Competitive Intelligence Vs. Market Intelligence: All You Need to Know to Impress Your Boss
Often, we come across several terms in business that sound more or less the same, but they turn out to be completely different. Before getting into the differences, let us cut to the chase and get to the basic point of similarity between competitive intelligence and market intelligence. Both these types of intelligence help companies […]
Often, we come across several terms in business that sound more or less the same, but they turn out to be completely different. Before getting into the differences, let us cut to the chase and get to the basic point of similarity between competitive intelligence and market intelligence. Both these types of intelligence help companies to gain a better foothold in the market and require considerable amount of accurate research to succeed. So, what is the key difference between the two? Here goes- Competitive intelligence is the strategic study used by companies to understand their industry and track the moves of their rivals. On the other hand, market intelligence is a broader concept which includes the research conducted by a company on the external market it wishes to enter, their competitors, and customers. But that’s not all; there are other factors as well that differentiates the two, curious to know what they are?
Focus of the Data Collected
As discussed, market intelligence gives a larger picture to companies about the market and customers. This means that it is more client focused, which helps companies to understand their customers and the general consumer behavior better. Competitive intelligence is more business focused as it comprises of data pertaining to a company’s competitors and their business strategies.
Digging Deeper into the Data
Customers are in the spotlight in case of market intelligence; therefore, the data gathered in this type of business intelligence involves economic and social statistics of people such as demographics, population, consumption, and demand. On the other hand, competitive intelligence helps companies identify competitor’s strategies, their strengths and weaknesses, the chunk of the market share they own, how their tactics are impacting your business, etc.
The Game Plan
While the ultimate aim of both these strategies is to reduce business risk and up the game in the business, the data focus of both these techniques is very different. Therefore, their application in a formal business plan of a company also differs. Market intelligence is employed by businesses to improve their existing product offerings and develop new and innovative products, which will ultimately result in improved customer loyalty. Competitive intelligence is used by companies to plan specific strategies to overcome the competition from various competitors in the market. Each competitor will have different business strategies and tactics and with the help of competitor intelligence, companies can plan different counter tactics for each of them.