Regardless of industry, niche, product, service, or customer, every single business has at least one thing in common: competitors. So how does you stack up against your competitors? How do you identify your strengths and improve your weaknesses? Getting a holistic view of the marketplace and locating your place in all of it is as easy as conducting a competitive analysis.
What Is A Competitive Analysis?
Competitive analyses are a market research method that allows you take a step back and get a holistic view of your market and industry. Key players are brought forward, and you can clearly quantify how you stack up against these competitors. Analyzing a completed competitive analysis is an eye-opening process that allows you to begin strategizing how to get your product and service where you want it to be.
Why Should An SMB Want To Conduct A Competitive Analysis?
As a small business, you can learn where you fall in relation to your competitors. Proven benefits of conducting a competitive analysis include better positioning your product or service in the eyes of the consumer, identifying any market share problems, and spending your marketing dollars more efficiently.
If You Are More Into DIY, You Can Conduct A Competitive Analysis On Your Own. Follow The Below Steps:
- Identify a list of competitors. This can be either from previous knowledge or researching companies that offer similar products and services as yours in your area.
- Dig in and research those companies, look at their websites, social media, and other platforms to see what they are communicating to their audience, how they are posting, what their price points are, and more.
- See their product or service in the wild. Visit their storefront or order their product or service to get a deeper understanding of their offering and how it compares to yours.
Digital Hyve’s Approach To A Competitive Analysis
- Our first step in any research project is working directly with the client to outline the objectives of what we are looking to accomplish from our efforts.
- Next, we work with the client to develop a list of competitors.
- We develop a survey with questions about the perception and awareness of competition and/or our client’s product to get a better idea of where we fall in the eyes of the consumer. Surveys consist of questions involving purchase intent, brand perception, and more. For example, perhaps competitor X has the greatest market awareness but our client has favorability.
- We utilize the intelligence platforms that we have to gather data such as general ad spend, the platforms competitors are utilizing, and more. Once we gather data on a handful of competitors, we begin to make generalities of where our client falls in the marketplace.
- We present our findings to our clients inclusive of answers to the set objectives, data we found interesting and why, key takeaways, and recommendations.
While advertising is extremely important to growing market share in your industry, identifying how you fit into the market is the first step in competing with your competitors and boosting the results from your marketing efforts. If you are looking to learn more about this topic, talk to our research experts today!