Understand your competition, increase profit margins, and appeal to ideal clientele.
Start by defining your competition and identifying their core value propositions. Look into competing companies’ marketing strategies and their time in the market. Also, identify your competitors’ strengths and weaknesses.
Place your competitors into different groups based on their market shares, and examine how you compare.
Identify your major competitors, and rank them based on their share of the market. Select the competitors in your top categories, and look into their production patterns for production rate, growth rates, and profit margins. Compare these figures to yours to create a brief of your market standing.
Start by comparing competitor prices. Dig into the quality of your competitors’ products and the products’ strengths and weaknesses. You can get this information if you:
- Take a look at your competitors’ product catalogs.
- Read your competitors’ product reports.
- Visit your competitors’ websites.
- Question consumers for their thoughts about competitors’ products.
Start by looking into the market share held by your product, and analyze how much the product appeals to consumers in comparison to other products. Also, examine the pricing differences between you and your competitors, and investigate the factors that determine customers’ preferences.
Combine the first four different aspects of the market, and integrate the facts to discover hidden trends and make predictions.
Critically examine how the different market aspects — pricing strategies, marketing techniques, production patterns, and customer preferences — influence your standing amongst the competition. Use these forces to make accurate predictions and develop better products to outdo your competition
For example, you can use the strengths and weaknesses of your competitors’ products to work on improving your own product. You can also design your marketing strategy to outdo that of your competition or tweak the price of your product to give customers more value for money.