There are a lot of things involved when it comes to running a smooth business. Doing a competitor analysis is the most important one. When starting a business, you tend to decide what resources to use and how to assign work to different employees. In addition, you may run a SWOT analysis in order to find your company’s strengths and weaknesses. At the same time, this analysis may help you identify the threats and opportunities to your business. As a result, it provides you with a marketing strategy to run your business.
But, all of these things are for your company. You need to do competitor analysis to analyze what other similar brands are doing. In other words, competitor analysis can help you find out the strengths and weaknesses of your rivals. With the help of competitor analysis, you can develop a marketing strategy to outshine your competitors.
What is a Competitor Analysis in Marketing?
As the name suggests, it is a strategy that helps you analyze your competitors. In competitor analysis, you can research the marketing strategies, products, and sales of your rivals. Doing so can help you create a strong strategy to outclass your competitors. It allows you to learn how your rivals work in such a competitive environment. You can learn the ins and outs of your businesses. Most importantly, it can help you determine the opportunities where you can out-perform your competitors.
A competitor analysis can ensure your product or service meets the industry standards. In every market, there is more than one company having similar products offering to the same category of customers. All you need is to run a competitor analysis to determine the success story of main market players. Apart from that, you can identify the resources that can help you dominate the market.
Determining Your Competitors
It’s important to determine your competitors when conducting an analysis. Here’s what you need to consider when determining your competitors.
Range of products and services
First of all, you need to determine the range of products or services your competitors offer. Remember, someone offering a substitute product is considered to be an indirect competitor. Therefore, you need to distinguish between direct and indirect competitors by looking at the range of their products and services.
Company’s target market
You need to identify the target market of companies. It can help you determine whether they are your competitors or not. If the company offers the same product or service, it’s important to determine its target market. A company targeting a different market segment may not be your competitor.
When the geographic area becomes the same, any company offering a similar product or a substitute is a direct competitor.
How To Conduct Competitor Analysis
Here’s a step-by-step guide on how to conduct competitor analysis.
Know your competitors
Knowing your competitors is the first step when it comes to conducting competitor analysis. For that reason, you must determine your competitors to compare the data accurately. It’s important to distinguish between direct and indirect competitors. Direct competitors offer a similar product or service, and they operate in the same geographic area. On the other hand, indirect competitors do not operate in the same geographic area and they offer products that are not the same but could only satisfy the customer's needs. All you have is to focus on your direct competitors when conducting analysis.
Analyze the products or services your competitors offer
You need to determine the products or services your competitors are offering. Most importantly, analyze the complete product line of your competitor. Apart from that, consider the pricing and discounts they offer on their products or services.
Research your competitor’s sales tactics
You should never overlook the sales tactics of your competitors. We understand how tricky it can be for you to run a sales analysis of your competitor. What sales process do your competitors use? What channels do they use to sell products or services? All you need is to track down answers to such questions to get an idea of the sales process.
Analyze your competitor’s product marketing process
When conducting competitor analysis, it’s imperative to analyze how they market their products or services. For instance, do they create ebooks or whitepapers? Do your competitors have a podcast? In addition, consider whether they post webinars or not. In simple words, note down each and everything they use to market their products.
Focus on their social media presence and go-to platforms
You need to evaluate your competitors in terms of their social media presence and other go-to platforms. How do your competitors drive engagement on social media platforms? Which social media marketing do they use to target the audience? In addition, make sure to get on the same page before it gets too late. Remember, your competitors may already be increasing brand engagement through social media. It’s the right time for you to start a social media marketing campaign to outshine your competitors.
SEO Competitor Analysis
As the name suggests, SEO competitor analysis is a process of researching the elements that play a crucial role in search engine optimization. In other words, it is an SEO comparison between competitors who work in the same industry. There are many things you need to consider when it comes to SEO competitive analysis. Here are some of the things you should never overlook:
- Backlink analysis
- Content analysis
- Keyword gap analysis
This kind of competitor analysis is very efficient because it helps you look at the strategies other competitors are using and apply them to your own SEO strategy. As a result, there is no need to start your research from scratch.
What does competitor analysis mean?
It is a process of identifying your competitors and analyzing their strategies. With the help of competitor analysis, you can evaluate the strengths and weaknesses of your competitors. There might be an opportunity for you to outshine the competitors.
What’s the difference between direct and indirect competitors?
Companies that sell a similar product or service in the same geographic area are known as direct competitors. Indirect competitors may sell products or services in the same category as you, but it’s only a substitute for your product/service.
What is the best SEO tool for competitor analysis?
There are many best tools for SEO competitor analysis, such as Ahrefs and SEMrush. These tools can help you evaluate the performance of your competitors and determine the keywords they’re ranking for.