficient marketing plan. This analysis helps you not only understand your competition, but also gain a better understanding of what makes your company unique in a saturated business climate.
How to Conduct a Competitor Analysis to Determine Strategy
Conducting a competitor analysis is a great way to determine the strengths and weaknesses of your own business and your competitors. To conduct a proper competitor analysis, find all of the businesses that could compete with your product or service. These could include direct competitors and indirect ones. Once you have your list, organize them into groups based on how competitive they are against your own business.
For each competitor, ask yourself the following questions:
- What is the scope of this competitor's market share?
- How does this competitor's market share compare to the share held by my own business?
- What are their past and current marketing strategies?
- What kinds of media are they using in their marketing strategies (TV, radio, print, social media, organic or paid search, etc.)?
- What potential threats do these competitors pose to your business?
Once you have solid answers to these questions for each of your competitors, it is time to ask these questions about your own business. Be honest and provide as much information as you can. With this new information in front of you, you will be able to analyze the data and understand more about those with whom you share your target market — and how your own business stacks up.
CMG Can Help You Reach Your Market Potential
At CMG, we are a group of pragmatic, creative marketing professionals who specialize in real solutions for tangible results. We can provide a comprehensive and inclusive competitor analysis for your company, to take the guesswork out of your marketing strategy. If you have competitive analysis questions, you know who to call.
With our competitor analysis, your business will be poised to establish itself as a market leader in a new business territory and will begin an entirely new trajectory to success. We can't wait to help your business reach its full potential!