Operating any company involves keeping an eye on your competitors and the status of your industry. That data has always been referred to as "market intelligence." The process of gathering market data has evolved in recent years to incorporate analytics that may enhance your business model and forecasts. As such, you must understand your industry and use market intelligence to operate a more lucrative business.
Market Intelligence: What Is It?
The act of obtaining and examining data on a company's rivals, industry trends, and client preferences is known as market intelligence. Market intelligence aims to gain more insight into consumers and competitors, which may subsequently be used in strategic decision-making. Market intelligence may be gathered using various techniques, including focus groups, phone surveys, market intelligence software, and Internet research.
Spreadsheets and statistical software are only two examples of tools that can be used to examine data once it has been gathered. The study's findings may then be used to enhance a business's marketing plan and provide it a competitive edge.
What Advantages Does Market Intelligence Offer?
There are several advantages to marketing intelligence for all types of businesses. It benefits you:
- Educate product message and strategy. Based on data-driven insights about customers' requirements and preferences, businesses may make choices. They can better use these understandings to enhance their product line, general marketing plan, and advertising campaigns.
- Obtain a competitive advantage. Competitive intelligence provides insight into rivals' tactics and performance. This makes it possible for companies to stand out in a crowded market and find openings in the industry.
- Determine new trends. Marketing intelligence makes it feasible to identify trends early on. It allows companies to respond to market changes and seize new possibilities before they become popular.
- Reduce the risk. Market forecasting and consumer behavior prediction are two tasks that businesses may do using market intelligence. This may assist them in anticipating market declines or changes in consumer demand so they may modify their plans in advance.
Let's go over an example.
Let's say a chocolate manufacturer is getting ready to introduce a new range of chocolate.
They need to figure out how to communicate about chocolates (message) and what sort of chocolates to sell (product strategy). Then, they start looking at consumer lifestyle, food, money, and health goal data.
They understand that their younger target group is growing more conscious of health advantages and organic components (new trends).
Based on these observations, they modify their tastes, packaging, and marketing messaging. They promote their chocolates as the preferred option for health-conscious customers.
By doing this, they gain a competitive advantage. Additionally, they lessen the chance that the message and product will not resonate with customers.
What Distinguishes Business Intelligence from Market Intelligence?
Due to their conceptual similarities, market intelligence and business intelligence are sometimes mistaken. Both kinds of intelligence are necessary when making big business choices. They differ, however, in that they concentrate on distinct kinds of data.
The external environment of the company is the main focus of market intelligence. To do this, you must collect and examine data on the broader market (from a thousand-foot perspective). This might contain details about your clients, rival businesses, market trends, and goods. You must adopt an outside-in methodology to collect data from sources outside your organization and use it to guide business choices.
Business intelligence focuses on a company's internal environment. To do this, you must collect and evaluate internal company data on operations, finances, sales, and manufacturing.
Due to their ability to assist you in making well-informed judgments on company strategy, both forms of intelligence are crucial. Businesses function best when several forms of intelligence are combined, even though their scope and emphasis are different.
Conclusion
Market intelligence is a vital corporate function because it can provide insights into consumer requirements and preferences, competition activity, and industry trends. By assisting companies in making well-informed choices about product creation, price, marketing, and distribution, market intelligence may provide them with a competitive edge. Additionally, market information may assist companies in tracking their success in the industry and locating new prospects.
