Know your competition

It is very important to know your competition. It allows you to make sure that you add more value to your customers than the competition and let your target market know why they should choose you.

Your competition includes companies who offer the same or similar products or services, a company offering an alternative, or the fact that your target market simply choose not to invest in what you have to offer.

As an insurance broker your competition includes:
Other high street brokers, online brokers, price comparison sites, direct insurers, people who choose not to insure (otherwise known as self-insurance)...

As a car seller your competition includes:
Other car dealers – new and second hand, other transport providers, other status symbols...

As an orange juice seller, your competition includes:
Other orange juice sellers, other juice sellers, smoothie sellers, other soft drink sellers, alcoholic drink sellers….the list could go on and on...

You probably know the main companies who provide the same or similar products to you. If you can’t, there are so many places you can look:

• Local business directories such as Yellow Pages and Thomsons
• Online directories such as www.yell.com, www.yahoo.com
• Search engines such as www.google.com
• Trade magazines – look for companies advertising in your industry, news stories and most include industry directories too

For non-direct competitors, you need to think more laterally. Put yourself in your target market’s shoes. If they choose not to buy a car, how do they travel instead? By train maybe? So how can you reach them? Onboard magazines?

Take time to consider your competition and the options that your target market is faced. This will increase your understanding of them and their needs and so put you in a better position than the competition to meet those needs.