Armed with research insights from social listening, reviews, and customer conversations, you're ready for the next crucial step: understanding your competitive landscape.

Before you can position your brand effectively, you need to know who else is fighting for your audience's attention and how they're doing it.

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Why might it be important to understand competitors before finalizing your brand positioning?

You're not just competing against obvious rivals. Consider three competitor types:

Direct competitors solve the same problem the same way. Indirect competitors solve the same problem differently. Substitute competitors solve different problems that compete for the same time/budget.

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If you run a meal kit service, what might be an indirect competitor?

Start your competitive research where customers naturally compare options. Check their websites, social media, reviews, and ads. Notice their messaging, pricing, and target audience language.

Pay special attention to their customer testimonials - they reveal which segments each competitor serves best.

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Where do customers typically compare options in your industry?

Now map competitors to your segments. Create a simple grid: your segments across the top, competitors down the side. Mark where each competitor clearly targets each segment.

Look for patterns. Which segments have many competitors fighting for attention? Which have few or weak players?

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What's a common term for a segment that only a few competitors serve effectively?

Empty spaces in your grid are opportunities. These represent underserved segments where customer needs aren't being met effectively by current competitors.

But verify this by checking: are competitors ignoring this segment because it's not profitable, or because they just haven't noticed the opportunity?

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How might you verify whether an "empty" segment represents a real opportunity?

Crowded segments aren't automatically bad - they prove market demand exists. But you'll need strong differentiation to win there.

Look for gaps even within crowded segments: different pricing, better user experience, superior customer service, or unique positioning angles competitors are missing.

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What's one way to differentiate in a crowded segment besides pricing?

Document your findings clearly. For each segment, note: which competitors serve it, how well they serve it, what messaging they use, and what opportunities you see.

This competitive intelligence will directly inform your positioning decisions and help you speak to underserved customer needs.

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What's the first thing you'll do to apply this competitive analysis framework?

Type

Multiple Choice

Practice Question

You're analyzing competitors for your project management software. You notice that while many tools target "enterprise teams," few address "freelance creatives" effectively. What does this suggest?

A. Freelance creatives don't need project management
B. This segment might be underserved and worth exploring
C. Enterprise teams are more profitable than freelancers
D. You should focus on enterprise teams instead

Suggested Answers

• A
• B - Correct
• C
• D