Blog Post

I’ve worked with a lot of businesses over the years, and if there’s one thing that comes up almost every time, it’s this question:
“Isn’t competitor analysis the same thing as market research?”

Spoiler: It’s not.

While they might look similar on the surface—both involve data, charts, and strategy—they serve two very different purposes. Think of market research as listening to your customers, and competitor analysis as studying your rivals. Both are essential, but they answer different questions.

Let’s break this down in a way that’s simple, practical, and maybe even mildly enjoyable.

• What market research actually means (no fluff)
  
• What competitor analysis involves
  
• The key differences and why they matter
  
• How I use both with clients
  
• Mistakes you’ll want to avoid
  
• Where to start depending on your business needs
  

When a business wants to launch something new—or figure out why their product isn’t selling—this is where I start. Market research is all about your audience: their needs, behavior, pain points, and buying habits.

It answers questions like:

• Who is your ideal customer?
  
• What do they want that they’re not getting?
  
• How are they making buying decisions?
  
• What’s keeping them from saying yes?
  

To get that data, I use things like surveys, interviews, and online behavior tools. And no, that doesn’t mean sending out a hundred-question Google Form that no one finishes.

Here’s a real-world example:
A client of mine in the e-learning space wanted to expand. We ran customer interviews and discovered that users were overwhelmed—not by content, but by how it was organized. That insight changed their entire course layout, and engagement shot up.

If you’re just starting with research, my Beginner’s Guide is a great place to learn the basics.

Now, let’s talk about the “other guys.” Competitor analysis is your look into how the market is already being served—and how well.

This is where I evaluate:

• What your direct (and indirect) competitors are offering
  
• How they’re pricing
  
• Where they’re strong
  
• Where they’re weak
  
• How their customers feel about them
  

Unlike market research, competitor analysis doesn’t tell you what customers want. It tells you what customers are currently choosing—and why. That’s a major distinction.

For example, while working with a B2B service provider, we found that their main competitor had a clunky onboarding process. Guess what we emphasized in our campaign? Seamless, fast onboarding. It worked. Lead conversion improved 3x in two quarters.

Want to go deeper into this? My article on Competitor Analysis Techniques outlines how I approach this step-by-step.

Let’s make this simple.

Feature	Market Research	Competitor Analysis
Focus	Customers	Competitors
Main Question	What do people want?	Who else is offering it and how?
Tools Used	Surveys, interviews, trend tools	Website audits, pricing studies, public reviews
Goal	Validate ideas, understand demand	Find strategic openings

They’re not rivals. They’re partners. I’ve seen too many businesses pick one and ignore the other. That’s like picking a single oar in a rowboat and wondering why you’re spinning in circles.

Let’s say you find out there’s strong demand for a new type of organic skincare product (great—market research).
But if three competitors are already selling it with better packaging, a lower price, and free shipping—do you still launch? Probably not, at least not without a clear differentiator.

That’s why I always use both methods together. Market research tells me what people need. Competitor analysis shows me if there’s room to enter—or room to win.

If you’re in the early stages of launch planning, take a look at Avoid Costly Mistakes Before Launching for a simple checklist based on this exact approach.

Let me save you some time. Here are the top mistakes I see when businesses try to do this alone:

• Relying too heavily on assumptions: Just because you like an idea doesn’t mean your customers will.
  
• Overfocusing on competitors and forgetting the audience: You’re not trying to impress your rivals. You’re trying to solve customer problems.
  
• Treating market research as a one-time task: Things change. Keep it current.
  
• Comparing yourself to the wrong competitors: A common mistake—especially with startups.
  

These aren’t just theory. I’ve written about how to fix these in Market & Competitor Research 101, which includes real case examples and corrections.

In my projects, I rarely do one without the other. Here’s how it usually plays out:

1. Start with the customer: What do they care about? What do they ignore?
   
2. Zoom out to the competition: Who’s already offering a solution?
   
3. Overlay the insights: Where’s the opportunity to offer something better or different?
   

For a fintech client last year, we found that while most competitors were focused on features, customers actually cared more about customer service and ease of use. That insight led to a total messaging shift—and a 40% increase in trial-to-paid conversions.

Want to see more about that framework? You might like How to Build a Strategy Using Market & Competitor Research.7. Where to Start (And Why It Depends)

Not every business needs to start in the same place.

Here’s how I usually decide:

• If you’re launching a new product or entering a new market: Start with market research.
  
• If your sales are flat or you’re losing ground: Start with competitor analysis.
  
• If you’re developing a strategic plan: Use both—trust me, they’ll feed into each other.
  

Need help figuring that out? My breakdown on Understanding Your Industry Through Research can help you pinpoint exactly what to focus on.

You don’t need a $10,000 platform subscription to get started. Here are a few of my favorites:

For market research:

• Google Trends
  
• AnswerThePublic
  
• SurveyMonkey (or just smart use of Typeform)
  

For competitor analysis:

• Similarweb
  
• BuiltWith (great for tech stacks)
  
• Review mining (Amazon, G2, etc.)
  
• SEMrush for marketing insights
  

Want the full breakdown? I covered the top tools I use daily in Top Tools for 2025.

Market research and competitor analysis aren’t interchangeable. But when used together, they’re powerful. They give you both direction and positioning—two things every business needs, whether you’re a one-person startup or a Fortune 500 company.

Here’s how I think about it:

• Market research tells you what to build.
  
• Competitor analysis tells you how to sell it better.
  

Ignore one, and you’re flying half-blind.

If you’re ready to use both the smart way, I’ve got plenty of tools and frameworks waiting for you in my other guides. Or just reach out. I’m always happy to talk strategy—especially if there’s coffee involved.

Q1: Is competitor analysis part of market research?
No. They’re separate methods that often work together, but competitor analysis is not a subset of market research.

Q2: Which should I start with?
That depends. If you’re exploring a new idea, begin with market research. If you’re trying to outperform others, competitor analysis is your friend.Q3: Can I skip either one?
Technically, yes. But you’ll likely miss something critical—either customer demand or market opportunity. I recommend doing both, even at a basic level.