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 analysis is concerned with competitors’ status and activity. Both complement each other and can stand alone depending on the objective and circumstance.
Market research and competitive intelligence are connected by the fact that both are strategic business tools. Both tools are employed by business owners and other business analysts as a means of analyzing the professional environment. Whereas market research is more focused on 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 the business.
The relationship between market research and competitive intelligence can be seen by an analysis of the two concepts. Market research involves a study of the business environment in which a company is operating, including factors such as consumer trends, preferences, behavior, demographics and a study of other similar products on the market. The purpose of market analysis is to obtain this information in order to channel it into a more effective marketing strategy. For example, if during the market research process a sneaker manufacturer discovers that its main customers are young men between the ages of 12 and 28, it will focus its marketing efforts on that demographic. The information will also allow you to think about marketing strategies that will allow you to win with older or younger demographics.
In the same sense, the analysis of the link between market research and competitive intelligence can be achieved by looking at the entire scope of competitive intelligence. This involves analyzing competitors’ actions and activities with the aim of using intelligence to make strategic business decisions. An important thing to note is that there is a fine line between competitive intelligence and industrial espionage, which is illegal in most countries and territories. Competitive intelligence can be gained by analyzing the competition’s business strategy. This may include analyzing your 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 macroeconomic level whereas market research is practiced at the microeconomic level. Both complement each other as business strategy tools. They can also stand alone as a means to business strategy development, depending on the objective and circumstance. For example, a business objective more concerned with consumer demographic analysis is better suited for market research.
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