Identify your competition
Identifying your competition involves refining any market research you may have already gathered and supplementing it with further research that can help to develop your awareness of the trends driving the marketplace.
To further your understanding of the market, you need to find out who your competitors are, what they are doing, how they are doing it, what their pricing structure is, and who they are pitching their message to.
Pay close attention to:
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product |
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pricing |
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promotion |
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distribution |
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innovation |
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staff numbers |
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quality of service |
This information will help you decide whether to try and offer lower prices on a similar service, pitch your service as a higher value item, or find a niche market that has been overlooked by your competitors.
Sound knowledge of your competitors will help you to:
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make your service and marketing stand out |
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understand current market rates for similar services |
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respond to their marketing campaigns with your own initiatives |
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learn ways to improve your business performance |
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create a marketing strategy that exploits their weaknesses |
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be realistic about your potential for success |
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assess the threat posed by new entrants to your market |
Know your competitors' position in the marketplace
You can also learn a lot about your competition by gauging their presence in the market. Monitor your competition's appearances in the local news media, advertisements, events they may sponsor or their marketing literature, websites and newsletters.
You need to be constantly on the lookout for new competition and be aware of directions taken by existing competitors.
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