Competitor analysis
Researching and analysing the impact of competitors on the business
What competitors do can have an impact on businesses and therefore businesses will want to analyse the competition in terms of their strengths and weaknesses and what is different about them.
Impact of the product or service offered
Businesses will keep an eye on competitors' products or services to see what works well, what does not and to see how they can target customers more effectively.
Pricing strategies
When setting prices, a business can follow a variety of strategies including a competition-based pricing strategy. This pricing strategy bases price on the price of the competition – it can be higher, lower or similar – depending on the strategy. For example, if a business wants to give the impression that its products are more luxurious than the competition's products, it may set a higher price.
Location
The location of competitors can have a negative or positive impact. On one hand, being close to competitors can be detrimental because customers will have a choice of where to go. On the other hand, being close to competitors can attract customers to the area. For example, shops locate themselves in retail parks as there are similar businesses there that attract customers.
Follow the link to remind yourself of the contents of Module 2: Planning a Marketing Campaign
