Marketing Glossary

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Business Case
Buy, Build or Partner Strategy
Competitive Analysis
Customer Acquisition
Madison Avenue
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Competitive Analysis

Competitive Analysis (CA) represents a key element for the definition of new products and the preparation of a product strategy. It is also of great importance for sales and marketing tactics after a product launch.

Competitive Analysis, also known as Competition Analysis or Competitive Market Analysis (CMA), reviews how competitors approach and serve the market and what their products are capable of. It investigates especially products and related product lines of competing companies. Assessment of strength and weaknesses (SWOT Analysis) helps to position the new products and to define and execute a sound sales and marketing strategy.

CA is often neglected or insufficiently executed because attention is focused on the development of new products or product features. Neglecting competition results frequently in loss of market share because new or improved or superior product capabilities are unexpectedly introduced to the market.

"Ignorance about competition in a highly competitive market place is like playing chess without seeing the pieces of the other player".
Wolfgang Damm

Comprehensive knowledge about competitive products transforms anxiety of the unknown (competitor) in confidence about own products. It allows to use competitors weaknesses to emphasize superior capabilities of the own product and to handle customer objections. Being armed with strong arguments will help to present the products convincingly.

Competitive Analysis - what to investigate?

Who are the competitors (all)?
Product / Service capabilities and features.
Strength / Weaknesses compared to own products.
Price structure and discount behavior.
Product support and service?
Sales structure (direct, distributor, representative).
Marketing activities.

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