Why is competition mapping important?
A competition mapping process is beneficial for companies looking to create marketing plans for their goods. Some benefits of utilizing a competition map include:
What is competition mapping?
An organization’s competitors can be analyzed using a visualization tool called “competition mapping” or “competitive analysis.” Companies use these to help them strategically provide better service. When businesses introduce a new product or service, competition mapping is a useful tool. Additionally, it can be used by businesses when developing new social media or marketing strategies.
How to create a competition map
The following actions should be taken to develop a competition map for your business:
1. Pick your competitors
To include in your competition map, pick up to five of your direct rivals or those selling similar products. You should research these businesses to see what they are doing particularly well. Do some online research to learn more about the products offered by these companies, their target market, and their marketing approaches.
2. Choose an area of business to review
Choose a specific area of focus, like social media or product usability, to create a competition map. This can help direct your research. Gather information from your own business and those of your rivals to compare brand success overall. If you are reviewing social media, for instance, check to see how frequently your competitor posts updates and what types of posts they make to see if they are relevant to that company’s target audience.
3. Identify your attributes
Next, review your products or brands strengths. Compare your product or service to those of your rivals and think about how people might view them. Knowing your company’s strengths can help you develop your brand voice and message to connect with your target audience in the most effective way.
4. Find areas of improvement
Next, determine how you can make your product or service better. To do this, study the characteristics of the products or marketing strategies employed by your competitors. Making this comparison can assist in product improvement and demonstrate to investors your dedication to developing your brand to keep up with market changes.
5. Make a list
Create a list or another visual representation of your data after you’ve collected it to see your comparisons. Think about making two columns—one listing the details of your rivals and the other featuring your own content. This can help you find areas for improvement. For instance, if you notice your rival doesn’t post frequently on social media, you might try to come up with ideas for how you can improve your own posting routines.
6. Brainstorm solutions for filling the gap
After you’ve determined where work needs to be done, make a list of five to ten suggestions for how to close the gap. These can help you get started in improving your business. Consider implementing just one suggestion from your list while keeping the others for potential future developments.
Examples of competition mapping
You can review a company’s various aspects with the aid of competition mapping. Some areas to compare when making a map include:
Quality
Businesses use competition mapping to gauge how well their goods or services are performing. For instance, a hotel might assess how its amenities and design stack up against those of other hotels in the area. They could do this by making a T-shaped graph with full services and limited services at either end of the x-axis. Luxury decor could be displayed at the top and standard decor at the bottom on the y-axis.
A hotel’s position on the graph could provide information about how high its standard is in comparison to others. So, if a hotel achieved high rankings in both the full service and luxury categories, they could view themselves as having the highest level of quality. Making use of that, the hotel could produce advertisements that highlight the luxurious accommodations available at their establishment.
Price and ratings
Prices and ratings are yet another element to take into account for competition mapping. For instance, a restaurant serving Italian cuisine might think about comparing its price and online reviews to those of other establishments serving the same cuisine. Research may reveal that they provide lower prices than their rivals. They could use this information to advance their own restaurant. To fill this gap, one strategy might be to hold special promotions with offers like a buy one, get one free deal. In order to distinguish themselves from other eateries that charge more, they could also emphasize their already low prices.
Location
Businesses also frequently compare the location of their company to that of their rivals. An excellent location can help a business attract more customers.
For instance, a coffee shop might check to see if it is closer to attractions like airports, museums, and shops than its rivals. Being nearer to these places would enable them to observe more possible foot or traveler traffic and perhaps draw more customers. To promote interaction and raise the possibility that their area will become well-known or a popular tourist destination, the coffee shop could form a partnership with nearby non-competing businesses.
Competitive Analysis Framework | Understand the User | App Marketing | Udacity
FAQ
What is competition mapping?
An organization’s competitors can be analyzed using a visualization tool called “competition mapping” or “competitive analysis.” Companies use these to help them strategically provide better service. When businesses introduce a new product or service, competition mapping is a useful tool.
What elements are in a competitive map?
A competitive map shows how businesses, brands, products, services, or locations compare to one another. This is frequently a simple graph of two factors that buyers take into account.
What is meant by market mapping?
Market mapping is the process of plotting competitors and their products on a graph to better understand competitor behavior and identify market gaps.
