2. Ignoring the Competition
Knowing what your competition is doing
is essential for two main reasons. The first reason is the fact that
competition can put you out of business, especially if you are new to
the market. The second reason is because knowing how your competition
meet the needs of your target audience can reveal how your business
might be able to establish a competitive advantage.
If a competitor's product doesn't solve
a problem that your product does solve, then you have found your key
to a potentially successful advertising campaign. However, if you are
not aware of the key players (target audience and competitors), then
you won't have the information you need to make wise decisions.
3. Making Price Your Only Competitive
In the modern world, money is the
primary means by which value is communicated. Therefore, if you sell
a product cheaper than the competition, without communicating to your
target audience the equal value, then consumers will automatically
assume that your product is lower quality.
In addition, if your only competitive
advantage is price, then competitors may be able to lower their price
until they push you out of the market. Don't make the mistake of
making price your only competitive advantage.
Other ways to create a competitive
advantage include: creating a higher quality or higher value product,
reducing costs by increasing efficiency, providing excellent customer
service, as well as focusing on Customer Relationship Management (CRM) in order to build a base of loyal customers who will provide