Market Intelligence: Definition

It generates and obtains helpful business information about the competitive environment, customers and competitors. Firms need to utilize market intelligence tools to gain an insightful perspective of the industry. These tools can determine the direction in which a firm needs to move concerning their competition while also providing knowledge concerning customers, which may make them more profitable based on their customer base.

Market intelligence understands how the marketplace perceives your company, its products, and its offerings. It is also a way to know where the industry is going and how customers want to engage with companies in specific industries. Deriving data from the market in which the business operates and the industry as a whole is a way for a business to gain insight and create beneficial actions for the profitability of the business. Closely associated with doing market research, market intelligence is based on the following :

1. Competitor Intelligence; Using ethical methods, business intelligence systems gather historical data about the strategies and tactics used by your rivals. The data is used to judge their level of competitiveness and the best ways to respond. Using such data for your competitive advantage is a valuable tool that can help a business craft and implement industry-leading strategies.

2. Product Intelligence; Product Intelligence helps the company know what customers want and how the product can be improved to meet customer demands. The information is used to determine which products are popular and in what markets, as well as how to improve existing products for future demand. It also involves understanding competing products and assessing how your products compare.

3. Market understanding; Having an overall understanding of your market is a crucial part of the business intelligence process. Understanding how customers view you, what the market competitors are doing, how the industry will grow, and where it will grow are just some essential factors that can help a company succeed. Looking at a business at a macro-level allows them to see the entire industry rather than just their direct competitors. Knowing trends in the industry and keeping up with the information is an excellent way for a business to stay competitive.

4. Customer intelligence; Customer intelligence helps a company know its customers better, which allows them to make more accurate decisions regarding its marketing material and where to direct specific products. Knowing what customers want also enables a company to create goods that will entice them to buy by learning how they want their product. Understanding your customers’ needs is crucial for you to stay competitive in your industry.

Market Intelligence: Types and Methodologies with Examples

Applying quantitative and qualitative methods, market intelligence can be used in various industries, including manufacturing, retail, hospitality, and health. Each industry is different and requires a slightly different approach and methodology when generating data for their needs. The use of statistics and other methods are used in the research process to evaluate the information gathered.

Some qualitative and quantitative methodologies include:

1. Macro-level trends: During this part of the research process, companies individually look at the entire industry and their specific market. This is done by looking at macroeconomic changes in the market and the overall health of the industry.

2. Industry research: Companies look at their competitors and their customers along with other factors that can help create a better understanding of how the industry operates and how customers want to engage with companies in specific industries. This method can be used to analyze the industry to understand how it will grow over the coming years.

3. Competitor analysis: Competitor analysis is a way for a business to gather information about its competitors and their strengths and weaknesses in the market. This analysis can be done by looking at competitors through history and doing an overall review of how they operate in the industry and their plans for the future. It also involves gathering information on competitors by reviewing their current products, marketing campaigns, planned initiatives, and consumer preferences.

4. Surveys; Using survey tools, a business can gain insight into what people in the industry like and dislike. Understanding the market as a whole allows them to know what is popular among their customers and how to approach their market differently than their competitors. Surveys can be done using various means such as mail, telephone, and online surveys.

5. Focus groups are a way for a business to meet and talk about their products directly with customers to test their opinion and gather information about what they like, dislike, and think of your product. An insight into how people view your product can allow you to improve the product’s development process based on the feedback you receive from the focus groups, which will help you create a more successful outcome.

For more technology tips, make sure to check out the rest of our blog today!