Identifying competitors

As well as finding out more about their customers, market research allows businesses to learn more about their competitors. Businesses may have direct competitors who make the same type of goods or service but also indirect competitors who do not supply the same good or service but meet the same need. For example, the water company Tŷ Nant has competitors such as Brecon Carreg who also sell mineral water. But they also compete against businesses that meet the same need – the need to quench thirst – namely other soft drink manufacturers.

Knowing what your competitors are doing enables businesses to adapt their marketing to respond to that. Tesco became aware through research that they were losing customers to Aldi because of their lower prices so they started advertising that they offered a variety of goods for the same price.

Aldi responded with their own marketing campaign.