Market and Competitive Analysis is the Key

Whether you own an existing business or are establishing a new business, understanding your competition and the potential within your market is the most critical component of growing or establishing your business.

For existing businesses, an assessment of your competitors should be completed from an object third party view on an annual basis. How do your competitors market and advertise versus your marketing program? What is their pricing structure for their products/services versus yours? What are the competitive advantages they have over your products/services and vive versa? Understanding these strategies and more will allow you to revise your sales strategies, let alone your marketing efforts. Changing and modifying your marketing strategy not only saves costs on wasted pursuits but also drives revenues as sales are the most critical part of your business.

For new businesses, the some principles apply. The key difference: when starting from scratch is that you need an in-depth analysis versus the head start in going head to head against existing competitors. The Competitive Analysis is separate from the Market Analysis, which would assess the size of the market, the potential for penetration this is in the market overall and how much of the market you could seize.

Until you understand these factors, including how competitors advertise and market, how can you establish a marketing plan? The answer is simple: you can’t। A great business plan starts with a great Market Analysis and Competitive Analysis. There is no point in starting forecasts, let alone the business plan, until you address this area first.

We offer a free consult tim@thebusinessplanconsultants.com on your business whether it be for a marketing analysis, a marketing plan, a competitive analysis or anything else.