Competitive Marketing Analysis
Competitive Marketing Analysis - What
and Why is It Important
by Matt Bacak
The keyword in this phrase gives us a hint
"competitive". The competitive marketing analysis is an in-depth study
of your business's competition and the markets available to you in order
to ensure your advertising and public relations budget dollars are spent
where they will be most effective. In order to perform strategic planning
for your firm's future, it is imperative to know who the competition is
and exactly what you are up against to ensure that your market share is
sufficient for your firm's future. Increasing market share is the goal
of any competitive marketing analysis.
Identifying the Competition - Who is the
competition and how can they be located? Since you know exactly what products
or services your firm provides, you can locate your competition by identifying
other producers or providers in the same market that you supply. This is
not a difficult task; it does, however, require some research. Competing
suppliers are not hiding; they advertise just as your firm does.
The yellow pages of your local telephone
book can be the starting point for competition identification. Research
the Internet searching for press releases and publications which use descriptions
similar to your products or services. Government agencies, Dunn and Bradstreet,
business magazine features or employment of a private research firm can
reveal a great deal about your competition and how they operate.
Shop Your Competition - If you want to
know first-hand about your competition, shop with them. For example, if
you are in the restaurant business, eat at local restaurants that are similar
in price range and clientele to your establishment. If you are a plumbing
business, have someone contact the competition and learn prices of service
calls and specific products. Knowing as much about the competition as possible
allows your marketing analysis to include details rather than generalities.
Unbiased Comparisons - In order to truly
analyze your firm's strengths and weaknesses, you need unbiased sources
willing to compare your firm and the competition. You can employ market
researchers, use surveys, form focus groups to obtain completely unbiased
opinions on what you are doing right and wrong and how your competition
stack up to your business.
Measure your strengths and ensure these
strengths are maintained or improved upon. Identify your weaknesses and
create a plan to improve those areas significantly. After you implement
your plan, go back to your unbiased researchers and obtain another comparison
to ensure that your implementation of your strategic plan has been effective.
Market Analysis Contributing Resources:
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