Competitive intelligence, also called competitor analysis, is a process where information is collected, studied, evaluated, and eventually used for purposes of modern-day marketing planning for a product, service, or company. It is a vital component of marketing planning that is meant to determine the risks and opportunities in marketing. By knowing the market environment of a product, service, or company, the marketing planners can better map out a most suitable direction amidst market competition.

Information is vital in competitive intelligence. This information abounds in the market. A keen marketing organization will have its ear to the ground and know the market like the back of its hand. The aspects of observation and surveillance, just like in any intelligence undertaking, should also be present in competitive intelligence.

The dynamic marketing organization will have informants on the ground that can do surveillance on the company’s competitors, old and emerging. Information is also available through the various media. A pro-active marketing organization will keep it ears and eyes open to any movement, behavior, and activity within the market it plays.

Raw information is useless without the proper processing of it. A marketing organization can gather all the information it can but without processing it into useful intelligence, that wealth of information can be rendered useless. The processing of information, especially regarding newly emerging competitors, should undergo thorough evaluation and analysis. The analysis should be used in planning an effective marketing strategy, and ultimately executing the plan, to keep the company ahead of its competitors, both old and emerging ones.

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