What Is a Marketing Competitive Analysis?
In the competitive business landscape, no matter how niche a product or service may seem, there is probably another company doing the same thing. If something is working for another company but not for yours, it is worth digging into with a marketing competitive analysis.
A marketing competitive analysis involves researching, evaluating, and comparing competitors’ strengths and weaknesses to better inform your strategy and provide insight for your company's future decision-making. This investigation enables you to gain a deeper understanding of your company’s strengths and weaknesses and can clarify them more effectively. In the same vein, analyzing a competitor’s weaknesses allows you to see where they are lacking and helps you avoid making those same mistakes.
While you may try to navigate this on your own, a thorough competitive analysis is best handled by a marketing agency with the tools, experience, and strategic planning to turn research into intentional action. Intent and direction through an analysis will ensure you see results. Cork Tree offers expertise in making sense of complex challenges and positioning businesses to outperform their competitors. We have a dedicated marketing team whose mission is to help your business grow and thrive. Learn more about the benefits of a marketing competitive analysis and how you can get started.
Benefits of a Marketing Competitive Analysis
A proper, thorough marketing competitive analysis will allow your business to see a variety of opportunities and benefits, such as identifying market gaps, improving customer targeting, tracking competitor campaigns, and maximizing return on investment (ROI). According to recent research, 90% of Fortune 500 companies already use competitive intelligence to gain an advantage. Below, you will find specific reasons why a marketing competitive analysis will benefit your business.
Identifying Market Gaps
There are many moving parts in identifying market gaps within a competitive analysis. Evaluating a competitor’s strengths and weaknesses allows you to see what is working and what isn’t, which can be helpful in seeing what is clicking within the industry. Looking into their products, services, and pricing helps you determine what would be competitive and potentially offer a unique value proposition that your industry hasn’t seen. Knowing the competition’s customer feedback helps identify unmet needs and potentially leverage them to your advantage. Understanding these factors allows your business to get a holistic approach to what can be improved and what is working.
Improving Customer Targeting
Improving customer targeting is essential to attracting potential new business, retaining a loyal customer base, and generating new traffic to your website. Understanding potential customers' needs will help them feel heard, understood, and guided towards solutions. According to recent studies, by providing excellent customer service, 83% of customers agree that they feel more loyal to brands that respond to and resolve their complaints.
Tracking Competitor Campaigns
Tracking competitor campaigns and messaging allows you to get a better sense of your competitor’s digital footprint. Are their campaigns performing well? What is their outreach strategy to customers and clients? These are good questions to ask. Looking into the competitor website analysis and strategy allows you to see their voice and can help you better understand what your brand voice is—and isn’t. Analyzing their social media allows you to see what content works best for them and how it could be improved within your business.
Maximizing ROI
Maximizing ROI is crucial in seeing long-term and consistent growth. By setting a specific goal for outreach and campaigns, you ensure your budget is spent on candidates who are likely to respond and interact, leading to higher conversion rates and better returns on your investment. The more efficient you are, the more of an impact you will make.
Competitor Analysis Framework
In a competitive market, understanding your rivals is just as important as understanding your strengths. This is where a solid competitor analysis framework comes in.
- Competitor Identification: This boils down to figuring out who else is going after the same customers as you and shares the market. Knowing this helps you understand your competition better and gives a better idea of the direction to head in order to stand out.
- Fact-Finding: Gathering data on their digital presence allows you to gain key insights, whether through keyword research into their website, analyzing their target audience through their digital ads, or reviewing their messaging in print media. These are ways to be intentional with your research and apply what you find to improve your business.
- Analyzing Strengths and Weaknesses: By analyzing strengths and weaknesses, you gain direct insight into what your competitors are doing that works, and where there is an opportunity for you to come in and meet people’s needs. If their customers don’t feel heard and understood, it is your opportunity to show up and show them. If your competitor refuses to adapt to new circumstances, it opens the door for you to set your company apart.
- Stacking Up Key Indicators: Stack up your key performance indicators (KPIs) against the competitors; having quantifiable data helps to see what is lacking and what holds up well. Tools such as SEMrush, Meta Ads Manager, and Page Speed Insights give companies an inside look at competitors’ SEO strategies, ad performance, and website speed. This data helps drive more effective decision-making.
- Turning Insights into Strategy: Opportunities emerge when you identify market gaps, address customer needs, and find ways to innovate and stand out.
Competitor Analysis Examples
An example of a competitor market analysis would be comparing one brand’s service pricing to another’s. If the price is significantly higher, see what they are offering. Additionally, if the services are comparable, you could leverage the price difference and the quality of service or product you offer.
If a rival company has a dynamic online presence, do research into the SEO trends and keywords they’re using and where their strategy can fit into your business.
Companies will analyze competitors’ website traffic using tools such as SEMrush to get an idea of how much traffic their website is receiving. In doing so, it helps better understand how visible a competitor is online and identifies which channels are driving their growth.
A company can have a terrific product, but if its customer perception is lacking, it opens up an opportunity to leverage it and set the business apart due to superior perception from the clientele.
Create a Strategy from Your Marketing Competitive Analysis
A competitive analysis will only add value if it is turned into a calculated strategy. If you’re wondering how to do a competitor analysis, know that we take pride in turning raw data from market research into intentional, actionable, and practical marketing plans that drive growth and results. We invite you to connect with us, and we will work together with you to create a strategy that works. Our knowledgeable professionals will conduct a thorough analysis that ensures you stay ten steps ahead of your competition, leaving them in your rearview mirror. If you’re ready to turn intentional strategies into actionable results, book a call with our team to learn about how we can help.
