Every business has competitors of one sort or another. It doesn’t matter if you are a large corporation or if you are an individual running your independent business. There are similar businesses surrounding us.
You may think that it is no big deal what your competitors are doing. However, there are many advantages for knowing what your competitors are doing in their business.
So why is it important and what is the advantage to you in your business? Let’s look at a few reasons.
* One of the first things you want to know is if they are a direct or indirect competitor. The difference is the direct competitor will have the exact same product or service that you do.
Indirect competitors don’t offer the same service but perhaps offer a similar service that would also solve the same problem.
Most businesses probably focus on the direct competitor. However, there could be indirect competitors that could make an impact on your business. So do not discount them.
Why does it make a big deal? It will change how you market yourself to your customers.
* Another thing to understand is who your competitors target market focuses on. Is there a specific age group? Is there a specific practice or type of products that they focus on? Do they market specifically to a person, like a housewife or female?
Understanding this will also mean you need to understand how you can differentiate yourself from their marketing practices. What niche can you expand into?
* Look at what your competitor does well. Are they strong in a certain marketing aspect? Do they offer benefits and value for buying from them? Do they have exceptional customer service? Maybe they do very well on social media marketing.
By looking at their strengths you can identify your weaknesses and work on correcting those areas.
* Since we looked at with the competitor does well, also look at what they don’t do so well. Not everyone is exceptional in every aspect of their business. Revealing weaknesses, such as poor customer service, or only targeting specific industry, will allow you to take advantage of that weakness in your marketing and business appeal.
* Make sure you look at all aspects of their business and where they do business. Do they use social media marketing? Do they use local advertising? Are the members of Chamber of Commerce?
What seems to be working best for them could be an indicator of an area of marketing that you need to step up on yourself.
Studying your competitors and knowing them well could help strengthen your own business and marketing procedures. Don’t discount what you can learn about others to improve your own situation and business.