In an article for BusinessWeek, Beth Goldstein, president of Marketing Edge Consulting Group, says that properly defining your competition can help you understand what sets you apart from them. To figure out who your competition really is, Goldstein suggests asking these questions:
- What needs do my products or services fulfill?
- How else can my current or potential customers have their needs met?
- What companies fulfill this exact need?
- What companies fulfill a similar need?
- What do customers like about their current options?
- Are there gaps in the solutions that other companies offer?
- How loyal are customers to their current options?
- If switching is a challenge, are there improved benefits that my company offers that will help battle inertia?
Next, identify several businesses that offer competitive or substitute products and services and find out what benefits they offer to your current or potential customers. Now, compare your message, value proposition and target audiences with theirs. Based on the assessment, develop a few ways to position yourself effectively against them.
Source:
BusinessWeek: Determine What Sets You Apart From Your Competition
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