The marketing specialists stresse the importance of studying marketing competition and its necessity among commercial companies and business owners in light of the widening of the market and the multiplicity of companies that provide similar services and products.
Therefore, it is necessary to know the competitor and conduct an accurate analysis of his / her work and commercial activity as an essential step to start and continue any commercial project to obtain the largest market share among the competing commercial projects, as It is one of the necessary factors for building a strategy that ensures the continuity of commercial projects and companies alike.
In this article, we will learn the basic steps for analyzing the performance of competitors for your business.
The most important steps of the competitor performance analysis process:
When analyzing the performance of competitors, several important steps must be followed and taken into account to reach accurate results that help to avoid weaknesses and enable competition, which are:
- Identify competitors in the market to analyze their performance: The business owner, the start-up and large companies should identify their competitors in their field of work, their specialization and the companies that dominate the market at the present time, and who are the secondary and indirect competitors that target the same audience, as well as monitoring the potential competitors in order to be ready to compete them.
So, the trade fairs, advertisements, and local business directories enable you to reach them, as well as searching online for products similar to yours, all that are helping you to reach competitors.
- Identify competitors` work to analyze their performance: It is one of the most important steps to accurately analyze the performance of competitors, as it necessitates defining the goals that competitors seek to achieve in the short and long term to anticipate what they want to do. In this way, it is possible to know the prices they set, the tools they used to enhance customer loyalty, the quality of the products and services they provide and the methods of marketing them to customer by looking at their websites, media and advertising activities and their platforms on social media.
- Identify the strengths and weaknesses of competitors to analyze their performance: This is done through the most important reasons why customers deal with competing companies and business owners, and their opinion of the services and products they provide to them. The hidden customer method can be followed, which is one of the most important methods used to collect information about competitors until identifying their strengths and weaknesses points.
A number of marketing companies follow this method by training a number of their marketing researchers on this type of methods to collect data left by competing companies.
- Identify opportunities and threats to analyze competitors' performance:It depends on the strengths and weaknesses points of each competing company or commercial project. This step is essential for analyzing the performance of competitors to face difficulties, their readiness for factors outside their control, and their adaptation to the new market conditions, which they represent the opportunities and risks that they are exposed to.
These opportunities and risks are often like the form of technological developments, regulatory or legal measures, economic factors or new competitors.
- Analysis of competitors' websites is necessary to analyze their performance: Analyzing the websites of companies and business owners is one of the effective tools to know how they communicate with customers and their target audience through the type of content displayed on the site, the way it is formulated, the frequency of users, and the appropriateness of the websites with various technological devices and other information that enables you to know the strengths points of your competitors` websites, and how well you apply those points to your website.
- Identify the keywords that competitors use to analyze their performance: It is necessary to conduct a search for the keywords that competitors rely on in their advertising campaigns and the articles that customers search for in various search engines, and to identify the strategies used to increase access to their websites and the number of clicks, as it is one of the effective ways to analyze the performance of competitors in search engines, and take advantage of them in identifying the appropriate keywords for your business to be searched by your audience in order to build a marketing content for the website that meets the needs of the target audience.
It is also necessary to use keywords when conducting advertising campaigns and building a successful marketing strategy in order to achieve more clicks and visits in the website that leads to increased sales.
- Monitor competitors' performance on social media: Monitoring the performance of competitors in social media is one of the most important things that business owners and companies must do when analyzing the performance of their competitors. It is possible to know the rate of their participation in social media and the type sharing such as (videos, photos or articles) and to discover the extent of their interaction with the public and the methods they used to attract them, as well as to identify the type of social media that have a large number of potential customers for them, such as (Facebook, Twitter, Instagram, etc..). And the timing of competitors' response to customers' questions and inquiries and understand the mechanism of the relationship between customers and competitors through the comments and opinions left by visitors.
- Analysis the competitor performance via e-mail: You can sign up for the newsletter that competitors provide to their customers so that you can analyze their performance and their marketing via e-mail.
It provides you a good information about the frequency of messages, the importance of the content, the offers, and whether their messages can be placed in junk mail.
- Building relationships with competitors: Despite the intense competition with the owners of commercial projects and companies, it does not prevent us from making friends with them, which is useful to know each other and providing some information that may not be obtained, as they are the most experienced people in the field of work.
We often find in exhibitions and conferences an occasion to meet with heads of companies and emerging entrepreneurs, and there may be an opportunity to form a partnership with a competitor to provide certain services in light of the large markets that the companies tend to merge or cooperate with other companies.
It is necessary to know the competitor and conduct an accurate analysis of his / her work and commercial activity as an essential step to start and continue any commercial project to obtain the largest market share among the competing commercial projects.