158 Marketing Dynamics Copyright Goodheart-Willcox Co., Inc. • Competitor’s product. One of the most efficient ways to evaluate a competitor’s product is to buy it. After a product is obtained, the price and packaging can be reviewed as well as its features and benefits. • Trade shows. A trade show is a large gathering w of businesses for the purpose of displaying products for sale. A great number and variety of businesses typically attend trade shows. The competition will probably have catalogs, brochures, marketing pieces, and other infor- mation available at their exhibits. Listening to customers interacting with the competition can provide valuable information. • Sales team. A company’s sales team is one of the most important sources of competitive informa- tion. Sales people develop relationships with their customers and will likely hear comments about the competition’s products and sales strategies. It is important to make ethical decisions when investigating the competition. The tactics used should not put customers in an uncomfortable position to provide you with information about a competitor. Each company uses its own format for this analysis. An example is shown in Figure 9-3. The analysis can be completed by first identifying the names of the primary competitors. Information about price, features, benefits, and other informa- tion about each company is recorded in the anal- ysis. Once the analysis is complete, it can be used to evaluate each competitor and determine if they pose a threat to take business from the company and why. A competitive analysis is an important component of a marketing plan. After the competitive analysis is complete, information about the competition can help a business develop strategies necessary to main- tain its current market share or take away busi- ness from the competition. Through evaluation of the competition, a business can analyze its own company’s goods or services and determine where it excels or lacks in features and benefits. The competitive advantage of a product or busi- ness is offering better value, features, or service than the competition. The competitive advantage is the answer to the question: “Why will customers want to buy the product from this business instead of from a s competitor?” Having an advantage over competitors tends to increase sales, which is necessary for most companies to make a profit. drserg/Shutterstock.com A trade show is a great way to find information about the competition. How does information about the competition help marketing efforts? Competitive Analysis Variables Your Company Competing Company A Competing Company B Competing Company C Price $28–$50 $40–$100 $30–$60 $20–$80 Sizes S–XL S–XL S–XXL XS–XXL Designers Well known High end Knockoff Well known and knockoff Monogramming Yes Yes No No Special order No Yes No Yes Continental US shipping $0 $4–$6 $5.00 flat fee $2.99–$4.99 Physical stores Yes Yes No No Goodheart-Willcox Publisher Figure 9-3 A competitive analysis is a tool used to compare the strengths and weaknesses of a product or company with its competitors.