Market Research: 5 Tempting Traps to Avoid

September 7th, 2012 by | Print

market research

Let’s say you’re launching a new business or your current model is struggling. You need ideas for attracting ideal customers and turning your investment into income. You make the wise decision to perform research and get the inside scoop on how other competing companies are succeeding. By reviewing their information, you see a variety of marketing strategies and tactics that are paying off. Do you take the high road and use your new-found insight to navigate your own path to success or do you follow the dark path of copying your competition hoping you can achieve the same results?

Spying on the competition isn’t bad. It’s actually wise. Market research helps you analyze the strengths of your competitors and identify the gaps in the marketplace. It’s how you incorporate that information into your marketing plan that makes the difference. While it’s tempting to think, “If that’s what’s working, let’s do that, too,” you’ll never beat your competition trying to copy them.

Here are five traps uninspired companies fall into with the information they collect that you should avoid.

 

1. Using the Same Keywords

It’s common for direct competitors to have some duplicate keywords. For example, let’s say there are two competing SEO companies: ABC SEO Firm and XYZ SEO Consulting Services. Since their service offerings and their target markets are very similar, they will likely include many of the same keywords when optimizing their branding site, in their social media profiles and content and other internet marketing campaigns. However, at some point they need to differentiate themselves, whether it’s by locale, target market, some service offerings, or other value proposition. Whatever the differentiating factors may be, they should be reflected in the keyword strategy.

 

2. Bidding on Branded Keywords

Some companies will go as far as to try and compete for branded keywords. Let’s stick with the same example in the preceding point. XYZ SEO Consulting Services wants to capture market share from ABC SEO Firm who has been kicking their butt. So XYZ decides they’re going to engage in a PPC campaign bidding on branded terms like “ABC SEO Firm”, “ABC SEO”, and the like. Obviously, if someone is entering “ABC SEO Firm” into Google, they’re looking for ABC. XYZ knows this and hopes that having their ads appear on the SERPs alongside the organic ranks for ABC will allow them to siphon off some of the clicks on the page. Is this a wise strategy or a dirty trick?

Here are the downsides to this strategy:

  • People trust and click on organic links far more than paid ads
  • If someone is typing in a specific brand name into a search engine, links with the correct branded name will receive far more clicks
  • You run the risk of being viewed as a company that engages in below the belt tactics won’t help your company image

 

3. Copying Content

Some companies that struggle with writing creating original content will go so far as to copy content form high ranking sites and just simply change any branding. There are several issues with this dark path approach:

  • Marketing doesn’t work in independent chunks. Strong marketing presents a cohesive, integrated, concise message. If you copy content in chunks, you will be sending mixed messages to your market. Conflicting message don’t work.
  • Today’s customers are tech savvy. With the easy access to information, they will likely research a couple of possible options before they make a buying decision. If they see identical content replicated between companies, it raises red flags. Upon further review of the companies, prospects will usually be able to identify author and the copycat. If you’re the one copying content, it won’t bode well for your credibility, which often results in a loss of profitability.
  • Google dings copied content. Your goal is to rank high on the SERPs for your keywords. Copying content won’t get you there.

 

4. Mimicking Product / Service Offerings and Pricing Structures

There has to be something that differentiates you from the competition. Copying the competitions’ product / service offerings and pricing structures isn’t going to help you make your mark. Yes, you may have many similarities just as you will with the keyword selection mentioned above. However, if a customer sees the same products / services and pricing, why are they going to choose you over the competition?

 

5. Buying Domain Names Similar to Theirs

This is similar to bidding on branded keywords mentioned in the third item above. For example, let’s say that ABC has the domain abcseofirm.com and XYZ wants to try and convert some of their clicks. They go out and buy abcseofirm.net, abcseofirm.info, and the other extensions with all domains forwarding to their branding site at xyzseoservices.com. They figure that some people will type in the wrong URL, hoping that when people arrive on their site, they’ll see the similar services and decide to contact them instead of taking the time to retype abcseofirm.com. Again, while this may bring you some traffic, it also flags your company as having questionable ethics. Do you buy form companies you feel you can’t trust?

 

Market research is critical to getting a good lay of the competitive landscape. However, it is best to use this insight to understand where the gaps in the market exist so you can apply your talents to fill the holes. If you simply do what the competition is doing, you’re playing a game of follow the leader. You can’t be a leader and a follower. So which do you want to be?

If you need help performing market research and devising a strategic marketing plan, contact me. I’m here to help.

All the Best,

Doug Dolan
The Solopreneur’s Guide

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