Being prepared for battle is essential if you are going to emerge victoriously on the sales battlefield. You must have an ample supply of armor piercing weapons in your arsenal so that you can actually penetrate the competition’s weak points as well as prepare for the proper defense in areas that you do not measure up to.

As mentioned previously, there are key questions that you need to ask in order to prepare an analysis of your competition that will allow you to develop the right plan of attack.

Competitive Analysis:

Here are the 5 questions you should ask in order to analyze the competition

1. Who are your major competitors and how are you different? Being able to differentiate yourself from the competition will allow you to compete on more than just price. In order to confidently convey to your prospects and customers why they should do business with you, it is important that you take the time to understand the truth behind how you are different. Without differentiation then the lowest priced provider will prevail.
2. What new competitors have entered the marketplace in the past three years? This answer may give rise to a growing market segment that has potentially been underserved in your industry. Perhaps, a new way of doing business has been developed by these new upstart competitors and they are able to capitalize on their innovative approach to the market. If they are winning business, it is possible that your market still has room for growth but watch out for the sly fox that is simply stealing away your customers because they are outselling you. At the least, you will gain some insight into why these new competitors are gaining ground.
3. What is your competition’s marketing strategy? Knowing the message your competition is consistently communicating to the marketplace will allow you to prepare your own unique marketing messages in a way that elevates you above the competition. Are they touting benefits that you have but are not conveying? How many times have you lost a sale only to find out that the reason is because the competition pointed out a benefit that they provide and you did not point out the same benefit? Be aware of the exact messages your competition is sending to the marketplace.
4. Why have your customers chosen you over the competition? An obvious question, but one that many sales organizations do not even know the answer to. Let your customer talk and be thankful for every insight they give you.
5. What market segments will provide you with home-field advantage? It’s far easier to win when you have the home-field advantage. Your advantage will be in markets that you have a stronger presence in over the competition. Use these markets for leverage as you begin attacking other markets that your competition may do a better job in. It may be that you need to spend more time in this market than you have done so in the past.

All of these questions are designed to provide you with a framework for understanding your strengths and weaknesses as compared to those of your competitors. Part Three of this blog series will look at Customer Buying Intelligence.

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