Competitive intelligence also has to do with determining what your business rivals will do before they do it. Strategically, it is the power to gain foreknowledge of your competitor's plans and to plan your business strategy to countervail their plans. As you might expect, this will involve many methods at the tactical collection level, but it will also require integration into your existing information infrastructure, analysis, and distribution of the information. In summary, it is the calculation of business decisions on the grounds of that information and the analysis of same. This is the "intelligence" part of the formula.

Competitive intelligence and competitive analysis are the processes of collecting, storing, and analyzing acquired information and applying said information about products, services, customers, and competitors to develop a competitive advantage. This process is an ethical and legal business practice with a focus on external business environments, and coveting this gathered information to yield a competitive edge.

In a former Blog, I talked about Using Competitive Intelligence for your Marketing Strategy. I received many positive comments about this when I wrote a blog on the topic. In the last chapter, I shared a true story about what can happen if customers inadvertently go to a competitor's company.

The story illustrated the importance of creating an overall marketing strategy. It also set out the importance of setting one's company apart from a competitor while developing a positioning and marketing strategy.

This enabled Company A to position their business for additional growth by redefining their business by knowing and realizing the differences between their company and their main competitor's company. Differentiation is more than simply being different. It is about the unique differences the customer perceives to be the reason they buy from you versus a competitor. There is a systematic process for developing an effective positioning for your business. This systematic process requires you to know your target markets and your main competitors, and it takes time.

Determine How Your Company is Positioned Against a Competitor

Here is a list of considerations to make when determining how your company is positioned against a competitor.

* What products or services are offered by competitors that are not offered in your business? Are you and the company's employees (if any) as well qualified to serve as specialists or customer problem solvers as the competition?

* How does the competition treat their customers? Is their service prompt and efficient?

* Does the competition accept credit cards or charge cards for their services that are not accepted by your company?

* How does your corporate brand sensory image compare to the competition?

* Can you or the employees answer questions about your competitor's products and services knowledgeably and objectively?

* Who keeps complete records on each customer, you or the competition?

* Do you have a system in place to mail a thank-you letter or send an e-mail after each sales call, whether or not a sale was made? Does the competition?

* What equipment does the competition use that is better than yours?

* As you watch the product display of the competition, do the products seem to be moving off the shelf?

* How soon are the products marked down or moved to a sale table?

* How many times has the competition's name been mentioned in the press or the newspapers in the past three months? (Count only the times for free publicity such as announcements, promotions, seminars, sponsorships, speeches, donations, etc.) How many times has your name or the company name been published for these reasons?

* How much advertising (number and size/time) does the competition do each month? How much does your company do?

DJ Heckes, CEO & Author
Full BRAIN Marketing
http://www.fullbrainmarketing.com