Have you worried that an open networking event has wasted your time because several of your competitors attended? You can confidently say the event was worthwhile if you know what sets YOU apart from the rest. I’m not talking about your fabulous customer service (isn’t that expected anyway?) or the greatness of your specific product or service rather, what is it that makes YOU different, special, or the best option for a specific clientele.
This information is why conducting
competitor market research is an essential part of an effective
marketing program. Not only is it a great way to assess and size up
the competition, but more importantly, market intelligence helps you understand
the expectations of the people you are trying to attract - - your BEST clients.
Here are three ways competitor market
research will help you stand out in the crowd:
1. Identify the Real Competition
When taking a broader look at your
competitive analysis, it is important to ask yourself, “Against whom am I
really competing?”
Is your competition someone who offers
the exact same services as you or is it someone who offers a different type of
solution? Clients have a finite amount of money to spend. They may or may not
have decided to spend their hard-earned dollars on what you have to sell.
For example, if you own a movie
theater, you are not only competing against other theaters, but also with your
ideal client’s other family commitments (like skating lessons, baseball, art
classes, etc.)
Knowing what it is you are competing
against and the experience your clients look for will help you form an
effective and client attracting marketing message.
2. Leverage Industry Trends
Understanding
industry changes and trends will allow you make more effective business
decisions. It is also a way of positioning yourself as an industry expert able
to better meet the needs of your clients.
Look to the thought leaders in your
industry to see what they are talking about. Follow the sales in your specific
category. If you have a product, you want to know if sales in this market are
increasing or decreasing. If you offer a service, say to dentists, look for dentist
organizations. Then investigate the number of people being trained and working
in that field: is the number increasing or decreasing? This is a great way to
identify trends vs. only looking at the things right in front of us. For
example, just because the dental office in town went out of business does not
indicate the dental industry as a whole is declining.
Following the industry trends and
changes will keep you up-to-date on the latest information and enable you to
share that information with your market and be seen as an industry leader.
3. Find New Opportunity in the Market
Place
Reviewing
the various markets your competitors serve is a great way to discover
opportunities in your market place.
Look for the hungry, underserved market
that would react best to your brand. In Russ Fradin’s article “How to Identify
and Reach Underserved Markets” (http://www.entrepreneur.com/article/207244) he
states, “When you think about your audience based on things like interests,
ethnicities or religions, rather than just demographics, you open up a much
broader range of opportunities... where your message can stand out.” It also
offers the chance to become an expert in this specific market. When you
understand the market’s key challenges, secret desires, fears, and wants,
speaking to it about the solutions you bring is easier and more effective.
One of my clients writes articles,
newsletters, and marketing copy for businesses. She has found an underserved
market she’s passionate about helping in those business owners for whom English
is a second language. This sets her apart from some of her competition and
shows her market she understands their specific challenges and has a solution
to their unique problem.
Uncovering underserved markets provides
opportunities businesses can capitalize upon without always needing to compete.
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