by Marco Angioni II

Created on: March 14, 2011   Last Updated: March 16, 2011

In order to be competitive and remain competitive in a particular marketplace, you must constantly be aware of your competitors’ practices, products, and services.  Doing so will enable you to create an effective marketing strategy that will drive business away from your competitors and towards your business.   

-What is Competitive Intelligence?-

Competitive intelligence is the practice of formulating effective marketing and business plans based upon the perceived needs of the customer and strengths of your business, and/or on the perceived weaknesses in a competitor’s products or services.  In situations involving businesses without large marketing budgets, competitive intelligence can help a business compete against larger, wealthier businesses.  In situations involving businesses with large marketing budgets, competitive intelligence can help a business dominate the marketplace.

-How Do Marketers Use Competitive Intelligence?-

Most marketing campaigns involve branding or name recognition.  The goal is to advertise your company’s name to a point that it is recognizable to your target market.  “Building your brand” is more focused on creating loyal customers through first contacts.  In other words, the purpose of “building your brand” is to establish your company as the first and best choice among your competitors.  This type of marketing focuses only on your business’s strengths and almost ignores the competitors.  The goal is to have your target market focus only on your business such that customers think only of your business’s name if they want a particular product or service.  

On the other hand, there are some marketing strategies that focus on the weaknesses of the competition and provide the customers with a “better” alternative, which alternative is your business.  Unlike other marketing campaigns that build customers through the strength or your business, focusing on the weakness of a competitor creates disdain and contempt for your competitor, with the goal of causing customers to try your products and services, not necessarily because your business is stronger or better, but because the customers are fed-up with your competitor.

Competitive intelligence will enable you to determine which marketing plan would be most effective with your customers at the least cost.  If you can extract this information

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