As a professional online marketing strategist who consults with many corporate companies in the area of online marketing and media, I am pedantic about the importance of competitor and demographic analysis. But what is this?
Briefly, competitor analysis involves the careful assessment of current and potential competitors’ strengths and weaknesses. The main process involves determining who your main competitors are and profiling them and what media plans, both traditional and digital, these competitors are making use of to penetrate the market. Demographic analysis determines who your key customers are and what benefits they expect from your product and subsequently from your online exposure to them.
While many small businesses can’t afford the services of a professional research firm, I tend to insist that research be carried out in this manner when working with bigger brands. Smaller companies can conduct their own market research by recruiting a college student but many often find that the insight that gets delivered far outweighs the expense of a professional market research company. In my opinion, this information cannot be priced. The word “invaluable” comes to mind.
With this information on hand, I begin a crucial part of the online marketing strategy; I analyse the information to determine current industry market share, marketing strategies, and, most importantly, to identify the business’s competition's strengths and weaknesses.
To have a competitive advantage over your competitors and to improve your online marketing efforts you need to understand your customer’s needs and exploit your competitors and industry weaknesses. Your competitors might not like you, but your clients, online users and investors will.
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