Competitor research in strategic management and marketing is an analysis of the key strengths and weaknesses of potential and existing competitors. This analysis gives both a defensive and offensive strategic context to identify threats and opportunities. Competitor profiling helps to determine the relevant path for competitive positioning by understanding and measuring the key features of competitor’s products, processes and strategies. It identifies key relationships between the competitor and customers and the importance of those relationships for the competitive achievement. Competitor profiling involves the study of the competitors activities and achievements, which are useful for competitive intelligence. Competitor profiling is a valuable process that helps companies determine their strategic positioning and future objectives.
Competitor profiling includes the process of finding out the key features and processes of competitors. These are essential in making effective decisions in strategic planning. It helps businesses define and measure the key areas of strength and weakness. The process also involves the collection of competitor data and competitor intelligence. Competitor research is based on five basic approaches; supply chain management, market segment analysis, brand strategy, competitive positioning, and search competitors.
The primary objective of competitive intelligence or Competitor Research is to acquire, organize, analyze, and synthesize information from secondary research sources. These secondary research sources include competitor statements, directories, magazines, and trade journals. These secondary research sources are important for building competitive intelligence because they provide insights from the experience of other companies. The primary objective of Competitor Research should be to generate new ideas and build on the proven and tested competitive intelligence strategies. In the past, this type of research used to focus primarily on financial means. However, Competitor Research is now incorporating the benefits derived from social media in the competitive intelligence toolkit.
Competitor Research can also help businesses determine their target market. It can also help businesses develop and test a new marketing strategy. As part of a company’s competitive intelligence strategy, it helps to take a closer look at marketing. Many companies are unaware of the important role that good marketing plays in the success of a business.
To help you further understand how to use Competitor Research in digital marketing strategy, we have included a few additional Pro Tips below. Consult your Competitor Research firm for additional tips and information regarding competitor analysis. Following these Pro Tips will help you increase your business’ exposure to potential new customers and strengthen your competitive advantage.
Create a Digital Marketing Strategy – Integrating a strategic digital marketing plan with your Competitor Research will give your company an edge over your competitors. The strategy should include your overall strategy, competitive position, and expected market share for the next five years. Digital marketing can often be overlooked by many companies. However, the internet continues to dominate the online landscape, and it is critical to your business’s survival that you leverage all available opportunities to reach potential customers.
Pay Attention to Keyword Trends – Analyzing current trends and using them to create a strategy can be a valuable tool. When you are comparing your competitors, pay close attention to what keywords they are using. Use the keywords in the copy, on site content, social media, and in ads to help you better position your company to meet the needs of your customers. Your competitors may also be taking advantage of keywords that you are not using, so make sure you stay on top of industry trends.
Investigate Your Competitors – Start by requesting information from your competitors to understand their market share, spending habits, customer base, and key strategy initiatives. Look closely at how they are positioning themselves to compete in today’s marketplace. Learn where your competitors are focusing their marketing dollars and learn how you can compete with them and gain market share without investing additional resources.