Topic: Strategy

How To Classify A Competitor/manfacturer

Posted by k.pohlman on 500 Points
I'm in a unique industry that serves both B2B & B2C customers to a vast range of industries and applications. I've been tasked with segmenting our competitors. I have them classified as indirect and direct; however, half of the direct competitors are also 'partners'. We are distributors of their products. That said, what label/classification would they be?
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  • Posted by mgoodman on Accepted
    Don't let yourself get trapped by thinking there are only two possibilities -- direct and indirect. In fact, having multiple classification categories can lead you to more effective segmentation. The whole idea is to have as many segments as you need to develop a set of marketing strategies that will work effectively (and efficiently) for the company as a whole.
  • Posted by Jay Hamilton-Roth on Accepted
    Would the fact that they are "partners" affect the messaging you were planning for your initial two segments? If so, then why not create four segments: in/direct non/partner (where you mix-match each: indirect-partner, etc.)? Would these 4 segments give you the granularity you seek?
  • Posted by Gary Bloomer on Accepted
    I suggest putting them into the category of 'Partner competitors'.

    Why complicate things any more than necessary?
  • Posted by Mike Steffes on Accepted
    3 categories:
    Indirect Competitors
    Direct Competitors
    Direct Compartners
  • Posted by k.pohlman on Author
    Thank you all. I ended up classifying as Direct, Direct/Partner and Indirect but also added a field for threat level. (Yes/No/Potential). I didn't want to get to granular but want the data to be meaningful in a few ways.

    Thanks again to all who replied.

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