| The role of marketing in business may surprise | | | | competitive analysis will expose untapped needs |
| you. Many books and seminars on marketing | | | | and help you avoid marketing to heavily saturated |
| begin on how to develop the Marketing Plan. I | | | | markets.RULE: When competing in a saturated |
| believe this to be a mistake.You shouldn't begin | | | | market, define and maintain a tightly focused |
| thinking how you are going to market something | | | | niche market for your business.If you find there |
| until you first determine if you have something to | | | | are many web sites marketing a similar product |
| market. You also need to have the ability to | | | | and not enough people are actually buying to |
| develop and service your product; will it work the | | | | make your product idea profitable, it is better to |
| way you say it will work; are there no adverse | | | | find out before you launch your Marketing |
| legal ramifications? Finally, can you sell of offer it | | | | Campaign.2. Newsgroups, Discussion Boards,Chat |
| for a profit?Finding your Niche MarketTo begin, | | | | RoomsBe still, and listen. People will TELL you |
| you need to find a product that people need. | | | | what they like and don't like; what they're looking |
| Think back in your life. Was there any problem | | | | for. These forums are frequently visited by |
| that you felt was not resolved completely? Was | | | | people seeking advice. By monitoring these |
| a solution presented to you that could have been | | | | discussions you will discover the "hurts" that need |
| more complete? Still no ideas?Then seriously | | | | to be filled.This is a great way to find potential |
| contemplate and record the following: | | | | products or service ideas. If the same question is |
| | | | repeated, there are probably hundreds and, |
| What kind of things are you interested in? | | | | perhaps, thousands of people wondering the same |
| Tennis, Books, Music..... | | | | thing. Some good places to start: |
| Do these interest border on Passion? Football, | | | | ThreadWatch |
| Writing, Collecting..... | | | | Webmaster World |
| Where is your Knowledge base? Is there any | | | | CashKeywords |
| subject or topic that you know a lot about? | | | | Google Groups |
| Are you the person people come to for answers | | | | A search in any of the major search engines will |
| - asking your advice or opinion? | | | | provide several good boards and chat rooms.3. |
| Answer the above questions. Consider each point | | | | Customer UseIf you already have an established |
| carefully; don't be afraid to consult with friends, | | | | customer base, send out an email survey. 80% |
| family and colleagues. And be completely honest. | | | | of your continual sales come from 20% of your |
| When you pursue a business that you are | | | | client base. Statistics have shown that up to 36% |
| passionate about, something you really like to do, | | | | of your current client base will purchase form you |
| your chances of success in business increases | | | | again if you have something similar to offer.4. The |
| dramatically.Finding the Hurt The product or | | | | Reviews Are InThese sites are used by people to |
| service you wish to develop should be related to | | | | either rave or complain. This makes it a gold-mine |
| something you are interested in. By promoting | | | | of information of how the public perceives the |
| your interests, it will feel less like work, and more | | | | competition. |
| like fun. After all, wouldn't you rather "work" at | | | | Cunsumer Review |
| what is fun?Many people make the mistake of | | | | Consumer Search |
| developing a product first, then trying to find a | | | | Epinions |
| market. That is backwards. You must first find | | | | 5. Competitive AnalysisWhat exactly is your |
| the demand, and then fill it. This will guarantee the | | | | competition offering? What solutions are they |
| success of your product, as people are already | | | | offering? Where are they vulnerable? To beat the |
| looking for what you are about to develop. By | | | | competition, you need to understand the |
| filling this need, you can actively focus your | | | | competition.The purpose of Competitive Analysis |
| energies on marketing to the audiences that will | | | | is t to determine which business strengths are |
| provide the highest sales profit.I. Finding the Right | | | | needed to be competitive in the market. You also |
| Markets: Examine your list. You now must | | | | need to determine how the competition will react |
| research and find markets that relate to your list | | | | to your strategies BEFORE you implement |
| of interests. Brainstorm a list of general, potential | | | | them.Your competitors could be your greatest |
| markets for each of your interests. Do not be | | | | source of inspiration. Once you have chosen your |
| concerned if your markets seem too broad or | | | | area of interest - start a thorough market |
| general. Utilize friends, family and the Internet - | | | | research.To analyze the competition, gather |
| searching keywords related to your interests.II. | | | | information on: |
| Research the Competition:Now that you have | | | | Their Competitive Market Share |
| your list of specific markets, it's time to examine | | | | Their Current Strategies |
| the competition -both online and off. Research | | | | Future Goals |
| businesses that cater to the specific markets on | | | | Where they are vulnerable |
| your list.For Example: Artists might be segmented | | | | What will provoke retaliation |
| into oil painters, watercolor artists, sculptors, | | | | copies of all their marketing materials |
| advertising. Examine how existing businesses cater | | | | The more you find out, the better you'll be able |
| to these markets. What approach do they take | | | | to find a weakness, and then develop a strong |
| to the ceramic artist? Are they offering fr*e | | | | Unique Selling Proposition. Make your product |
| advice, selling it, providing products?Finally, take a | | | | better, faster, easier, safer, and more |
| look at how well these businesses are marketing | | | | cost-effective. Do whatever it takes to entice |
| themselves to the market segment. How | | | | customers to buy your product or service over |
| organized and professional looking are their | | | | your competitions.IV. Customer Analysis : : How |
| sites?Two great tools to compare companies is | | | | Accurate Is Your Research?At this point, |
| Alexa and Marketleap. Alexa is comparatively | | | | determine if your research is accurate? Talk to |
| accurate, and can give you details for a site | | | | members of the market and confirm it. |
| including: | | | | How big of a problem is it for them? |
| Traffic Ranking | | | | Is it a minor nuisance, or is it something they |
| Related Links | | | | would pay to obtain a solution for? |
| Link Saturation | | | | How much is that solution worth to them? |
| Contact Information | | | | |
| Site, User Reviews | | | | 1. Validate your information; get on the phone, |
| While most of the information is accurate, it can | | | | run surveys, chat in newsgroups. Do research to |
| be abused. I have found several Reviews coming | | | | see if anyone else is currently offering a solution |
| from competitors with less than flattering | | | | to this problem. If they are, what are they |
| remarks. The comments were unfounded and | | | | charging and how good is the service?2. Customer |
| only used to try and reduce the credibility of the | | | | Interest: Find out if customers are interested in |
| actual site. I also found Contact Information slow | | | | the product or service. It may be that there is |
| to be updated. On the whole it is a great tool and | | | | already enough products in that niche, but it lacks |
| worth utilizing.Marketleap will help you compare | | | | in services to help use the products.3. Determine |
| sites showing Link Popularity, Search Engine | | | | the general price range. Can you offer a price |
| Saturation and Keyword Verification. Their Link | | | | advantage? Determine the price-sensitivity of |
| popularity check is one of the best ways to | | | | your future, potential customers. If the |
| quantifiably and independently measure a website's | | | | competition is constantly cutting costs to gain |
| online awareness and overall visibility. Simply put, | | | | new customers, this is a warning flag.4. What |
| link popularity refers to the total number of links | | | | gender is your potential market? What is their |
| or "votes" that a search engine has found for | | | | income level? What level of education do they |
| that website.Search Engine Saturation simply | | | | have? Their geographic location? These are |
| refers to the number of pages a given search | | | | important factors in order to determine how |
| engine has in its index for a website domain. Not | | | | lucrative your market will be, as well as how to |
| all search engines report this information but | | | | best approach and advertise.5. Most importantly, |
| enough of them do to create some meaningful | | | | What motivates the market to buy? Do they |
| benchmarks for search engine marketing | | | | react to a price drop? When you understand your |
| campaigns.The Keyword Verification Tool checks | | | | audiences' motivation, you'll be able to appeal to |
| to see if a site is in the top three pages of a | | | | what motivates them to |
| search engine result for a specific keyword.III. | | | | buy.Conclusion:Remember to find the problem |
| Meet the Market Demand: Now it's time to find | | | | before you try to develop a solution. It is much |
| the greatest need. There are several ways to | | | | more lucrative to find out what your potential |
| research this:1. Research Keywords To narrow | | | | market is searching for and then filling that need. |
| down your niche market utilize tools such as: | | | | Choose a niche market from your interests |
| WordTracker | | | | Research keywords to find what the market is |
| Overture Term Suggestion - gives a list of | | | | already searching for |
| related searches and how many times those | | | | Research existing niches and improve on existing |
| terms were searched in Overture during the | | | | products |
| previous month. | | | | Survey current customers for potential products |
| Search for terms that are frequently searched | | | | Your business success hinges directly on choosing |
| for by your target market - but are not being | | | | a product that the public already wants and then |
| used effectively by your competition. This | | | | providing it. |