Definition of Market Intelligence
Market intelligence is described as information or data collected by a company from the market in which it works or intends to operate to identify market segmentation, market penetration, market opportunity, and existing market metrics. Market intelligence is essential for understanding the status of the market and collecting competitive intelligence, which aids in being profitable.
For example, a corporation needs to know who the best target demographic is for a new mobile phone that will be released shortly. A profiling survey can assist a firm in narrowing down its target demographic based on the sort of mobile device it is releasing. For example, if the phone’s colours are bright and its features are set up to sell it as a gaming mobile device, a survey will narrow down participants who love gaming, are younger, and have a specified income range. This information enables the firm to concentrate its efforts on the proper people, therefore saving money and time.
Market intelligence, on the other hand, differs from business intelligence. Unlike business intelligence, which focuses on largely internal issues like billing rates, personnel, and processes, market intelligence gathers data from all around the world, giving you a comprehensive perspective of the whole market, not just your company. Incorporating market information into business intelligence procedures, on the other hand, will give a corporation a holistic perspective of its continuing performance under specific market situations.
Market intelligence is closely linked to market research, and it may be broken down into three parts:
Competitor Intelligence – Competitor intelligence is the process of gathering information about a competitor using ethical means such as government databases and public documents.
Product Intelligence – Gathering information about competitors’ products or similar items on the market is known as product intelligence. A telecoms corporation, for example, must keep track of the prices of competing for mobile phones in the same category. A decrease in the price of a competitor’s goods might indicate that the firm is launching a new model. Understanding this data may help a corporation launch its models strategically at the appropriate moment and the correct price.
Market knowledge – Market knowledge entails knowing your company’s market share, market trends, market size, and which market is your target market. Understanding market demand and client desires may greatly assist a firm in increasing revenues and market share.
Benefits of Market Intelligence
Market intelligence not only helps firms differentiate their brands from their competitors, but it also helps them stay in the game and improve at it by delivering vital information. The following are some of the advantages of market intelligence.
A comprehensive picture of the market – A thorough understanding of the industry may propel a firm to success in no time. Market intelligence is the process of acquiring data from the market in real-time and further analysing consumers, trends, habits, and other factors in order for a firm to remain competitive and satisfy market needs.
Brand loyalty – No matter how long a customer has been with a firm, the competition is continuously watching and attacking them. Understanding when a consumer is dissatisfied and why might help you avoid losing business. Market intelligence may assist you in analysing and gaining insights into the areas where clients want improvement, allowing you to retain them and understand their lifetime worth.
Improve the sales process – Companies with a wide range of goods and a big number of consumers sometimes confront the problem of deciding which product to market to which groups. Market intelligence aids in market segmentation, allowing a corporation to decide which product would be successful with which demographic.
Gives you a competitive edge – The phrase “first-mover advantage” or “launching a product at the ideal time” is commonly used in business circles. These are only achievable with the help of market information. Market intelligence provides a thorough view of the market, allowing a firm to penetrate or gain market share by delivering a product or a new feature at the correct moment, providing them with a competitive edge.
Market Intelligence: Importance
Market intelligence is critical to every company’s success since it serves as the foundation for all marketing efforts. Market intelligence requires the acquisition of data, analysis, and application of the information. Market intelligence enables you to become more customer-centric, gain a better understanding of market demands and consumer perspectives, gather real-time relevant data, increase upselling chances, decrease risks, increase market share, and gain a competitive edge. These advantages are critical to the success of any organisation, and market information is one of the most important components in implementing good business strategies.
To further appreciate why market intelligence is so important to every firm, consider the following points.
A better understanding of your market position — You may gain a thorough understanding of the industry by collecting market information through surveys. It will provide you with information on what your competitors are doing, market demand, and who your target audience will be, among other things. Analyzing this data will allow a corporation to assess its market position and formulate plans appropriately.
To assess the quality of your goods – Marketing intelligence surveys will provide you with practical data into market product trends, desire for certain features, and product specifications that are currently in demand. Such data aids in the evaluation of your goods and the making of sound business decisions.
To be aware of your intended audience – Gathering market intelligence will enable a firm to comprehend the audience’s wants, and businesses may use surveys to narrow down their target population for certain products/services.
Competitor analysis – Market intelligence is a broad topic. In today’s business world, conducting surveys to acquire knowledge about your competition is critical. Businesses may use this information to adjust their goods depending on market demand, analyse rivals’ successes and failures, and develop strategies based on the competitor’s position.
