Question

• How does a company identify its competitors? What do marketing managers want to know about the companies identified as competitors?

Answer 1

There are four types of competitors: direct, indirect, perceived/replacement and SERP

In the real world the best place to start recognizing the first three categories of competitors. If you work for a client as an SEO – begin by asking them who their competitors are. If it is an new sector for you, they can have a very different view. You will at least see what keywords they are targeting, which can notify your campaign. It is important to remember that high street competitors aren't necessarily competitors online. SEO and social may not be a priority for them, but you've just found a void that you can leverage by creating that.

Direct competitors are businesses that have the same range of products or services. For example, if you're a landscaping company, your direct competitors are other landscapers Indirect competitors are the ones that don't provide the same service, but instead serve the same need. In the case of landscaping, the indirect rivals will be businesses that would promote do-it-yourself lawn care, such as local nurseries, home improvement shops, and hardware stores. Knowledge about your indirect rivals will assist you in finding successful ways to get to your target market.

The more you are aware of the positioning of your rival, the better you can differentiate yours from it, and make your company special. This also makes it easier for clients to compare businesses quickly and understand how those differences apply to them. If you've got a similar place to your rivals, that is all right too. Knowing how your rivals work within this framework will help you understand what is and is not successful.

Knowing the price of the rivals is not always so that they can equal or exceed theirs. The aim is to consider where your price in the broader market comes compared to your rivals. That is an advantage if your price is lower than theirs. You will need to persuade potential customers, however, that the value of your product or service is as strong as higher priced ones.