What are the Tools and Techniques for Competitive Intelligence Activities?

Competitive intelligence is an important part of your marketing strategy. Understanding your competition can help you be a more successful company, and market to those who will get the most use from your product or service. The following is a look at the different types of competitive intelligence tools and techniques available-

If you have some time, one great way to get competitive intelligence is to contact government agencies. They can provide you with public record information such as financials. However, this often takes a while.

Online database searches is a faster method for finding competitive information. It usually costs more, can be really expensive, but if the sites you use are legitimate, the information can be worth it. It is important to note, however, that database searches only provide information that is released to the public. You aren’t going to get stuff that you can’t get other ways, you will just get it faster, and pay a little premium for the speed.

One great way to get information you may not find easily available on databases is to contact the company itself and investment community resources. Companies provide potential investors with lots of information, and you can use that information as part of your competitive intelligence.

Surveys and interviews are another way to procure a lot of data, but it is usually a more in-depth look at a smaller portion of the consumer base. This is a great way to see how your current customers feel about your products or about your competitors. Remember it is a deep view from a limited sampling of people.

Sometimes the best way to get the information you seek is to simply observe your competition. Stop in at their retail location. How busy are they? Do they have any new construction in progress (this may indicate expansion)? Often just watching them for a few days can help you get a good idea of the volume they do (how often are they having deliveries or shipments?) Observation is a great tool for determining the current state of a competitors business.

Another technique used in competitive intelligence is to compare your organization against your competitors is to use competitive benchmarking. Using this and defensive competitive intelligence helps you gain a better idea of how outsiders see your business activities, and those of your competitors.

Lastly, a great tool or technique for competitive intelligence is to practice reverse engineering of their products or services. In other words, buy them and take them apart to see competitor's quality and costs. Knowing the specifications of products or services can help you get a clear idea of their cost versus profit, and the level of quality you need to meet to be competitive, etc.