How Do Entrepreneurs Implement Competitive Parity?
To implement the competitive parity method, entrepreneurs can follow these steps:
1. Identify Key Competitors: Determine who your main competitors are. This includes direct competitors offering similar products or services and indirect competitors serving the same customer needs differently. 2. Analyze Competitors' Strategies: Research your competitors' spending patterns, particularly in marketing and advertising. This can involve examining their presence in various media, promotional activities, and digital marketing efforts. 3. Set Your Budget: Based on the data collected, set a budget that aligns with or slightly exceeds your competitors' spending to ensure competitive parity. 4. Monitor and Adjust: Continuously monitor competitors' activities and adjust your strategies and budget as necessary to maintain a competitive edge.