Understanding competition is central to making effective marketing plans and strategies. An agile firm must constantly compare 1) the quality, desirability, and cost-effectiveness of its products and services, 2) the success of its promotional schemes, and 3) the loyalty of its clients, with those of its key competitors in order to ensure that it is not left at a disadvantage. In doing so it can also identify the areas where it has or can potentially gain a competitive advantage over its competitors.  No firm can achieve and maintain a competitive edge without having reliable information about how it is positioned relative to its competitors in the minds of the customers.