Competition is essential for growth, but only when a business properly evaluates its competitors and betters itself to keep up. Even in marketing, analyzing the competition is healthy and can help inspire you to learn and adapt the business to better meet consumer needs.
Part of the way to do this is by understanding direct and indirect competition and how each can impact your work. Once you know the differences, you can determine how to best identify and evaluate your competitors — both direct and indirect.
When you think of a marketing competitor, you likely think of your direct competitors. Direct competitors are other businesses offering the same services for the same client needs in the same market as you.
So, let’s say your marketing firm primarily works with restaurants in the western U.S. There are certainly other firms focused on restaurant marketing specifically in the western U.S., and those firms would be your direct competition.
Even the smallest markets will have direct competition, which is important to prevent monopolies.
