Answer to Question #315496 in Marketing for Kathleen

Question

Why is it important to know your consumer, competitors

Answer 1

Knowing who your competitors are, and what they are offering, can help you to make your products, services and marketing stand out. It will enable you to set your prices competitively and help you to respond to rival marketing campaigns with your own initiatives.

Find your competitive advantage and drive brand strategy

Identifying what differentiates your brand, product or service from other players in the industry is one of the main benefits of competitor analysis, and is crucial to increasing sales and building customer loyalty. By understanding the strengths of your brand, recognising your weaknesses and finding your unique value proposition, you’ll know exactly what it is that you bring the table.

Armed with this knowledge, you can communicate your true value to consumers, adapt your brand and communications strategy accordingly and win back market share.

Understand your competitor’s current business strategy

“If you know thy enemy and know thyself, you need not fear the result of a thousand battles”.

Just as it is important to find your competitive advantage, if you know your competition’s movements, weak spots, strengths and marketing strategies, you can ultimately stay ahead of the game. Businesses need to know who their competition is, what they are doing or have already tried to do, in order to discover traits and tactics that they can use to their advantage. Often, a real benefit of competitor analysis is learning what your competitors are doing before trying out something new yourself.

Discover opportunities and gaps in the market

Competitor analysis can help you understand the current frustrations of customers and ultimately uncover new opportunities for your business. By understanding where your competitors are missing the mark, you have a chance to exploit these gaps in the market and provide consumers with an effective solution. For new companies and those looking to expand, by identifying white space or finding a niche you can be assured that you’re not entering an overcrowded market.