The Market Intelligence Blog

Here are some excellent comments, representative of the discussion around my 2 earlier CI posts —

Andy M – Owner
Hi Bob,
Your intelligence and research on the competition is vital to knowing why customers buy ( or dont Buy ) your product. Much of our work is in the retail arena, specifically consumer electronics and mobile phones… we go to retail outlets, ask the sales staff about a product, and let them talk freely about the pros and cons of each product and the brand as a whole.
Our USP is that at the time, we are wearing a hidden camera and record the whole interaction. With the technology as good as it is, we can then replay the DVD with our client and see how the product is marketed in store AND what the sales people say. Interesting viewing and an excellent sales tool.

Nelson Pérez Alonso – Presidente at CLAVES Informacion Competitiva and Owner, CLAVES Informacion Competitiva
In our experience, we have to control many dimensions of competition, a) what others are doing the companies that make similar products, as our customer and what the entrepreneurs are trying to develop to meet the same needs of consumers b) as being managed distributors or retail distribution channel as to recommend or not our products or services d) positioning in the mind of the consumer to satisfy the needs of our customers.
There is a difference in sgmento B2B in the B2C with large differences in methodology. We are developing intelligence systems, combining desk research, clipping, interviews with competitors, census of outlets, mystery shoppers, consumer surveys even to blind tests.
The key points are the definition of the variables to be monitored, frequency of survey and delivery and fundamentally how to distribution of the information provided within the client company to generate management decision and actions.
All this points of view we think are a little more difficult in Latinamerca because we have a culture more informal, less proffessional, and sistematic but we still continue doing our work and trying to chance minds of enterpreneurs
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Dr. Alexander Linder – Director Corporate Consumer and Market Insights (Swarovski)
Hi Bob,
I am really happy to read what you write in your blog. I am always pushing the direction to tell the marketing guys not to limit competition just to a similar product or a substitute, but rather to see things from a share of wallet point of view. Of course, it depends, what you are buying. If your decision goes in favor of a midsize car, Audi A4, BMW 3 series and Mercedes C Class can definitely seen as competitors. Or if you are looking for a HiFi-system, I think the same is true for Pioneer, Sony, Kenwood etc.
But things change when you look at a “leisure” shopping trip on a Sunday afternoon. You walk through a shopping mall or the aisle of seduction, how I call it. In my opinion, the brand that has the “right” product, makes you feel welcome, can offer you a perfect service and will make a lasting impression will most likely make the race. And that’s not always your brand…
The challenge for me is identifying your share of wallet competitors, because you have to monitor them in a certain way. One way is to ask our consumers about their favourite brands of different sectors, like clothing, jewellery, handbags, leather accessories, electronics etc. and then you ask them about possession of the different brands mentioned. Thus you get the brands, that are most likely in the relevant set of your consumers.
Linked-In group Marketing Research Bulletin
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Sean Campbell – Competitive Intelligence and Qualitative Market Research Professional
Agreed that looking at your own customers for inspiration is good but alone it isn’t the way to plan a long term growth strategy.
Effective CI looks at the current competitive canvas and off of it for threats that are emerging. Otherwise you get blindsided by a competitor who isn’t just looking at gaining insight from their own customers but yours as well. ;).
Solid CI looks forward into the future by pointing out clear opportunities for your business, to the side (to see threats that are “merging into your lane”), and helps you get a higher res version of what moves your competitors have made in the not so distant past.
The short answer is that you need competitive intelligence that looks outward and away from your own customer base as well as good deep intelligence on what your current customers like about what you have today and what they want to see from you in the future.
Linked-In group: Northwest MRA
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Debra Donahue – Vice President Market Analytics and Online Products, Mark Farrah Associates – Health Insurance Data and Market Analysis
Competitive intelligence is about understanding the broader market dynamics which includes understanding customers’ and suppliers’ motivations and drivers, not just competitors. The point of CI is well beyond just understanding what the competitors are up to. Woe to the company whose CI efforts and resources just focus on the competition. Staying aware of the competition so the company is not blindsided, should be one of the functions of CI, but agree that a company fixated on competition will miss one market opportunity after another.
Linked-In group: Medicare Advantage Healthplan Colleagues
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Bryant Holt – Consultant at Sears Holdings Management Corporation
Excellent article. I beleive CI has its place. Information should not be looked upon as single points in time. If we aggregate the information over time and relationships, the CI could be synthesized into meaningful value propositions that could be tested, or used as potential predictors. I don’t belive you saying it, and therefore, would not rule it out.
Linked-In group DuPont Alumni
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David Kaplan -Entrepreneurship Consultant
Hard to argue with looking to customers inspiration and direction; but that begs the question of what options they may have for fulfilling their needs. CI is certainly no substitute for customer focus, though it can help achieve that in a couple of ways. First, by making it clear what else appeals to customers (in addition to your own products or services), second by helping you understand what your competitors think customers want and third by helping you spot changes in your competitor’s behavior that may stimulate you to think hard about what is going on in your market place. One useful way to think about it is that competitors don’t compete with your products, they compete for your customers.
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Charles Stromeyer Jr. – Entrepreneur, Independent Consultant, and Volunteer
I agree with David. I’ve had first mover advantage on two separate occasions which means by definition that there were no initial competitors.
Not having insight from competitors forces the entrepreneur to merely make an educated guess about how potential customers will evaluate the products or services offered, and makes it harder to optimize customer service.
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David Geraghty – Partner at Omega Business Partners
Bob, You are correct that businesses need to focus attention on patterns and choices consumers make that otherwise would be spent on their products or services.
I spent 18 years providing employee benefits programs to small & mid-sized businesses. My competition went beyond direct competition with other brokerage firms. In fact, I watched CPA’s, banks, attorney’s and HR consultants begin to capture this market as well as my client base.
We continue to evolve responding to the needs of customers providing new services related to payroll, investments, HR administration and other government regulated changes.
Competing in the B2B environment I observe macro trends, i.e. regulations, industry movement, business behaviors. A micro scale is direct communication with customers, suppliers / vendors and relevant movers.
I enjoyed your article, “What is Business Intelligence?”
Thanks for sharing.
Linked-In Group: Global MIT Enterprise Forum
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Prasad Devineni – Director & Partner SMOTEC PLUS
CI fixation is absolutely true with the major industry players. I used to be the director of CI practice for 10 years at Kline and for the last 5 years moved to marketing and sales of chemicals. Being a convert from CI to sales, these observations are right on the money. Customers do value alternate products and their value proposition is different. For long term growth of the company, you can not depend on CI as it is like driving the car forward by looking in the rear-view mirror. However, CI has its advantages to analyze and correct the direction in the short term if you have money to spend.
Linked-In Group: Brazil Sugar and Ethanol
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Guillermo (Bill) Cabiró – Strategic Analytics: Integration of Market Intelligence & Business Performance Metrics provides a profitable advantage.
Bob, Good article. It all boils down to creating value for the customer faster or greater than your competitors.
Regards, Bill
Guillermo (Bill) Cabiró – Strategic Analytics: Integration of Market Intelligence & Business Performance Metrics provides a profitable advantage.
Bob – Good article. Bill Gates said recently that he is worried about the unknown little guy working in a garage, inventing the next disruptive tehcnology that may obsolete MSFT. Regards, Bill
Linked-In group: Specialty Chemicals Network
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Donnie Edgemon -
The Market Intelligence Blog – Submitted on 2010/03/22 at 10:10pm
Bob – I’m glad you wrote this. I’ve found that CI is most popular in cash-flush companies in mature industries, and normally with #2 companies instead of #1s. Companies spend money on CI when they can’t figure out how to deliver value that will attract new customers, and can’t figure out how to deliver new value that existing customers will pay more for. In other words, companies that focus on CI are playing defense, and are bound for decline. The following question should be a prerequisite for any CI spending: “Is there any way that I could apply this money toward innovation or finding new markets?”