Importance of competitive market research
Why competitive market research is important
Competitors are the reason a company always strives to enhance its strategies. It is always good to have a competitive edge over other companies in your industry. This article talks about why competitive market research is important and how it helps a business.
- Product differentiation
Competitive research will help you differentiate your product from your competitors’ product. You can understand a better overall picture of the market and how to position your product viz a viz your competitors. Every company wants to set itself apart from its competitors, the only way of doing so is performing in-depth competitive market research. You can communicate your USP (unique selling point) in such a way that your customers remember you.
- Filling the gaps in the market
You get to know the strengths and weaknesses of your competitors which helps in exploiting their weaknesses and positioning your product in an effective way. By doing competitive research, you find areas that your competitors are neglecting, and you can serve those areas. You find new opportunities to earn more revenue for your business. By spotting your competitor’s weaknesses and gaps in the market you can explore new markets for your products and services.
- Making strategies
Performing a competitive analysis helps decision-makers to formulate strategies for the future. You discover where you stand in the market. Knowing your position helps you to get better by taking immediate steps. Competing with a company in the same industry motivates you to do better and make powerful strategies. Competitive market research especially helps in making marketing strategies. You can do competitive research regarding which social media platform they are using for marketing campaigns, which SEO practices they are doing, how they are targeting the customers, and more. Marketing campaigns are a major part of selling any product and analyzing what your customers are doing is essential.
- Learning from the mistakes of others
By analyzing what your competitors are doing and what they’ve been doing in the past, you get to know where they were successful and where they failed. With this information, you can understand what they did wrongly and avoid making those mistakes. Additionally, learning from their successful campaigns can also be useful for you. The data analysis of metrics resulting from a competitor’s successful and failed campaigns can help a company in making forecasts for the future.
Some questions that you can find answers to are:
- What type of customers are they targeting?
- How is their product unique?
- What are their pricing points?
- What social media are they using to communicate their message?
- What is unique in their website?
- What type of content are they putting out?
- What are the customers saying about them?
- How is google ranking them?
- What is their order taking process?
And other similar questions like this. You can use third-party tools too like Google AdWords, Keyword Planner, SEMrush, SpyFu, Owletter, and SimilarWeb to enhance your competitive research and give you the metrics and reports you are looking for.
The importance of a competitive analysis cannot be emphasized enough. To keep the attention of your consumers, you need to outperform the efforts of your competitors. Competitive research helps you to do that. The dynamic business world of today presents a lot of innovative ways to make new strategies and challenge your competitors. Analyze what your competitors are doing and where you are lacking behind. The biggest advantage of a competitor analysis is that you get to know your strengths and weaknesses with respect to your competitors. Then you can leverage those strengths and improve your weaknesses to stand out from your competitors. Keep making powerful strategies and growing your business.