Katie Floam-Greenspan is President of Pomerantz Marketing , a full-service B2B agency supporting local, national and global small and medium-sized businesses.
Successful B2B brands put their customers first, and that's right. Because without a growing customer base, brands will struggle to build and maintain a successful and sustainable business. However, brands shouldn’t ignore the other part of the business success equation: competition.
Competitive analysis, the process of identifying competitors and examining their products, tactics and communication strategies, allows brands to better understand the competition while positioning them for success.
This doesn’t mean brands should forget what they ’re already good at. In contrast, competitive market research contextualizes its offerings to identify ways to differentiate rather than imitate.
Let's make it more personal.
The goal of competitive analysis is not to copy what your peers are doing. When implemented effectively, competitive analysis provides opportunities to develop original marketing strategies that highlight the unique value proposition of your product or service.
Here are three things every B2B brand can learn from competitive insights that will help them improve their marketing in 2024 and beyond.
1. Positioning of products or services
Many products or services appear to be revolutionary in development. Of course, the promise and potential are very different from the actual impact on consumers.
Competitive analysis helps brands understand how their product or service actually compares to the broader market and identifies differences that help highlight product advantages and improve their value proposition to potential customers.
At the same time, a competitive analysis can highlight areas where a brand's product or service may be deficient and identify necessary improvements before the product or service reaches customers. Therefore, understanding competition plays a critical role in research and development, guiding development initiatives that maximize product differentiation and maturity.
In simple terms, competitive analysis helps brands better understand where they are doing well and where they need to improve to maximize the chances of marketing the best products or services.
First, identify five competitors of your brand. Three may be primary competitors, products and services that are very similar to your competitors, and two may be secondary or indirect competitors. These companies may have similar offerings but different audiences.
The goal is simple: use competitive intelligence to determine your brand's current position and develop a strategy for its development.
2. Sales tactics
An attractive product or service at a competitive price that is able to solve the company's problems offers good growth opportunities. However, if B2B buyers are unaware of its existence, its growth potential and market reach are very limited.
This is where marketing and sales come into play. Marketing moves prospects into the sales funnel and sales tactics convert prospects into customers. Just as you can examine your competitors' product or service features to optimize their differentiation and maturity, you can also evaluate your sales tactics to identify the strengths and weaknesses of your existing sales model.
Additionally, understanding your competitors' pricing models, channel optimization, and customer retention practices provides opportunities for differentiation.
To optimize and improve your marketing efforts, ensure that your sales and product messages match their impact on your target audience and potential opportunities for improvement or innovation.
3. Content and channel recommendations
The best B2B brands master customer preferences for omnichannel experiences.
In fact, a McKinsey & Company study found that “customers expect “more” from omnichannel: more channels, more convenience, and more personalized experiences.
Competitive analysis helps B2B brands understand how other companies are using the channel, go beyond channel volume, and better understand channel tactics.
Analyzing your competitors' content strategies and channel usage can reveal market trends and gaps, including new or emerging digital channels that other brands have not yet mastered.
Analysis conducted by McKinsey found that “customers are increasingly willing to switch service providers to get a great omnichannel experience,” presenting an opportunity for brands ready to capitalize on this sentiment.
Start by defining your goals. What do you want to know about your competitors’ use of the channel? Combine this with a strategy to review and analyze their content, taking into account which channels are used most, differences in user experience between channels, and opportunities for improvement that can be applied to your brand.
Good research produces better products
Every brand can benefit from an annual competitive analysis that ensures every dollar – from research and development to marketing – provides maximum value and contributes to company goals.
First, set clear goals and collect comprehensive data, including information from websites, social media, customer reviews, press releases, and industry reports. Then assemble a team of in-house experts or hire a research partner to conduct a detailed analysis of its product offerings, marketing strategies and sales tactics, with a focus on identifying strengths and weaknesses.
Finally, apply strategic insights to clarify and improve your brand's market position, product, development and marketing strategies. This is an ongoing and evolving process. This is also key to staying ahead of your competition and customers, which is why it's a priority worth pursuing now.
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