CMI stands for Competitive Market Intelligence. It refers to the process of gathering and analyzing information about competitors, market trends, and customer preferences to gain a competitive advantage in a specific industry or market.

Function of CMI:

1. Market Analysis:
- CMI helps companies understand the current market dynamics, including market size, growth trends, and potential opportunities.
- It provides insights into customer preferences, needs, and buying behavior, enabling companies to develop effective marketing strategies and tailor their products or services accordingly.

2. Competitor Analysis:
- CMI allows businesses to monitor and analyze their competitors' strategies, strengths, weaknesses, and market positioning.
- It helps identify competitors' product offerings, pricing strategies, marketing campaigns, and customer satisfaction levels.
- By understanding their competitors, companies can make informed decisions to differentiate themselves and gain a competitive edge.

3. Product Development and Innovation:
- CMI provides valuable insights into customer demands, preferences, and expectations.
- It helps businesses identify market gaps and opportunities for new product development or innovation.
- By analyzing competitors' products and customer feedback, companies can enhance their existing products or develop new ones that better meet customer needs.

4. Pricing and Promotion Strategies:
- CMI allows companies to understand the pricing strategies of their competitors and the prevailing market prices.
- It helps businesses determine the optimal pricing levels for their products or services to attract customers and maximize profitability.
- CMI also assists in developing effective promotion and advertising strategies by analyzing competitors' campaigns and identifying successful marketing tactics.

5. Risk Assessment and Decision Making:
- CMI enables companies to assess market risks, such as new entrants, changing regulations, or economic fluctuations.
- It helps businesses make data-driven decisions by providing insights into market trends, customer behavior, and competitors' activities.
- CMI aids in identifying potential threats and opportunities, allowing companies to proactively adapt their strategies and stay ahead in the market.

In summary, CMI plays a crucial role in helping businesses understand the market landscape, competitors, customer preferences, and industry trends. By leveraging this information, companies can make informed decisions, develop effective strategies, and gain a competitive advantage in their respective markets.