Small business marketing entails more than simply putting your business name out there. Taking the time to create a small business marketing strategy that will set them apart from the competition is one of the best things small business owners can do for their company.
A small business marketing plan details how you can successfully execute your marketing campaign to attract your target customers and make sales. One thing to do this is by making research and observation to learn more about your competitors. More importantly, you must learn how to turn all of this information into strategies that will help you distinguish yourself from your key competitors.
This step-by-step guide to writing a competitive analysis for your small business marketing will teach you how to find out what makes your rivals tick and what you can do to overpower them.
What is a Competitive Analysis?
Competitive analysis is referred to as the analysis and research of your competitors. You will boost your small business efforts by recognizing a competitor’s strengths, weaknesses, goods, revenues, and marketing strategies. This helps you to build strong market strategies to understand how your opponents function and find places where you may be able to dominate them.
The competitor analysis section of a business plan can be the most difficult to write because you must first investigate your competitors before you can evaluate them.
How to do Competitive Analysis
Putting together useful research is a little more challenging. There are some steps you must complete. However, these can be helpful in getting a deeper understanding of your target market. You may be a well-established organization, a start-up, or a small business. In any case, combining this information gives you a good view of what your competitors are up to.
Step1: Know Your Competitors
If you’re looking to start a small business that will run locally, you probably already know who your competitors will be. However, if you don’t know, you can easily find out by conducting an internet search for local businesses, searching online, or driving around the target market area.
Non-local competitors can exist for your local business too, which you should be aware of. At this point, you have to make sure you have recognized all of your potential competitors.
Step 2: Compare Your Competitors Marketing Strategies
Examining the competitors’ marketing strategies is a crucial first step. A detailed competitor review requires a number of steps. Bear in mind that this portion of the review is content-based. Identify the number of variables, like how many blogs the rivals are using. Concentrate on relevant pages such as the homepage and service or product pages, headings, and the page copy for keywords. Assess the tone, style, and duration of the work. Compare it to the content of your own website.
Step 3: Identify Your Competitors Target Customers
Determine which customers your competitors are most likely to attract. This can be done by looking at their marketing materials, social media accounts, website, forum, and advertising, among other items. This knowledge will assist you in identifying who they are attempting to contact.
Step 4: List Your Competitors Pricing
Remember to provide a list of how the competitors market their goods and services. Include additional specifics such as payment plan pricing, product and service bundle pricing, and shipping costs. You can lower the price to boost sales if you have direct competition selling at the same price. Competitors will be forced to innovate in order to keep up with you if you lower your price.
Step 5: Use SWOT Analysis
After you’ve gathered all of the information you’ll need, your company will need to put it all together. That’s where a SWOT analysis of a competitor comes in handy. The word is an abbreviation for Strengths, Weaknesses, Opportunities, and Threats. They can be built to analyze your own or your competitors’ business.
Writing Your Competitor Analysis Section
The competitor analysis section of the business plan will be written in the form of several paragraphs.
The first paragraph will define the competitive landscape, including who your proposed business’s competitors are, how much of the market they dominate, and any other related information.
The second and next paragraphs will describe your competitive advantage, as well as why and how your company will be able to compete with these rivals and develop itself as a successful company.
Note that you don’t have to go into great depth here, but you do need to reassure the reader of your business plan that you are mindful of the market and have a competitive advantage.
Small Business Marketing Trends 2021
With digital marketing changing faster than ever, small businesses must also learn to adapt in order to stay in business and stand out from their competitors. Implementing upcoming digital marketing trends can help your small business stay on top of the competition with a strong small business marketing strategy.
Video Content Marketing
Video content marketing continues to reign supreme as a trend. To increase revenue and brand awareness, small businesses can run a paid ad that plays on other video content. As a social media outlet for your business, you can start a YouTube channel to post product education or connect with your audience. The bottom line is that video marketing should be a part of your small business marketing strategy.
Google My Business
Google My Business gives you complete control over how your business appears in Google searches. Small businesses in the area are finding success with Google My Business to attract local clients and traffic. You can increase foot traffic, website visits, and phone calls by having a good local listing. Verify and keep your local listing up to date to help your company outperform the competition in your area.
Marketing Automation is the use of digital tools to complete repetitive marketing tasks. You can automate social media posting so that you don’t have to open the app every day and manually post. You can create email automation campaigns that send a series of emails to customers in response to triggers such as list signup. As a result, you can save time and energy as a small business.
Quizzes and polls can be used to ask questions, or other features such as shoppable social media posts can be used to create interactive content. These immersive environments necessitate more than just pressing the “like” button. You can also create campaigns that encourage customers to share their experiences, opinions, or content.