Competitive intelligence is the action of overall definition of analyzing everything the competitors are doing. Therefore, competitive intelligence is an organizational act and responsibility for early identification of the strengths and weakness in the market and being more relative to the entire environment, competitors, technologies and customers.Competitive intelligence has much significance to organizations. One of the importance competitive intelligence is the differentiating value. This is where a company is able to learn how its competitors produce their products and learn on how to produce its products in a different way with a feature that the competitor’s product did not have.Competitive intelligence is also important when companies are producing the same products in customer analysis. This is because through the study of the competitors surveys a company will be able to examine them and luckily find studies that it can conduct and provide useful insight into customers focus.It is also important in the setting of the price of it product. This is through a clear understanding of how the competitors set their prices. When a company finds out that its competitors are advertising low prices, then it can advertise on best value of the product instead of price.The other importance of competitive intelligence is to develop new channels of communication. This is through the competitor’s use of websites and social media a company can identify new ways of marketing its product.The newly emerging competitors can be identified through the supply based approach. This is through identifying how similar the competitors are similar in terms of technology, product offered and strategy employed by the company. The other way of identifying new competitors is through the demand based approach which identifies the competitors’ in terms of customers. This is through identifying whether the competitors have many customers of their brands than the company itself.The two types of buyers and consumers are those consumers who plan and start their shopping at the beginning of the year. The other type of consumers and buyers are those who wait until the last hour and do the shopping according to the income and the offers.The type the buyer affects market's strategy through the alternatives they have between the products and the brands produced by the company for marketing. This is because these types of buyers make their decisions on a daily basis and it becomes hard for firms to understand and analyze its consumers. These alternatives lead to the failure of the company to meet its objectives of marketing its product to the buyers. Through the buyers tastes and preferences also affect the marketing strategy because firms are not able to identify what consumers will demand in a particular time therefore, fails to plan for huge supply of the product they produce.An organization can know that its market is appropriate to the market target through is through a clear understanding of the consumers behavior. This will lead to high profits because the organization will be able to supply what is demanded at a set time. Gathering information about consumers help firms to identify their market target and gets aware of the strengths and weakness it may experience in the process of marketing. Through this action, a long-term relationship between the company and the loyal consumers will be built, and this will lead to high profits to the company.
References
Papatheodorou, A. (2006). Corporate rivalry and market power competition issues in the tourism industry. London: I.B. Tauris.
Trout, J., & Rivkin, S. (2010). Repositioning marketing in an era of competition, change and crisis. New York: McGraw-Hill
