How to do competitor analysis
Competitor analysis is an essential part to get success in digital marketing. Identifying competitor USP and SWOT analysis will help you to stand out from the competition.
How to stand out from the competition:
Offline Example –
Imagine you own a shop. What would make your brand distinct compared to other shops selling similar products?
Maybe your shop’s exterior is painted in bright red, or you have an eye-catching window display, or perhaps you’ve even hired someone to shoot some hoops outside to grab people’s attention as they walk by.
Similarly, you need to do it the same for online marketing as well.
How to configure business USP:
When we identify what makes us different from the competition online, we call that our Unique Selling Point, or USP.
A Unique Selling Point is a clear statement that describes the benefits you offer, how you might solve your customer’s needs, and what distinguishes you from the competition.
4 key questions to ask yourself when defining your USP are:
- Who is my target audience?
- Who are my competitors?
- What problems does my target audience have?
- How can I solve them?
Once you ask these questions, you can piece together a concise statement that incorporates the answers. Here are a few pointers to remember.
- Speak in a human voice. Be as natural and relatable as you can and remember, you are trying to attract people, not robots.
- Shout about it. Your USP should be displayed on your website, social media, and other marketing materials. A good USP won’t appeal to everyone, but that’s ok. Build a USP that is tailored and speaks directly to your target audience.
SWOT Analysis Technique:
SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. First, find your strengths and weaknesses. Use a SWOT analysis on competitor websites, which will help ensure business marketing collateral are well informed.
Strength – What are you good at.
Weakness – What can be done better
Opportunity – What needs to change and improve
Threats – What could happen if things don’t go accordingly.
How to build your business USP:
Check on a competitor – While constructing your USP, it’s a good idea to check what the competition is up to. When starting a competitor analysis, make sure to utilise the free tools available online. Start with search engines, which can offer the most immediate answers.
Simply search for your key terms and make note of:
- who appears in the top results on search engines for your product or service
- which keywords appear on their website, that is, what words are they using in the page titles on their website, and
- what messaging they use on their social media.
Another way to stay up to date with what competitors are doing is through signing up to alerts systems. Free tools like Google Alerts show you who is talking about certain topics online, so they help you keep your finger on the pulse. Try setting up alerts for key products or services, as well as your own business and competitor names. You’ll then receive notifications when the terms you enter are discussed online, and be able to see how your business or the business you work for compare.
Let’s take a look at how these tips can be applied to help you stand out online:
So what makes you different online? Use the tips from this lesson to find out what your competition is doing, and use a SWOT analysis to identify what makes you stand out.
Recap of this lesson:
Understanding the competition is a key component of your online strategy, enabling you to position a business correctly in the marketplace. In this lesson, we’ll explore:
- how to identify what makes a business stand out in a busy marketplace
- why Unique Selling Points (USPs) are important and how to construct them
- online tools available to help you research the competition.
Digital Marketing assignment of this lesson:
Bikas owns a Digital Marketing training institute in north Kolkata, which has been running for 2 years offline.
His institute is popular among people, but the institute has not seen much growth in recent months. Bikas would now like to break into the online market to boost product sales.
Which of the following actions should Bikas take to identify opportunities for online business growth?
Click one or more tags to define a search
- Hire a financial planner
- Identify a USP
- Ship to new countries
- Build a SWOT analysis
- Distribute feedback forms to suppliers