Search Marketing Courses

Last week we discussed the differences between a profitable market and a profitable product. We pointed out that in order to succeed online you need to sell products and services that your market wants and needs. Therefore, the ability to discover those wants and needs is a crucial element in creating profitable products and services.

One source of discovering this information is your existing competition. Popular products and services have already discovered some of the information that you are looking for. And by properly analyzing those products and services you can discover that information too. Once again, we turn to Tim Knox to help us figure out how to best do this:

Tim Knox On Checking Out The Competition (02:20)

I like Tim’s advice - it’s solid and to the point. His point about determining whether or not there is existing competition is a good one. It reminds me of something my brother told me (it’s actually some companies business motto, but I don’t remember whose). You never want to be first to market, but you also don’t want to be third to market.

In other words, let someone else do the work of determining whether or not a market has potential. Then, once that has been determined, build and improve upon their product or service. On the other hand, don’t try and enter a saturated market (unless you really can add a great deal of value to the customers of that market).

It is important to combine competitive analysis with an understanding of what your customers want and/or need. If you already have a sense of what products or services your customers are interested in then it can help direct your competitive analysis - for you are now able to see if those wants or needs are being properly met.

The example of Domino’s Pizza is a case in point. The story I heard is that Tom Monaghan (the founder of Domino’s Pizza) knew that people want a hot Pizza in 30 minutes or less - guaranteed. He knew this from hearing the complaints of customers in a Pizza restaurant that he worked in. With that knowledge in mind it was easy for Tom to analyze his competition and note that no one was providing such a service.

That is the power of combining quality customer and product research with good competitive analysis. It directs your research and helps you to know what you are looking for.