Before new small businesses start handing out pamphlets, owner should not only know a thing or two about their target market, but also a bit about who else is targeting that market.
Mark Cuban, for example, who’s well known for his role on “Shark Tank,” sums up the importance of competitive research. “Make your product easier to buy than your competition, or you will find customers buying from them, not you.” In other words, put the customer in a position where they can’t refuse your product.
It goes without saying that competition drives innovation. While your goal is to ultimately be the best best, as a business owner, you simply cannot build a suitable business without competitors consistently trying to improve their business as well.
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To see if your marketing strategy would work, consider what your competition is using as their primary message in terms of value proposition. Look at the visuals they use, slogans you hear, and icons you see. This will give you a better understanding of how your competitor communicates with their consumers. You shouldn’t try and copy what your competitors are doing but instead, use it as a guide.
For instance, if your competition for some reason hasn’t made their way online, take advantage of that opportunity. Start a blog on social media, put videos on Youtube, since it provides a free way to distribute creative promotional videos, and even consider SEO for your company. This will also help with promoting not only your business, but your website as well.
Consumer rating and feedback. In order to learn more about the strengths and weaknesses of your competitors, look at their consumer rating and feedback on various rating sites like Bing Local, Google Review, Yelp, and Yahoo. These sites are similar to local directories where people share their experiences interacting with the business. While you’re looking over these reviews, make sure you create a profile on these sites as well for your business, if you don’t already have one. This will show you what your customers really think about your