Sometimes the competition seems insufferably huge and
almost impossible to contemplate. To help you get a handle
on competition, here are 3 things to know and 10 steps to
take to do something about it.
1. Knowing your competition is just part of knowing your
market. Whether you like it or not, competition is part of
every market landscape eventually and it is vital to know
who is on the playing field. Examining your competition
will help you understand your market better and will also
stimulate your creative marketing activity. Just as you
must learn the needs and objections of your customers, you
must learn what competition you are facing in order to know
what to do to succeed.
2. Fighting the competition doesn't help you get business.
In fact it will usually hurt you. In the end, the other guy
is just like you, trying to make his business as successful
as he can. Let your competition do his best, and use what
you know to do yours. Maybe you'll both succeed. Bashing
the competition or getting into price wars hurts everyone
and is simply bad form. Even worse, fighting others can
distract you from the important thing, building and
promoting your own business!
3. Your most important weapon is knowledge. Market research
is homework for being successful. A thorough and realistic
understanding of your market (including your competition)
is what will allow you to take the necessary steps to
outfox the rest of the field. It will help you to position
yourself in the marketplace, put your brand on everyone's
lips, create demand for your products and even price your
products or services properly.
So just who is your competition? Are they in the position
to take your customers? Most importantly what can you do to
compete against them? Finding the answers can involve some
work, but they also may surprise you. You can hire
expensive companies to do this research for you, but here
is a simple program you can do yourself just by paying
attention and using a simple tool like the internet:
1. Pay attention. Watch your mail. Read the paper. Look at
the billboards as you drive down the highway. Listen to
your customers or people you know and notice what they are
hearing about. Ask questions if necessary. Write down
things that you notice, and save promotions that you
receive or think are good.
2. Run a search. Be one of your own customers for a moment
and pull up one of the major search engines like Yahoo or
Google. Put in your main product and see who you find. Do
you recognize the companies? Who is there? Who is not? How
are they getting there? Take notes.
3. Make a list of your competition. By doing the above, you
should have an idea of who is out there. Take stock of what
you are up against. If you are doing business in a certain
geographic area; concentrate on those companies within your
territory. But note that you can learn a lot by looking at
other areas too. Add new competitors as you find them.
4. Find out who they are. Review their websites, starting
off in the About or Company Profile section. Here you will
get an idea of how they present their company and its goals
and purposes. Read about the executives and the company
background, this will give you a feel for whom and what
they are.
5. Check out their PR or News section.There you will find
the latest information regarding new products, personnel,
company changes, etc. What is their positioning? Are they
trying to be the leader in the marketplace? Are they
actually the leader? Are they trying to be different in
some way?
6. Consider how they locate prospects. Where do you see
their promotion? Internet? Direct mail? TV? Other places?
Does it seem to be working? What might they be doing that
you don't know about? How easy is it for customers to
contact the company?
7. Study how they sell. What is their sales process?
Compare it to yours in terms of ease of use and most
importantly, actual sales. Do they sell their goods or
services online? In person? Over the phone? Compare pricing
points. This will be valuable information. Look for
incongruities, for example if a price on a product seems
low to you, does that mean they are losing money on it? Are
they using that pricing point as lure to upsell?
8. Learn how they deliver their products. Many companies
describe their services right on their websites. What types
of products do they sell? What are the specific features?
Is there anything different about the way that they deliver
them? Note how this compares to your products and your own
delivery methods.
9. Compile all the data you have been gathering. Putting
this valuable information on a spread sheet as a comparison
chart or some other simple form will prove to be very
valuable. You will want to update it regularly to stay up
to date on what the competition is doing. It will not only
help you now, but will assist you in predicting what they
might do in the future as well, especially in the areas of
pricing and distribution.
10. Work out your own strategy to compete. Now that you
have done your homework, the hard work begins. Sit down
with your top people and review this information. Get
everyone on the same page and then put together a strategy
that not only outflanks your competitors but positions you
realistically and positively in your customer's minds. This
is not about competitor bashing, but about making yourself
stand out. Make any needed changes in your operation. Put
together a promotional plan and get it going. Increase your
piece of the pie or bake a bigger one!
----------------------------------------------------
Ken Daniells helps business owners and organizations to
increase income and profits using practical, but often
overlooked marketing basics. He is the founder of BOOM!
Ink, a marketing company dedicated to helping small
business owners market effectively and grow. For more free
articles, tips and advice, visit http://www.boomink.com .
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