For the longest time, marketers have been keeping tabs on what their competitors are up to. Like spies, most have made it a habit to browse through the social media pages and websites of their direct competition in an attempt to stay ahead and refine their own brand communication strategies.
This is just good practice. If a company selling products, experiences or services doesn’t pay at least some attention to what’s going on in their own niche and looks at the wider market, it can be very difficult to pick up on new trends or gauge modern consumer sentiment. Analyzing market rivals and brands selling similar products can be a very simple way to quickly and masterfully pick up on small insights that could have a major impact on a communication or go-to-market campaign’s success.
Surface-level research isn’t effective
As the scene gets more crowded and more brands move online, it’s slowly but surely becoming clear that surface-level competitor examinations aren’t really cutting it anymore.
Hopefully, every good marketer will already know that there’s more than one kind of competitor out there. If this is new information, then it might be time to brush up on some marketing skills, refresh one’s understanding on the types of competitors they should be considering and shake off some outdated understandings.
It’s widely understood today that, to find the insights and tidbits needed to thrive and grow quickly, simply understanding what a competitor is doing just isn’t enough. If a marketer on the hunt for a winning angle only looks at the surface, they will probably end up missing the “why” behind a rival’s market maneuverings. They’ll miss important details that could give their own strategy a real sharp edge.
Surveying the landscape with eagle eyes
A comprehensive competitor strategy makes sure to include all four, and possibly even more, of the main kinds of business competitors threatening the ultimate success and impact of one brand or company in a market. Here’s a quick refresher on what the four types of competitors are, and why it’s important to include all of them in full-on market research:
1. Direct competitors
These are the competitors selling the same kinds of things in the same kinds of ways in the same market locations. For the most part, even ineffective marketers will be looking at these guys. They’re the ones that might show up alongside your business products in a Google search, if their SEO is up to scratch. Looking at their work will give a marketer insights into what kind of messages are resonating and building loyalty.
2. Replacement competitors
Indirect competitors are the businesses offering alternative solutions that might still solve a potential customer’s problem, just in a different way. If a target audience is hooked by their campaign or message, they may end up having no need at all for the product or service you’re offering. Combing through their online presence will give a marketer information surrounding the wider market and perhaps illuminate whether or not a new innovation or trend might end up threatening an established status quo.
3. Indirect competitors
These are very similar to replacement competitors, but are more closely linked to a specific solution. Energy drink makers and coffee sellers are a good example of indirect competitors. If a marketer doesn’t consider these rivals, gaps could be left in an otherwise bulletproof campaign.
4. Potential or replacement competitors
Competitors that aren’t currently threatening a business with alternative product or service offerings should never be left out of a comprehensive competitor analysis. A company should always keep an eye out for potential disruptors. If they don’t, they could be blindsided at a very inopportune time.
Strategies for digging deeper
One of the best strategies to make sure a research phase for a campaign is as good as it can possibly be involves finding every possible rival that could stand in a business’s way. If these four competitors aren’t being considered right now, now is the time to add them in to start looking deeper.
Fortunately, it’s never too late to keep expanding that research scope. It might be too late to add in insights from these potential threats for a current, ongoing campaign. But there will always be another one, and new insights from better research will make them so much more impactful. Once they’re found, don’t just browse their website and social media pages. Make use of intelligent web-based marketing tools to find out exactly where they’re pushing their messages and how effective their campaigns are working.
Look at their customers too. Are they swayed by influencers? According to recent research, up to 69% of customers will trust a recommendation from a well-placed influencer. By studying how and why lesser-known rivals have managed to capture their markets, it might be possible to sway some of their loyal customers to your offering. Now, it might additionally be a good idea to take a deeper look at their target audience using a range of exercises and tools or surveys.
Visuals matter as well. How are businesses replacement competitors drawing a person’s eye and convincing them to open up their wallet? Are they making common mistakes with their programmatic ads? Unpacking the look and success of their efforts could offer up hidden insights.
Leaving no stone unturned
Sometimes, the key to effective communication is just a matter of knowing what else is out there. Sometimes, the insights readily on display through adverts and social posts from competitors can go so much further, and potentially transform an entire company into a thriving powerhouse that consumers love. Looking at more than initially meets the eye will mean more work upfront, but the potential benefits and insights might be monumental.