Overview
The month of August is a good time to take stock of the progress made during the year to date and prepare for the business’s last third of the year. The first step in strategic planning is understanding where your company and your services fit in the market.
The following steps are helpful in determining your market position:
Evaluate goods or services provided year to date.
Identify your market competitors and their marketing messaging.
Evaluate your company’s position in the market.
Position your company to make the most of its competitive advantage.
1. Evaluate goods or services provided year to date.
This is a good time of the year to evaluate how your goods or services have changed this year and prepare for anticipated customer needs for the remainder of the year.
List goods and services sold in the last year.
Consider any additional needs of customers that you can serve. The market is constantly changing. It is important to listen to your client base and expand services to meet the changing needs of the market. The key drivers are:
Changes in the regulatory landscape
Changes in the market
New staff with additional professional designations
Current staff with new professional designations
Evaluate pricing for services. Consider:
Have we improved/refined services without increasing pricing?
Where are we relative to our competition? (see below for competitor research)
Now is also a good time to review the backlog and pipeline and make sure you have the people/time/resources to serve your customers through the rest of the year.
2. Identify your market competitors and their marketing messaging.
Many market research and SWOT analyses ask, “how much market share do you have?” However, this is not always the most productive question to start with, as your answer may be hard to quantify and not actionable. Instead, by identifying and evaluating specific competitors, you may determine your position in the market. By evaluating the different product offerings and messaging within your market, you will be equipped to differentiate your company’s offerings and distinguish your marketing messaging relative to competitors. This can be done through a Comparative Competitive Capabilities Chart—a chart comparing what you offer to what your competitors offer.
Identify your most direct competitors. These may be companies with similar product offerings that you encounter during bids and prospect conversation or through internet research. The more comprehensive the list, the better. However, evaluating a small select list of competitors will reap benefits in understanding the market and your position in it. In your Comparative Competitive Capabilities Chart include factors such as:
Location
Geographic Focus
Size
Brand positioning
Total Product Offering
Premium vs. Low Cost Provider
Client Industry Focus
Flexibility and Customization of Products and Services
Price
Financial Strength/Stability
Key Marketing Message (more on this below)
3. Evaluate your company’s position in the market.
From a Comparative Competitive Capabilities Chart, you will likely encounter companies that have different messaging (reasons customers buy their products) and pricing structures for the same products that you offer. Comparing these factors for competitors right next to your company on the Chart allows you to do two things:
Evaluate where your marketing message is not clear relative to prospects or unique relative to competitors. (See chart in Step 2 for examples.)
Educate your sales or marketing team on what options customers have in the market. This equips them to converse confidently in your offering to explain why prospects should buy. This may be especially helpful in bids directly against competitors from Step 2.
4. Position your company to make the most of its competitive advantage.
Steps 2 and 3 can be conducted as part of a SWOT analysis and a follow-up action plan. Evaluating your market identifies competitive threats and internal weaknesses as well as market opportunities and internal strengths. After compiling a SWOT analysis, design the action plan with these purposes:
Lead to strengths
Cover weaknesses
Pursue opportunities
Manage threats
The plan should have clear ownership and responsibility, as well as a 12-month timeline.
Summary
Unless you evaluate how other companies are presenting themselves to customers, it is hard to clarify and present a unique message to the market about your distinctive strengths. Market research and SWOT analysis are key components of an organization’s marketing strategy (January’s topic) and strategic plan (September’s topic). Now is the time to evaluate your position in the market, conduct a SWOT analysis, and set organizational strategic initiatives through a Strategic Plan.
Don't hesitate to reach out to us for copies of prior editions from our extensive Monthly Topic archive.
Comments