Manufacturing companies across the globe are facing challenges as the prices of raw materials are on the rise. Plants are finding it difficult to keep pace with the rising demands of the global market. In fact, the shipping and distribution costs have also increased in recent times. It is not easy for the manufacturers to move their production abroad for benefiting from lesser labor costs.
In such a scenario, it is essential for the manufacturers to optimize their prices to create significant profit margins and sync their business objectives with data-driven pricing strategies. With the help of competitive pricing intelligence software, manufacturers can set pricing strategies for their businesses. Once the goals have been set, the manufacturers can choose from various pricing strategies for meeting their business goals.
For any manufacturing business, competitive pricing intelligence plays a crucial role. It is the process of collecting, analyzing, and using information on the competitors for making informed pricing decisions. It helps in gaining a competitive advantage in the market. Competitive price intelligence is essential as it helps an enterprise in understanding the competitive surroundings along with the opportunities and threats. The data collected by the competitive intelligence platform helps in developing effective and efficient business practices.
Now that we know what competitive intelligence is, it is time to learn about its significance.
Importance of Competitive Pricing Intelligence in Product Marketing
As competitive intelligence helps in gathering competitor information, it helps in making excellent marketing strategies. The idea is to collect as much data as possible to find out about the strengths and weaknesses of the competitors. It enables the manufacturer to create an effective marketing strategy for achieving a competitive advantage.
Competitive pricing intelligence is an incredible process for the product marketing team. If the process is conducted well, it can help in improving the workflow and unveiling significant insights.
The right competitive intelligence tool/ software can help in:
- Identifying gaps in the market.
- Improve the product and services owing to extensive market research.
- Make data-driven and informed decisions.
- Stay ahead of the competitors.
- Support the sales team.
Competitive intelligence can help in getting answers to the following questions:
- What kind of strategy the competitors are using and how you can apply the insights for improving your strategic planning for making smart decisions?
- What kind of pattern of strategy is visible in their social media channels, product announcements, press releases, marketing messages, acquisitions and statements?
- Where are they expected to head next by continuing on the strategy?
- What actionable information you can pass on to the marketing team for improving your business strategy?
In a manufacturing business, the executive and communications team need market intelligence for delivering impeccable decision making.
How can Competitive Intelligence be used with a New Product?
The project managers should be aware of what the competitors are doing prior to the product launch. It helps in knowing the competitor’s marketing techniques and their product offerings. Online pricing intelligence can help in deriving insights on what your business should do differently for enhancing the value proposition of your product.
Competitive intelligence tools offer data that helps the sales, product development, and marketing teams for positioning the product in a better way. The marketing team can use the tools for gaining insights on the competitor’s marketing strategies which consists of digital advertising and social media content. On the other hand, the sales team can use competitive pricing intelligence for learning about market shifts, corporate acquisitions, and price adjustments made by the competitors.
Pricing intelligence tools can help a business in uncovering newer opportunities before the product launch. Manufacturers can identify the opportunities for expansion of business operations to new geographical locations and innovative new features for the product. They can also offer add-on services for beating the competitors. In fact, the sales team can identify acquisition targets when they wish to penetrate the market further after the product launch.