Working on your digital marketing strategy for 2024? Begin with a competitor analysis. Success begins with a strong understanding of the market and your place in it.
Researching what competitors are doing is essential information for your marketing strategy. By looking at your competitors, analyzing how they sell, and monitoring what’s said about them, you’ll also be able to anticipate the market. It will help you to build a marketing plan that engages your audience.
Fundamental Elements of a Competitor Analysis
Competitive analysis research could easily grow into a full-time job, so it’s important to set parameters while making sure the basics are covered.
Start by typing your company’s name or industry into Google. The results page will show you what else people search for under those terms, which could include other companies. It’s these companies that you should look into if they’re not already on your list of competitors.
When you conduct this search, you’ll also see terms related to your business. These could be good keywords to include in your marketing content. These keywords are words that people use when searching for your products or services.
Tone and Brand Voice
Look at how your competitors present themselves. The way content is presented sets the tone and voice. Understand what your target customer experiences from others in your industry.
Building an audience involves providing content that they value. Understanding what competitors are sharing as well as the channels and formats they use is important insight.
5 Essential Steps of a Competitor Analysis
Identify Your Competitors
There are different kinds of competitors to consider.
- Direct competitors: Businesses that offer similar products and services and target the same customers in the geographic area that your business serves.
- Secondary/indirect competitors: Businesses that offer different products and services and target a different clientele, but are in your same general industry.
- Substitute competitors: These are businesses that offer different products and services but target the same customers in your geographic area.
Make note of how each competitor compares with you in terms of size, scope and impact.
Once you’ve identified your competitors, evaluate their marketing to answer these key questions:
- How do their products and services compare with yours?
- What is their pricing structure?
- What marketing channels and tactics are they using to interact and engage with their customers?
- What does their audience engage with positively? Negatively?
- What is their unique selling proposition?
- What are people saying about your competitors’ products and services online and on social media?
Assess Strengths and Weaknesses
Compare the information about each competitor with your own. Where do they shine? Where do you excel? You want to understand their strengths and weaknesses and understand what would make someone choose (or not choose) each competitor.
Define Your Competitive Advantage
With all the information from the competitor analysis at your fingertips, it’s time to figure out what the results mean for your marketing strategy.
Pinpoint your competitive advantage. This is the strength or strengths you want to build your brand image and messaging around.