Last week, I had an interesting conversation with a former client who was considering a major pivot in her business. She felt overwhelmed and couldn't see the next logical step. Many questions clouded her mind leaving her feeling confused and stuck. The good news? Many of these questions could be answered through targeted marketing research. This experience is a testament to how crucial and empowering good research can be, allowing you to make informed decisions to keep your business moving forward.
'Marketing research' is a broad term with numerous approaches, depending on the type of data you need. Whether you're interested in consumer behavior, market trends, or product feedback, there's a research method tailored for you. Yet, despite the overwhelming options, one starting point consistently stands out in my playbook: competitor research. Studying your competitors can provide unparalleled insights and set you up for success right from the start.
Why competitor research, you ask?
It's easy to get so engrossed in building your own client profile and branding strategy that you overlook the competitive landscape. This common oversight can lead to "competitive blindness," where you fail to recognize your competitors' impact and the evolving needs of your target audience. Missing these valuable data points can weaken your strategic edge and weaken your decision-making process.
When small business owners ignore their competitors' target audience and branding strategies, they are blind to valuable insights into their own potential clients’ desires and pain points. By not analyzing your competitors' market positioning and messaging, you risk developing a brand that doesn’t resonate as well as it could.
The result?
You’re outflanked in the very market you hope to dominate.
In my consulting business, I’ve encountered numerous entrepreneurs who fall into this trap for various reasons:
Developing a distinctive brand identity can be incredibly engrossing, to the point where market competition barely registers. Most business owners I've worked with struggle to differentiate their products and services in a sea of similar products. This lack of awareness hinders their ability to carve out a unique market niche.
There’s also the problem of intuition. Many business owners believe they know their target audience like the back of their hand, deeming competitor research unnecessary. They rely heavily on gut feelings rather than data, which can be a risky game. Misplaced confidence can blind you to significant insights that could refine your marketing and branding strategies.
Time is another critical factor. The day-to-day grind of running a business leaves little room for exhaustive competitor analysis. The hustle and bustle of operational demands often push this crucial task to the back burner. Unfortunately, this oversight can cause you to miss out on critical opportunities to understand and outmaneuver your competition.
Interestingly, I’ve noticed that this oversight is particularly common during two critical phases:
The startup phase: When you're just starting, there's tremendous pressure to launch a product or service quickly. This urgency narrows your focus to internal branding efforts, often sidelining competitor analysis.
Periods of rapid growth: During growth spurts, businesses become so preoccupied with scaling operations and meeting customer demands that they neglect to keep a pulse on what their competitors are doing.
Whether you're an established entrepreneur or launching your first business, overlooking competitor research is a mistake you can’t afford to make. Understanding your competitors provides valuable insights that can elevate your branding and marketing strategies, ensuring you stay ahead of market trends. So next time you find yourself overwhelmed or unsure about your next move, remember that a little research can go a long way.
Do you need help with market research? Check out my latest book, 'The Ideal Client Map: The Entrepreneur’s Guide to Creating a Clear Branding Strategy and Actionable Marketing Plan So You Can Reach More Qualified Leads." My co-author, Monte Armstrong, and I take you through the exact steps we have used to build a branding voice, define an ideal customer avatar profile, and create a marketing strategy that works for you.
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