In every business, there are external factors that significantly impact the business environment. Part of the role of Marketing is keeping a pulse on the external environment. This includes financial, regulatory, political, cultural, technological and competitive environments. Changes in any of these environments can have significant implications for businesses. In change, there is opportunity for astute marketers.
With the exponential growth of media outlets, people are bombarded with information. How do you keep a pulse on these environments without being overwhelmed? Start by assessing key factors that are critical to your business success and choose certain things to monitor. Start by reviewing key general business publications such as the Wall Street Journal, Business Week and local business journals. Identify key trade publications focusing on your industry. In construction, start with Engineering News Record. Then review publications your customers read.
Technology has made this process even easier. Tools such as Google News Alerts, allow you to set email Alerts a certain company, product, or even a person is mentioned in the news. RSS feeds are another way of keep abreast of information. Many trade publications offer industry and market reports.
Keeping a Tab on Competitors
“Know thy enemy.”- Sun Tsu
Every industry has competition. A competitive marketplace is a healthy business environment. Competitive pressures help drive innovation, differentiation, efficiencies and improvements. A key component of remaining competitive is careful monitoring of the competition. A careful analysis of the competition should focus on competitor’s competencies, capabilities and points of differentiation.
Ultimately, the purpose of keeping a competitive pulse is monitor activities, but to eventually be able to predict what a competitor will do given a certain situation. Developing a deep understanding of competitors has many benefits. Efforts should seek to understand:
· Leadership team
· Organizational structure
· Sales and marketing strategies and approach
· Marketing, advertising and pricing strategies
· Competitive strategies and approaches,
· Potentials responses to your strategies
· How they manage, and make decisions
· What do they do well, and what they don’t do so well
· Understand their cost structure
· Compensation structure
· Key customers and relationships
· Their goals, objectives and priorities
· Direct and indirect competitors
· Their motivation (publically held, family business, part of a large conglomerate)
· Goals, strategies, objectives, strengths and weaknesses
Where do you get the information?
There are several ways to monitor, track and even predict competitive activities. In addition to the Google News Alerts and RSS Feeds, media services such as Cisions (formally Bacon’s) offer information only company news. Dun and Bradstreet, Hoovers and other services offer profile and financial information for a very low price. Legal and SEC rules require significant disclosure by public companies. Information about private companies may not be as readily available, but can be obtained with persistence and creativity. Company web sites, press releases and SEC filings provide a tremendous amount of information. Competitor’s sales people, customers, suppliers, and vendors also also excellent sources of information. Sources include:
· Company web sites
· Search engines, such as google
· Social networks, wikis and blogs
· Press releases- offer insight about new strategic initiatives, new products, new services, key hires, new locations, etc.
· Advertisements
· Job postings- position postings on sites such as Monster can offer insight as to a companies’ strategies and initiative.
· Customers and Suppliers- customer and suppliers are typically great sources of information on competitive product and service offering and pricing.
· Former employees, current employees
· Trade Associations
How to get started
Begin tracking competitive activities and develop a tool to store the information and knowledge gathered. Consider both a physical file (brochures, cut sheets, proposals, ad samples, articles, etc) and electronic sources (files with information collected). Involve others in the process. Business development, engineering, and project managers can be excellent sources of information. A key component is ensuring that the information and knowledge collected is current.
