Market research and competitive intelligence are strategic business tools used to analyze the professional environment. Market research focuses on discovering areas of opportunity and improvement, while competitive intelligence analyzes the status and activity of competitors. Both complement each other as business strategy tools.
Market research and competitive intelligence are related in that they are both strategic business tools. Both tools are used by business owners and other business analysts as a means of analyzing the professional environment. While market research is more about analyzing the external business environment in relation to discovering areas of opportunity and improvement, competitive analysis is more concerned with the status and activity of competitors in a market in relation to its implications for a company.
The relationship between market research and competitive intelligence can be seen from an analysis of the two concepts. Market research involves a study of the business environment in which a company operates, including factors such as consumer trends, preferences, behavior, demographics, and a study of other similar products on the market. The goal of market analysis is to obtain this information in order to direct it towards a more effective marketing strategy. For example, if during the market research process a sneaker manufacturer discovers that its main customers are 12-28 year olds, it will focus its marketing efforts towards this demographic. The information will also allow her to think about marketing strategies that will allow her to win with the older or younger demographic.
Similarly, analyzing the link between market research and competitive intelligence can be achieved by looking at the full scope of competitive intelligence. This involves analyzing the actions and activities of competitors with the aim of using intelligence to make strategic business decisions. An important factor to note is that there is a fine line between competitive intelligence and industrial espionage, which is an illegal act in most countries and territories. Competitive information can be gleaned by analyzing the competitor’s business strategy. This may include analyzing their products, marketing strategy and business model.
The main difference between market research and competitive intelligence is the fact that competitive intelligence is mainly practiced at the macro level whereas market research is practiced at the micro level. Both complement each other as business strategy tools. They may also be self-contained as a means of developing corporate strategy, depending on the objective and circumstances. For example, a business target more interested in analyzing consumer demographics is better suited to market research.
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