The classification and assessment of the advantages and disadvantages of the present and potential competitors constitute competitive analysis in B2B marketing.
It is the process of investigating your rivals to understand their market position and take note of how they perform in the B2B sphere. The competitive analysis provides a clear picture of your position relative to your rivals in the B2B market.
Finding out the most recent market trends may be done with the aid of a successful competitive analysis. It highlights what is effective and what is not. It also identifies any holes in your company’s operations, which is highly beneficial in modifying your marketing and sales plan so you can hit new goals.
Competitive/competitor analysis’s importance
According to Hub Spot, organizations can “develop sound business plans that can improve upon your competitor’s” by undertaking competitive analysis.
Today’s B2B marketplace takes a customer-centric stance. The customers of today research you and your rivals, learn the important features of your and their businesses and then decide which one to choose.
Even a slight competitive advantage can cause customers to select you over your rival, which can lead to enormous revenues and even long-term client loyalty.
Let’s start with the procedures for doing a successful B2B competitive analysis now that we are aware of the significance of competitive analysis in B2B marketing.
Determine and classify your rivals
Find out who your actual competitors are first. Once you’ve identified your rivals, it’s time to divide them into two groups:
- Direct competitors
- Indirect competitors
These are companies that offer goods that consumers may quickly substitute for your products. Additionally, they work in the same geographical areas.
Businesses that sell unrelated products but can nevertheless meet similar client needs are considered indirect competitors.
Although this difference is slight, it has a significant impact on how you are positioned. The same audience is served by both businesses, albeit in various ways. However, some businesses simply focus on sales training.
If we do a competition study, none of them will profit because the essential service offerings are all that is lacking.
Examine their marketing and sales strategies
To help your sales and marketing teams deal with the competition, it is incredibly beneficial to analyze the sales strategies and marketing initiatives of your rivals.
You can find this information online by reading the annual reports of publicly traded companies.
Things are different with privately held enterprises, though.
CRM can help with this. Look into the potential customers that selected your rivals over you. If your business doesn’t keep records, adjust your strategy and start asking potential customers why they prefer your competition to you.
During a conversation (when you still have the opportunity to make sales), or through a form field, ask the leads open-ended inquiries (when you have already lost the sales). Pose inquiries like –
- What perception do people have of your goods?
- Was it because they thought the prices were too exorbitant that they decided to go with another business?
- What qualities did the buyer find appealing enough to purchase from you?
Look at their websites to get a sense of their marketing strategies
What is the quickest approach to learning about the marketing efforts your rivals are making? Examine their website in great detail.
For instance, if you operate in the Chinese B2B platform, examine the websites of competitors operating on that platform. It can also help you determine if yours is as well-organized, aesthetically pleasing, and user-friendly as theirs. For your clients to perceive you as professional, a quality website is crucial.
It also provides insight into the types of web page designs and structures that are effective for them, allowing you to determine whether incorporating them into your website can be beneficial.
Review their social media strategies and presence
It’s time to compare your internet presence to theirs after you’ve looked into their online presence. Check their engagement and how they use the platform if your business isn’t present on one or more of the social media accounts they run.
Find out now how these social media platforms can also benefit your company. It’s time to compare your competitors’ strengths, flaws, and grade levels to theirs to execute a clear competition analysis.
Once you’ve identified their weaknesses and strong aspects as well as determined an overall grade for each of them, it will be easy for you to carry out the competitive analysis.