Competitive Market Analysis

There is a certain form of communication between a company and customers which is called marketing. The main goal of marketing is selling the product or service to current or potential clients. However, it happens, that despite constant efforts business does not manage to be profitable. There are many reasons why startup may fail but one of the most important is the inability to fight competitors. The article will serve as an excellent guide for those who on their way to success need to get familiar with some basis of competitive market analysis.

Competitive analysis is the first step in the marketing struggle

Before conducting competitive market analysis you need to know who competitors are. Actually, it may be any company that offers a similar product or service. Competitor analysis makes it possible for a company to flag competitors in their market and invent the ways to compete against them. First of all, competitive analysis is very important part of the marketing plan of your company.  With the approach of competitive assessment you may find out what makes your product or service more exclusive and, consequently, what actions you need to take to captivate your target market. Competitor analysis is a part and parcel of successful business development and it should be your first step before developing marketing strategy of the product.

Correct information is the key to a profitable business

Analyzing market share and growth rate of the opponents can help you extract very important information about its performance. That is said, competitors with negative or low growth rates can serve as a good source for the growth of your own business and competitors with high growth rates can notify of successful sales techniques. In conditions of fierce competition, accurate analysis and evaluation of the company’s competitive environment allow creating a sustainable competitive advantage of your own product, choosing the right communication channels and reducing operational risks.

So what is competitive analysis main goal?

To sum up, the main goal of competitive analysis of any industry or market is to obtain sufficient information about the strengths and weaknesses of the competitor, his strategy, intentions and opportunities to improve the effectiveness of your own actions. It includes a detailed study of the activities of the main players in the industry. It also comprises the analysis of prices, advertising, and assortment that gives you the opportunity to develop and improve your own marketing plan.

«Marketing Warfare» review

Marketing Warfare kid recommend book to the adults

We start our new column, where wunderkinds recommend books to the adults and first book will be the bestseller “Marketing warfare”  that has been published and remains extremely popular for 30 years now. From the first day of publication, it came into being in 1986, the book became a desktop guide for hundreds of thousands of professionals.

I have read the book on the advice of a colleague’s son whose mind level deserves to be admired. Till now I have no regrets because of time spent on reading this book. After that, all the books written by Jack Trout or with his co-authorship were automatically included in my list of must read books.

The book is written in the original style. This is a pretty good example of the fact, that nowadays original ideas appear at the intersection of rather trivial concepts. As a matter of fact, the book considers the essence of marketing strategies from a military point of view, that turns out to be highly successful. The diversity of tactics and analysis of the true failures regarding the history of large companies captures your attention and does not allow to put the book aside to the last. The book is even more valuable because of its completeness.

Even if I have ever happened to come across decent exemplars among marketing books, they were mostly applied. This book is about strategy, global decisions and choice of direction rather than means.

Great book. It is definitely worth reading if you run the business in a market, where there is the presence of competitors.

P.S. By the way, if you want to recommend me some really interesting books – do not hesitate to put it down in the commentaries to the article.