Performing a Simple Competitive Analysis
(Page 1 of 3 )
Marketing, in its purest form, is based on a thorough understanding of the arena in which your brand competes. That understanding enables you, as a marketer, to successfully promote and sell.
Successful marketers understand their markets, competitors and customer wants and needs. That understanding gives those marketers an opportunity to be competitive.
Identifying and analyzing your direct competition is an important first step prior to making a decision about your marketing strategy. It’s vital to the success of a brand because it reduces risk, time required, resources and expenses.
Picture your competition as a series of concentric circles, like a target with a bulls-eye in the middle. The bulls-eye represents your direct competitors and moving outward from the center the competition grows less direct.
Bull’s eye, center of target—the specific businesses in your marketing category that offer products interchangeable with your brand in the customer's view. For example, if you market a regional brand, you may compete against the other regional brands within a 5-state radius.
Second ring—competitors offering similar products in a different category or who have achieved less significant distribution. Using the example of a regional brand, a product that can be substituted for yours is also your competitor, as is a major national brand. None of these competitors provides exactly the same product as you, but they may be winning lucrative portions of your business.
Third ring—competitors who compete for "same-purpose" dollars. To the degree that your regional brand, perhaps a beer, is a refreshing product, third-level competitors might be companies that provide other types of refreshment; competitors might be marketers of wine, wine coolers or other alcoholic specialty beverages.
Carefully consider, from the customer's point of view, all the alternatives there are to buying your brand. Knowing that, you can assure your brand provides real or perceived advantages over your competitors, beginning with those who market brands that most directly compete with yours.
More Website Marketing Articles
More By Jase Dow