“Know your enemies and know yourself” – He stated Sun Tzu, Chinese military strategist and philosopher, thousands of years ago…
Although this phrase was born in a military context, we can say that today it is still valid in the world of business and markets. After all, it is nothing new that studying the competition's movements is essential not only to anticipate them, but to devise strategies that differentiate your own business in the eyes of the consumer.
However, what may not be so obvious is the fact that, in addition to the recommended competitor monitoring, your analyzes need to be placed in context. At Linkages, we call this context market vision.
Also read: Market vision: what it is and why it is important to map it in time.
To have market vision it goes far beyond relying on loose data about the competition, making assumptions about the future or carrying out a study here and there.
It’s about delving deeply into the intricate web of the environment in which your business operates. Once inside, you will have a Big Picture of how these consumer relations in fact work. (And of course, you can zoom in on whatever catches your attention).
With this in mind, our experts mapped out 5 essential questions to better understand your market in January and guarantee a year of better decisions and greater results.
And an important note: it's completely normal for you to realize that you don't have all the answers yet. Throughout the year, your business will have the opportunity to investigate further and even count on professional help to guide you in the vast world of data – or, as they say, the new oil. –
Which competitors, direct or indirect, have market share in your market?
We start, of course, with the basics. Map the competition and, most importantly, to understand how she got to where she is. Learning from the mistakes and successes of other organizations can save yours a lot of valuable time and money.
Once we have understood how the different market agents are configured (at this point, it may be useful to place a geographic limit. For example: the food market in state X or the hairdressing market in neighborhood Y), the time has come to take the Big Picture. She will certainly have a lot to contribute to your business analyzes and decisions.
Be prepared to explore the nuances of this specific environment, delving into the complexities of consumer relationships and identifying opportunities that may have escaped superficial analysis.
What are the emerging trends that could impact your industry this year?
This is where our analysis starts to get complex (most businesses stop at question 1).
Understanding what market trends are, that is, where you should direct more attention and resources from now on, can be challenging. Especially if you don't have accurate data.
And make no mistake, the need to keep up with trends goes far beyond appearances (although they are also important).
By knowing what are the emerging movements in a given market, whether they come from consumers or the competition itself, you save time and a unique chance of not being caught by surprise – and we are not talking about good surprises -.
In other words, you will be able to avoid catastrophes, anticipate the competition's marketing moves, and of course, improve sales by offering products and experiences that are much more in line with what is sought and offered.
In this case, the Big Picture of trends is also valid. Try to understand where these movements come from and whether they really deserve your attention. Expert help is essential in these cases.
What regulatory, technological or economic challenges does your market face or may soon face?
The Big Picture gets even bigger when we look at factors that may seem external, but have the potential to directly affect your consumer and the dynamics of your business.
Constantly evolving government regulation can shape the operational landscape and create unexpected opportunities or obstacles.
Technological changes, often rapid and disruptive, can redefine customer expectations and reshape market competition.
Likewise, economic factors, such as fluctuations in exchange rates or changes in consumer trends, can profoundly impact the viability and success of your venture.
Anticipating these events, even if based on assumptions about the future, can protect your business from unforeseen or unforeseen events, in addition to creating opportunities that perhaps no one else is seeing.
Distribution and dissemination channels: what is losing and what is gaining relevance?
The company-consumer relationship, most of the time, is complex and not obvious. Especially in a context where increasingly faster and more radically, technology shapes our behavior.
As tempting as it is to assume that social networks, for example, are a better advertising channel than traditional media, it is necessary to be very careful with “guesstimates”, as they may not be applicable to all businesses and all public.
The truth is that the data They are your most needed asset when making any decision (especially if that decision involves money and involves risks).
Read too: Data: how much we generate and how it turns into insights.
When we talk about distribution and advertising channels, we are talking directly about what keeps any business alive: its customers.
Therefore, observing how other organizations, competitors or not, relate to customers and being inspired by other more mature markets is essential to have an even more useful Big Picture.
Your business is part of the market: what data are you documenting and using as a source of improvement?
There is no point in having both eyes on the market and neither on your own business. It seems obvious, but it is extremely easy to forget.
Your organization's data is, without a doubt, the cheapest source of insights and improvements you can have.
Ask yourself: What metrics are we monitoring to evaluate the success of our operations? How does this data reflect the real panorama of the market and our interaction with it?
It is worth zooming in on these issues and keeping them under constant analysis.
We help you create the Big Picture of your market
By now, you must have realized that evaluating the market goes far beyond keeping an eye on one competitor or another. Providing accurate analysis depends on reliable data and your ability to extract insights from it.
Therefore, the best way is to rely on specialized professionals who not only have the ability to collect and analyze large volumes of data, but who will look at the particularities of your business and identify specific opportunities for your profile.
Want to know more about our analysis models? Schedule a meeting with one of our experts and start 2024 on the right foot.
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