How to Do a Marketing Competitor Analysis to Stay Ahead of the Curve

Ever wonder what your competitors are up to? You’re not alone. In today’s fast-paced market, staying ahead means knowing your competition inside and out.

Competitor analysis isn’t just about peeking over the fence. It’s your secret weapon for spotting trends, finding gaps, and seizing opportunities before anyone else does.

In this guide, we’ll walk you through the ins and outs of marketing competitor analysis. You’ll learn how to:

• Identify who’s really competing for your customers
• Dig deep into their strategies
• Benchmark your performance
• Turn insights into action

Ready to get the edge? Let’s dive in and unlock the power of competitor analysis for your business.

7 Key Steps in a Marketing Competitor Analysis

Even though you may already be aware of the general idea behind a marketing competitor analysis, you may not be exactly sure how to construct one from the ground up. In addition, it could be difficult for you to know where to focus or where to begin with the abundance of available data. 

Here’s a step-by-step guide to help you grow your business.

Identify Your Competitors 

Know your rivals. First, consider direct competitors—the businesses offering nearly identical products or services to yours (think Coke vs. Pepsi). These are the ones you’re probably already keeping an eye on.

But don’t stop there. Indirect competitors are sneaky. 

They might not offer exactly what you do, but they’re still vying for your customers’ attention and wallets. A coffee shop’s indirect competitor? It could be a smoothie bar down the street.

Now, here’s where it gets interesting: emerging threats. 

These are the disruptors, the innovators, and the startups that could change the game overnight. Remember how Netflix blindsided Blockbuster?

To spot these competitors:

• Survey your customers
• Browse industry forums and social media
• Attend trade shows and conferences
• Keep tabs on new funding in your sector

Your competitive landscape is constantly shifting. Stay alert, and you’ll never be caught off guard.

Determine What to Analyse 

Now that you’ve identified your competitors, it’s time to put them under the microscope. But what exactly should you be looking at?

Let’s start with product offerings. What features do they highlight? Are there any gaps in their lineup? This isn’t about copying; it’s about finding your unique edge.

Pricing is next. Are they going for the high-end market or competing on value? Look for patterns. Do they offer discounts? Bundles? Understanding their pricing strategy can help you position yourself more effectively.

Then, look at their communication tools. If they run a call centre, do they offer value-adding in-depth guides showing customers how to conference call on Android devices? If not, these details can highlight areas where you might have an edge.

Lastly, look at customer experience. Read reviews, try their products, and interact with their customer service. What are people saying? What do they love or hate?

Remember, the goal isn’t imitation—it’s to understand the playing field so you can carve out your own unique space.

Gather Intelligence

First, set up Google alerts for your competitors’ names and key industry terms, and you’ll essentially have a personal news feed on all your rivals.

Social media? It’s a goldmine. Follow your competitors and their hashtags. Tools like Hootsuite or Sprout Social can help you track their engagement and content strategy. Other tools, like SEMrush for keyword and traffic analysis or SimilarWeb for website analytics, can provide valuable insights. 

But here’s the kicker: Stay ethical. Avoid anything that feels shady—no impersonation, no breaching paywalls, and no stealing confidential info. Public information is fair game. But if you’re ever in doubt, ask yourself: Would I be okay with competitors doing this to my business?

Analyse Their Strengths and Weaknesses 

SWOT analysis basics come in handy here.

• Strengths: What do they do well? Maybe their slick app or stellar business phone services drive customer satisfaction.
• Weaknesses: Where do they fall short? Slow shipping? Limited product range?
• Opportunities: What could they capitalise on? New markets? Emerging tech?
• Threats: What might trip them up? Changing regulations? New entrants?

For each competitor, create a SWOT grid. Be honest and thorough. Once you’re done, you’ll have a clear idea of your competitors’ weaknesses and threats. They could be your chance to shine.

Benchmark Your Performance

Let’s talk numbers. How do you stack up against the competition?

Key metrics to watch include:

• Market share
• Customer acquisition cost
• Customer lifetime value
• Social media conversion and engagement rates
• Website traffic

Don’t just look at where you are now—track these over time. Are you gaining ground or losing it?

Now, be realistic. If you’re a startup, don’t expect to match a giant’s market share overnight. Instead, set achievable goals, like:

• Improve your net promoter score by 10%
• Boost website conversion rate by 2%
• Increase social media followers by 25% this quarter

Remember, it’s about progress, not perfection. Keep pushing, keep measuring, and watch yourself climb.

Identify Market Gaps and Opportunities 

Now for the exciting part—finding those golden opportunities.

Listen closely to customer complaints. Those grumbles are your ticket to innovation. Is everyone frustrated with slow shipping? There’s your chance to stand out with speedy shipping times.

Look for underserved niches. Maybe your competitors are all chasing the same crowd. Who’s being left out?

Think about emerging trends. Can you be the first to ride the next wave? Your unique strengths + market gaps = your sweet spot for differentiation.

Consider any technological advantages you might have. For example, if you’re using advanced enterprise application integration software, you might be able to offer more seamless services than your competitors.

Maybe it’s exceptional customer service in an industry known for being impersonal—or sustainable practices in a not-so-green sector.

Find that gap. Fill it. Own it. That’s how you stand out in a crowded market.

Develop Your Action Plan 

You’ve got the intel. Now, let’s turn it into action.

First, prioritise. What changes will have the biggest impact? Focus on quick wins and long-term game-changers.

Create a battle plan:

1. Set clear, measurable goals
2. Break them down into specific tasks
3. Assign responsibilities
4. Set deadlines

Maybe you need to revamp your website, launch a new product line, or overhaul your customer service.

Whatever it is, make your goal concrete. “Improve social media presence” is vague. “Post three times a week and increase engagement by 15%” is actionable.

Remember, to keep analysing, keep adjusting. Stay nimble. Your competitors won’t stand still. Neither should you.

Conclusion 

There you have it—your roadmap to marketing competitor analysis. It’s not about obsessing over your rivals but about sharpening your own game.

Stay curious, stay vigilant, and stay ahead. The market’s always moving. With these tools in your arsenal, you’re ready to move with it—and lead the pack.

Now, go conquer!

Find that gap. Fill it. Own it. That’s how you stand out in a crowded market.