Market monitoring: the main components

The competitor monitoring strategy consists of five main elements. Each of them plays an important role in identifying competitive advantages, potential markets where your product is not yet represented, and in building an effective business strategy.

Content List

#1 Price Monitoring
#2 Product Monitoring
#3 Promotional Campaigns
#4 Inventory Monitoring
#5 Media Monitoring

#1 Price Monitoring

E-commerce has been a catalyst for shifting power from retailers to consumers. Now, more than ever, customers can easily compare prices between different stores at any time and from any device.

And now, the lowest price for similar products from different stores is the driving force behind any business’s sales. That means a consumer will buy the same dress where the price is lower. Therefore, retailers face the challenge of continuously monitoring the market. They need a deep understanding of the competitive landscape and the pricing strategies used by competitors.

Boomerang Commerce conducted an analysis that showed the popular online store Amazon is ahead of its competitors primarily because of its engaging content and smart pricing strategy: it increases the price of less popular products that complement the main ones. And customers will still buy this product because, without it, the main product won’t work or it is an essential part of it.

#2 Product Monitoring

It is also necessary to monitor the product assortment of competitors. Innovation and market positioning remain key factors. If you have complete information about the product range of at least your main competitors, you will have a crucial advantage. Data on product launches and possibly discontinuations will help you timely supply the right and in-demand products to grow your business.

#3 Promotional Campaigns

For any consumer, discounts and other promotional campaigns are a powerful driver of purchases. However, many retailers settle for generic promotions that are common among competitors. For example, free shipping or a discount on orders over a certain amount. Customer satisfaction is not a competitive advantage but a basic obligation of any business. It is crucial to stay proactive in the face of innovations and rely on analytical data.

The main goal of competitor monitoring is to gain valuable insights from primary data, which will help a business plan an effective promotion strategy and predict competitors’ future moves. There are several possible decisions: ending partnerships or, on the contrary, starting new ones with other retailers by offering more attractive discounts.

#4 Inventory Monitoring

Expanded product supply chains affect sales strategies and pricing for most e-commerce managers. Retailers often face issues where the stock level of a specific product is critically low. But this can be a competitive advantage for others since they can fulfill customer orders faster.

You need to be aware of your competitors’ stock levels. If they are low, take advantage of this. Create your competitive advantage—such as consistently replenishing stock. This is relevant year-round but becomes especially beneficial during peak shopping periods when sales occur on weekends and even on tough Mondays.

#5 Media Monitoring

For experienced online marketers, media monitoring offers a wealth of potential opportunities. Online retail allows customers to easily share their shopping experiences, both negative and positive. And each such review can attract a competitor’s customers to your business.

Positive competitor reviews should also be taken into account: they should be thoroughly analyzed to determine what made the deal successful. The obtained information should then be compared with your company’s marketing processes. If a competitive advantage lies in a product or feature you do not offer, it should be introduced quickly to counteract the competition. In this way, the competitive advantage will no longer be an exclusive factor, as you will offer the same thing.

Negative reviews are also valuable information for retail marketing. You can use them to identify your competitor’s weaknesses and eliminate them in your sales funnel. This way, you can create marketing materials that highlight your key advantages in areas where competitors fall short.