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Leveraging Competitor Analysis for Better Marketing

Right now, understanding your competitor's strategies is more important than it has ever been. Today, we delve into the crucial elements of understanding your market positioning and influence through a competitor analysis. We’ll explore some vital concepts, and I’ll offer a comprehensive insight into how we conduct a practical competitor analysis for your business or organisation.
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Listen to the podcast or read the edited, short transcript below:

Today, we’re going to assess your competitor’s marketing strategies – and take a look at their ‘Share of Market’ and ‘Share of Voice’ in particular – these are critical metrics in marketing that help businesses understand their position and influence within the market.

What is your Share of the Market?

Share of Market refers to a company’s proportion of the total sales in a specific market over a certain time period.

This is going to indicate the level of demand for a company’s product or service in comparison to all competitors. It directly reflects a company’s competitive position and popularity among consumers. 

What is a Share of Voice?

Your share of voice is a metric that’s traditionally referred to a brand’s percentage of total advertising in a market, but in digital marketing, it has broadened to encompass all types of brand mentions, engagements, and impressions across various channels, including social media, content marketing, SEO, and more.

Share of voice essentially measures the visibility and impact of a brand’s marketing and advertising efforts.

This KPI will help your brand understand its prominence in the marketplace and consumers’ mindshare. 

How to Perform a Competitor Analysis?

When working with clients, a competitor analysis is an essential portion of our research. It encompasses a large amount of the strategies that we set with clients, as it helps us to understand various factors in your business’s landscape.

From there, it allows an external team like ours to provide a more comprehensive overview of the tactics required to build your strategy overall.

Regularly assessing your competitors will allow your brand to pinpoint market gaps, innovate by developing new products and services, identify emerging market trends, and enhance marketing and sales effectiveness. 

These insights collectively pave the way for a brand’s success. 

Therefore, incorporating a comprehensive competitive analysis into your marketing strategy is a vital step towards understanding your market landscape and improving your brand’s performance.

Here are some key factors that we suggest you monitor, analyse and add to your strategy right now:

Identify Your Competitors:

Understand who your direct and indirect competitors are.

Direct competitors are this that offer a product or service that is similar to yours.

Indirect competitors don’t offer the same products or services, however, they do work with the same type of customer.

Keeping an eye on both of these competitors is essential as an indirect competitor could become a direct competitor or market shifts could happen at any time – so if you’re not on top of where your competitors are heading, you may miss the boat.

Examine Your Competitors’ Product and Service Line

Gain insights into the range of products or services your competitors provide. 

Explore their websites, check their online catalogues, or visit their physical stores. 

Ask questions like:

  • Do they position themselves as a budget-friendly or premium provider?
  • Do they primarily focus on bulk sales or individual transactions for e-commerce?
  • What percentage of the market do they currently have?
  • What traits and requirements define their target consumers?
  • Do they apply varying pricing tactics for digital purchases compared to in-store sales? 
  • What sets the company apart from its competition? 
  • What are their methods of product or service distribution?

Investigate Your Competitors’ Sales Strategies and Outcomes

Understand how your competitors sell their products, their sales channels, and the results they achieve. 

This can be tricky information to get, but it can also be very powerful.

Answer questions like:

What’s their sales process?

  • How do they sell? Through what channels?
  • What advantages do they have? Large stores or multiple locations, or large team?
  • Are they discounting their services often?
  • Do they use a sales team?

You can find this information from your customer or clients that have started coming to you from your competition. Why did they make the switch?

Become a customer at your competition and experience their sales process first-hand – this is much easier to do as an alias on a website.

Evaluate Your Competitors’ Pricing and Additional Benefits

Study your competitors’ pricing structures.

Is there a gap for more affordable options in your market? Are customers looking for a higher-priced product?

Research and look into the additional benefits they provide to their customers.

They may offer warranties, no contracts, and risk-free trials. Then if it fits with your brand, consider matching – or beating – these perks with your incentives to lure new customers.

Scrutinise Your Competitors’ Marketing Techniques

Assess how your competitors promote their products or services. 

The best way to do this is to check their website to see where they place their efforts.

  • Do they offer lead magnets?
  • Do they have an FAQ section?
  • Are Case Studies and testimonials prominently displayed?
  • Look at what advertising they are running both online VS offline.
  • Do they use videos?

Assess Your Competitors’ Content Strategy

Once you see what they’re doing – look at how much effort goes into each route.

Let’s say a competitor runs Facebook Ads, see whether it’s just one ad, or are they testing multiple versions (which shows a significant investment).

What was the last article published on their website? Is the content up to date and accurate?

Are there spelling mistakes and grammatical errors? This could tell you that insufficient thought was put in – which is a surefire way to see if it’s not working.

Are they investing in custom images and videos on social media – or opting for quick wins using stock images?

If you review the type of content your competitors produce, their content themes, and the frequency of publishing – you’ll get an understanding of the content that’s working well and areas in which you can take the lead.

Measure Engagement on Your Competitors’ Content

Determine how well your competitors’ content resonates with their audience by analysing metrics like likes, shares, comments, and time spent on their pages.

There are heaps of tools that you can use to get this info – like like BuzzSumo or SimilarWeb.

You’ll want to see if their audience resonates with specific content better than others. What was it? Why do you think it resonated? What can you do better?

Analyse Your Competitors’ Social Media Strategy and Preferred Platforms

This moves nicely into a study of your competitors’ presence on different social media platforms.

Look with an eye on the strategies they use and the platforms they focus on.

What platforms are they using? Is the content that they post there well-liked and engaged with?

Are they sharing original content or re-sharing other articles? Are they focusing on community-building content or sales-focused content?

Do they interact with their commenters? Or do they post and ghost?

Collecting an overview of this data will give you a good insight into the platforms that resonate best for them as a business, along with their audience.

Conduct a SWOT Analysis of Your Competitors

Strengths, Weaknesses, Opportunities, and Threats. 

Using this analysis on your competitors allows you to gain a holistic understanding of their strategic position. Start by asking these questions:

  • What are they doing well? What not so well?
  • What’s their weakest area and what’s the area they have an advantage of you?
  • What could THEY do better?
  • What areas of them do you see as a threat?
  • Have they identified any new opportunities in your market that you haven’t considered?

Why Perform a Competitor Analysis?

That should provide you with a solid start to researching your competitors.

Now, more than ever, due to the current economic uncertainty, understanding your share of the market and share of voice can provide insights into the effectiveness of marketing strategies, despite tightened budgets.

A well-crafted and clear strategy will help you identify where to allocate potentially limited resources for maximum impact and maintain or improve brand visibility even when overall spending may be reduced.

Keeping on track, on brand and always moving 1% closer to a larger share in your overall market.

And this is why having your marketing strategy include a competitor analysis is so critical. 

It can sometimes present unique opportunities for your business and show an understanding of the gaps in the market that competitors cannot cater to due to financial limitations, allowing your business to fill the void and stay ahead.

Your competitor analysis strategy could also uncover and highlight cost-efficient marketing techniques that competitors are utilising effectively, which your business can adopt to maintain its visibility without straining the budget. 

Or even better, you can 10x your competitor’s content and strategy for a more significant percentage in market voice.

A well-crafted competitor analysis when facing budget constraints will equip businesses, like yours, with the insights necessary to make better strategic decisions, optimise your resources more efficiently, lessen risks, and also seize unique opportunities for sustainability and growth.

If you need assistance building your competitor’s analysis – it’s a core part of what we do.

Before working with a client, we always ensure that we genuinely understand their business and their place in the market and analyse the tactics they need to adapt to stay ahead.

You can find more details about our marketing process on our website, or feel free to send me an email and we can see if we’re the right fit for each other.

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