Marketing teams have a goal of surpassing the revenue margins and market growth rates of competitors in the same market.
Marketers plan their strategic marketing practices around competition. By looking at the competition, marketers can determine the companies’ competitive advantage, focus on innovation, and provide better service for customers. The analysis of these factors allows marketing teams to better appeal to their customers.
The three levels of competitors are shown below:
For example, Pepsi and Coca-Cola have a direct competition relationship as they both sell soda products with the same revenue goals.