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5 Ways to Avoid Competitive Surprises
Competitive Review: Sounds pretty basic, right? “Yes, we have a competitor that charges more than we do for pretty much the same product. Our strategy will be to maintain a lower price point and clean up!” – Top Marketing Companies in Los Angeles and elsewhere will suggest there’s lots more to it. There are many metrics on which to evaluate our competition, such as PRICING, POSITIONING, TARGET, PRODUCT, etc…
A competitive review works through all of these vs. your offer, so you are not taken by surprise by how a competitor is operating in your segment and if they come after you!
Your work here will extend beyond competitors in your geographic location to others you might not be familiar with.
If you are selling products or services online anyone that ranks for your search terms should be considered a competitor.
Don’t be shy here – if you are successful in your segment, know that the competition is looking at you too. The top marketing companies in Los Angeles and elsewhere have their clients look well beyond immediate geographical borders for competitive threats.
When doing your competitive review or if you have a top marketing agency do it for you, make sure to…
1) Identify Top 5 competitors (wherever they maybe) – Who’s a competitor? It is a company solving the same problem you are.
2) Compare key marketing elements – product/service benefits, pricing, promotion (website, promos, social media, paid ads)
3) Provide marketing best practices across competitors (with examples of what’s working)
4) Map your competitors on a grid with matrices that make sense for your business, price versus value is often a good one to use
5) Develop a Gap Analysis in grid format comparing key measures you compete on (e.g. pricing) and that help you compete (consumer marketing)
Once completed you’ll have a clear indication where you stack up against your competition that will allow for profit maximization and a clear place for your company to compete effectively.
David is an experienced marketing executive and partner at Custom Marketing. He's run marketing campaigns in the US and across the world, living over 10 years in both Europe and Latin America. His decades of experience building marketing plans and campaigns for companies such as Warner Bros and FOX, allow him to work quickly with clients to get them real results. David has a BA in International Relations from UCSB, an MBA from Boston University and is fluent in Spanish. He lives in Los Angeles with his wife, 2 kids, and his pug Luna.