Understanding your Competitors
When tapping into a specific market, it is crucial that you understand your competitors in that market. Most of the time, there are more businesses than just yours that offer some sort of similar product/service. If this is the case or not, in order for your company to outshine the others you should understand the ins and outs of those competitors.
Businesses that offer the same products/services as yours are considered to be your direct competition. We experience this type of action when their are local stores that offer the same products as your brand but for different prices. It is important to analyze the market you are in. What kinds of people are purchasing your products? Where do they come from? How did they hear about you? Your customers will make a decision about the location, price points, and levels of service when deciding where to buy something.
It is important that you set your brand apart from the others. Do so by offering an unique mix of features that other top competitors are lacking or simply do not have. If you are a company that caters to individuals with an exceptionally high budget, your target market is going to be different from the others. On the other hand, if your company is targeted for the working-class society of people your main goal should be price reduction. Make sure you don’t only pursue the lowest prices. It is very important to keep up with others price ranges so can get more customers!
Indirect competition involves businesses that offer similar products with the same goal of satisfying customers wants/needs. These are often referred to as substitutes. An example of this type of competition would be the retail industry. Everyone has the need/desire for clothing, but choosing which clothing store to go to is the dilemma. Many businesses face this type of competition without them even knowing. Many web developers experience this as there are many do-it-yourself services. A great way to make your brand stand out is to offer special deals that customers can’t get anywhere else.