If competitive analysis isn\u2019t part of your business plan or e-commerce marketing strategy<\/a>, it should be.<\/p>\n\n\n\n But before you dive in, you have to find out who your competitors are and the type of competition you\u2019re dealing with.<\/p>\n\n\n\n Today, we\u2019ll talk about direct vs. indirect competition, why you should know the difference, and how to identify your competitors.<\/p>\n\n\n\n Use these links to jump to a section:<\/p>\n\n\n\n Direct competition refers to businesses that provide the same product or service and attract the same audience. <\/p>\n\n\n\n Direct competitors typically have three things in common:<\/p>\n\n\n\n Brick-and-mortar stores that sell similar products and are located in the same area or neighborhood are direct competitors.<\/p>\n\n\n\n A car dealership, for instance, is in direct competition with other local car dealerships.<\/p>\n\n\n\n And a car usually only competes with other cars in its class. <\/p>\n\n\n\n Tesla, Lexus, BMW, Mercedes, and Audi are all direct competitors in the midsize luxury category. You wouldn\u2019t compare a $60,000 Tesla with a $17,000 Mitsubishi Mirage, right?<\/p>\n\n\n It\u2019s the same story with digital businesses, except they have more competition. <\/p>\n\n\n\n An email marketing software company directly competes with other email providers. A search engine optimization (SEO) agency is up against other SEO agencies in the industry. You get the idea.<\/p>\n\n\n Indirect competition refers to businesses that serve the same target market and customer needs<\/a> but offer different products or services. <\/p>\n\n\n\n Indirect competitors may offer products at comparable price points, but that isn\u2019t always the case.<\/p>\n\n\n Here\u2019s an example of indirect competition: a sushi restaurant and a burger joint in a trendy Los Angeles neighborhood. They serve different products, but they both satisfy hungry diners in the area. <\/p>\n\n\n\n Now here\u2019s a less obvious example.<\/p>\n\n\n\n A person struggling with back pain may see a chiropractor, physical therapist, surgeon, or massage therapist. Most people will likely only pick one or two options until their back pain is resolved.<\/p>\n\n\n\n But each provider will present its case to the consumer as to why it is a more effective solution for back pain. <\/p>\n\n\n\n Therefore, they\u2019re all in indirect competition with each other.<\/p>\n\n\n Let’s look at one more example of direct vs. indirect competition.<\/p>\n\n\n\n McDonald\u2019s and Burger King are direct competitors. They serve the same customer the exact same way \u2014 with burgers and french fries. <\/p>\n\n\n\n Now think about McDonald\u2019s and Domino\u2019s Pizza. They\u2019re both fast-food restaurants and they serve the same type of customers. <\/p>\n\n\n\n But they do it with different types of food: burgers vs. pizza. This makes them indirect competitors.<\/p>\n\n\n If you want a pizza, you wouldn\u2019t think about McDonald\u2019s, right? They don\u2019t serve pizza, so they can\u2019t satisfy your craving.<\/p>\n\n\n\n Still, if you\u2019re really hungry, you might end up choosing McDonald\u2019s over a pizza place. <\/p>\n\n\n\n This is why it\u2019s important that businesses pay as much attention to their secondary competition as their direct competitors.<\/p>\n\n\n Now that we know the difference between direct and indirect competition, here are three ways to go about finding them. <\/p>\n\n\n A simple way is to search your product or service category on Google to see what comes up. <\/p>\n\n\n\n If you are a graphic design agency in Miami, your search results page might look like this:<\/p>\n\n\n\n From here, you could research these other companies\u2019 websites to learn about their different approaches and how yours compares.<\/p>\n\n\n\n You could also search by categories or companies on a website such as Crunchbase<\/a> or Product Hunt<\/a>.<\/p>\n\n\n\n On Crunchbase, you can do an advanced search using keywords relevant to your business or service. <\/p>\n\n\n\n The site lists all kinds of company data, including number of employees, related industries, and funding:<\/p>\n\n\n By doing DIY market research<\/a> online, you might find competitors that you haven’t noticed before or didn\u2019t know existed.<\/p>\n\n\n\n But don\u2019t toss out those keywords just yet\u2026<\/p>\n\n\n Keyword research is another good way to identify and learn about your competitors.<\/p>\n\n\n\n There are plenty of keyword research tools out there. You can start for free with Google Ads Keyword Planner<\/a>. <\/p>\n\n\n\n Type in the keyword related to your product or service. This pulls up other companies in the category you searched, as well as related keywords that consumers \u2014 your potential customers \u2014 use when they search. <\/p>\n\n\n\n Pay attention to the companies buying PPC ads<\/a> and brands trying to outrank you for these search terms:<\/p>\n\n\n If you\u2019re in e-commerce, another simple (and free) way to do keyword research and find your competitors is by doing a search on Amazon for your product or category. <\/p>\n\n\n\n Amazon\u2019s auto-fill feature does most of the work for you as you type:<\/p>\n\n\n\n Check out the search results to see what\u2019s selling and what customers have to say.<\/p>\n\n\n Speaking of customers, they have a good grasp of the market since they’re bombarded with ads on a daily basis. <\/p>\n\n\n\n Why not ask them about other products or services they\u2019ve seen or tried? <\/p>\n\n\n\n You can do this informally on social media and other online forums, or use market research techniques<\/a> such as surveys and focus groups. <\/p>\n\n\n\n You could also use a non-traditional tool such as PickFu, an online polling platform.<\/p>\n\n\n\n With PickFu, you choose your target audience<\/a> from a panel of more than 10,000 consumers and ask them just about anything. <\/p>\n\n\n\n You can upload and get feedback on photos, videos, URLs, or any creative asset. This is useful if you want to compare your product or idea to another brand.<\/p>\n\n\n Or you can ask an open-ended question to get feedback on a single asset or concept. <\/p>\n\n\n\n Respondents submit written comments with every PickFu poll. Pay attention to the responses \u2014 that\u2019s where you\u2019ll find valuable insights.<\/p>\n\n\n Sign up and start surveying<\/a> your target customers on PickFu.<\/p><\/blockquote><\/figure>\n\n\n Whether you\u2019re in a crowded field or you have only a few competitors, you have a lot of work to do to stand out. <\/p>\n\n\n\n Here are three key areas to focus on.<\/p>\n\n\n When you identify customer needs<\/a> and really listen to them, you\u2019ll do a better job of delivering helpful content and the quality they expect.<\/p>\n\n\n\n Social listening<\/a> is one way to get to know your customers. <\/p>\n\n\n\n Another way is to ask the target audience you’re trying to reach.<\/p>\n\n\n\n When you select and survey an audience using PickFu, you\u2019ll learn their pain points before<\/em> you launch or move forward with a project.<\/p>\n\n\n\n That’s what this PickFu user did:<\/p>\n\n\n Listening to your customers will save you valuable resources in the long run and help you stand out.<\/p>\n\n\n Why are Gucci handbags worth thousands of dollars, yet Coach bags cost a few hundred or less? The difference is market positioning<\/a>.<\/p>\n\n\n\n Your unique selling proposition (USP) sets the tone for your positioning. <\/p>\n\n\n\n It doesn\u2019t just help you stand out; it can also help your sales. 52% of consumers say they\u2019re willing to pay more<\/a> for a well-known brand.<\/p>\n\n\n\n Make sure you have a clear USP, and your customers won\u2019t focus on price. They\u2019ll see you in a different class than your competitors. <\/p>\n\n\n Strong branding sets you apart from your competition. It can turn customers into advocates and improve retention.<\/p>\n\n\n\n But it takes time to build your brand. And you\u2019re never really done.<\/p>\n\n\n\nWhat is direct competition?<\/h2>\n\n\n
Examples of direct competition<\/h3>\n\n\n
![\"Luxury](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/beautiful-modern-cars-at-luxury-dealership-salon.jpg\")
<\/a><\/figure><\/div>\n\n\nWhat is indirect competition?<\/h2>\n\n\n
Examples of indirect competition<\/h3>\n\n\n
![\"Infographic](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/Competition-Table.png\")
<\/a><\/figure><\/div>\n\nThe importance of knowing your direct and indirect competitors<\/h2>\n\n\n
![\"gif](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/ezgif-5-089c147800.gif\")
<\/a><\/figure><\/div>\n\n\n3 ways to find your competitors <\/h2>\n\n\n
1. Perform market research online<\/h3>\n\n\n
![\"direct](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/Screen-Shot-2022-10-06-at-10.03.44-AM-1.png\")
<\/a><\/figure>\n\n\n\n![\"Screenshot](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/Screen-Shot-2022-10-05-at-5.22.54-PM.png\")
<\/a><\/figure><\/div>\n\n\n2. Do keyword research <\/h3>\n\n\n
![\"Screenshot](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/directcompGoogleKW2.png\")
<\/a><\/figure><\/div>\n\n\n![\"screenshot](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/Screen-Shot-2022-10-06-at-9.14.55-AM.png\")
<\/a><\/figure>\n\n\n\n3. Collect customer feedback <\/h3>\n\n\n
![\"Screenshot](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/Screen-Shot-2022-10-06-at-9.21.45-AM.png\")
<\/a><\/figure><\/div>\n\n\n![\"Screenshot](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/Screen-Shot-2022-10-06-at-9.30.02-AM.png\")
<\/a><\/figure><\/div>\n\n\nHow to gain a competitive edge<\/h2>\n\n\n
1. Listen to your customers <\/h3>\n\n\n
![\"Screenshot](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/Screen-Shot-2022-10-06-at-3.22.32-PM.png\")
<\/a><\/figure><\/div>\n\n![\"Screenshot](\"https:\/\/blog.pickfu.com\/wp-content\/uploads\/2022\/10\/Screen-Shot-2022-10-06-at-3.23.08-PM-1.png\")
<\/a><\/figure><\/div>\n\n\n2. Clarify your unique selling proposition (USP) <\/h3>\n\n\n
3. Build your brand <\/h3>\n\n\n