Does competitor analysis make sense?
Posted: Sun Jan 26, 2025 3:32 am
I am convinced that each of us has heard the phrase at least once in the past: “do your own thing, don’t look at others.” In my case, these phrases came very often from my parents or university professors. They shaped my outlook on life: they taught me to be assertive and non-conformist. They made me realize the importance of having my own opinion. I would list almost all areas of life, professions, for which the above-mentioned advice would be relevant. Almost all, because they are not at all applicable to business… So, paraphrasing the above statement, one might ask: why is it important to look at others in business? Having a lot of knowledge about the competition increases our chances of success in a given market. Although I find this answer very convincing, there are still many young entrepreneurs who downplay the importance of competitor analysis. What exactly can they learn from companies in the same sector?
TARGET GROUP
The target group defines the potential recipients of our products or services. Knowing the common characteristics of our customers allows us to modify the characteristics of the products and apply specific lithuania email list marketing strategies to adapt to the recipients and increase sales. It is not difficult to guess that higher sales are accompanied by the best possible knowledge of the needs of potential recipients. It is not an easy task, but it is extremely responsible and has a great impact on the final success of the entrepreneur. To avoid mistakes when identifying recipients, it is worth paying attention to the practices of companies offering similar products. Based on the analysis of their experience in selecting potential customer groups, we can refine our strategies. Sometimes, success in clarifying target groups is the result of correcting erroneous assumptions of competing companies.
PRICING POLICY
There are several techniques for determining the price of a product. Most companies, in order to carry out the most effective pricing policy, combine all the techniques. One of them (along with, among other things, the study of demand and brand strength, or the estimation of manufacturing costs) is benchmarking, i.e. the creation of a pricing strategy based on a comparison with competitors. Only by being well acquainted with the pricing practices of other companies can we determine the value of our good, which will be attractive both for us (since it will to some extent guarantee us an advantage over the competition) and for potential customers. It should be stressed that the above analysis must be carried out periodically, since the pricing policy must be flexible and allow us to react to numerous changes, both those related to the performance of the competition and to the current needs of potential customers.
TARGET GROUP
The target group defines the potential recipients of our products or services. Knowing the common characteristics of our customers allows us to modify the characteristics of the products and apply specific lithuania email list marketing strategies to adapt to the recipients and increase sales. It is not difficult to guess that higher sales are accompanied by the best possible knowledge of the needs of potential recipients. It is not an easy task, but it is extremely responsible and has a great impact on the final success of the entrepreneur. To avoid mistakes when identifying recipients, it is worth paying attention to the practices of companies offering similar products. Based on the analysis of their experience in selecting potential customer groups, we can refine our strategies. Sometimes, success in clarifying target groups is the result of correcting erroneous assumptions of competing companies.
PRICING POLICY
There are several techniques for determining the price of a product. Most companies, in order to carry out the most effective pricing policy, combine all the techniques. One of them (along with, among other things, the study of demand and brand strength, or the estimation of manufacturing costs) is benchmarking, i.e. the creation of a pricing strategy based on a comparison with competitors. Only by being well acquainted with the pricing practices of other companies can we determine the value of our good, which will be attractive both for us (since it will to some extent guarantee us an advantage over the competition) and for potential customers. It should be stressed that the above analysis must be carried out periodically, since the pricing policy must be flexible and allow us to react to numerous changes, both those related to the performance of the competition and to the current needs of potential customers.