Marketing intelligence is the process of gathering and utilizing information and data relevant to the marketing decisions of a company. It is collected to make an accurate decision. Marketing intelligence focuses upon the actionable insights associated with audience analysis, SWOT analysis, competitor analysis, market research, and web analytics
Companies use the data derived from market intelligence for determining the market opportunity to formulate marketing campaigns to optimize the presence, brand awareness, and sales of the number of businesses. It is a vital aspect for a better understanding of the market situation.
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What is Marketing Intelligence?
Definition: Marketing intelligence is defined as the process of collecting and implementing data-oriented information to formulate effective marketing strategies for businesses to optimize lead generations and conversions from the target markets.
The said data is the information about the targeted customer, market trends and so on that is relevant to the company’s decision-making. Marketing intelligence can answer the following questions-
- Where the company should devote its resources?
- Which target market a business or company should try to infiltrate next?
- Are there patterns about the buying preferences of the best customers?
- What types of products or services can be cross-marketed to existing customers?
- What demographic segments would best suit the new and existing products?
Market Intelligence vs Market Research
Both marketing intelligence and marketing research are important for the company. They help in providing an understanding of the market to develop marketing strategies.
Marketing intelligence is focused on collecting overall data from the market, hence its goal is solely company-focused.
While, on the other hand, the goal of marketing research is to gain insight into customer preferences. It is more inclined towards learning key things about buyers’ research processes and factors that influence their buying decisions.
Who needs Marketing or Business Intelligence?
Any decision taken by a company is always to be supported by data and statistics.
Analyzing the data gives the management insight into the market situation along with trends and consumer behavior. Hence considering all these things while devising a strategy helps the company to enjoy a competitive edge.
So, business leaders, managers, or marketers who want more accuracy in the business and marketing related decisions need business intelligence.
Components of Marketing Intelligence
1. Competitors intelligence
Competitors’ intelligence gathers all relevant data of one’s competitors to use it in devising a marketing strategy. Also, in the process, it is necessary to do a SWOT analysis of one’s own company to understand its current position. After evaluating one’s own company, it becomes easier to take advantage of its strength and market opportunities.
Now it becomes easier to dive deep into the market to identify suitable competitors in the market. The goal of gathering competitors’ intelligence is to determine the reasons customers choosing their product and service. Since the company keeps on evolving, it is necessary to collect data on its competitors regularly.
2. Product intelligence
After analyzing one’s competition in the market, it is essential to look into one’s own product or service. The purpose is to optimize the product quality to meet the customer’s expectations. For the production of the physical product, it is essential to look into the production process.
Utilize the data gathered on the customer behavior and preference to make the necessary changes in the product. Ensure that the company’s product is giving an excellent experience to one’s customer.
3. Market understanding
For the successful operation of a company, it is important to understand the market. After the production of the product, the company should analyze whether it will be profitable in the target market.
Marketing intelligence helps a company to gather the required data that is necessary for their future planning. This results in the production of products that would be well-received in the market.
4. Customer understanding
Understanding the customer is the main aspect of establishing and expanding the business. It is important to know about the customer’s purchase pattern, preference, and reasons for substituting one’s product with the competitor’s.
To be the market leader, the company should make the customer satisfied with their products or service. All this can be achieved when one can thoroughly analyze the market.
Why collect data for Market Intelligence
Marketing intelligence helps in improving the success rate of any business or company. Through the effective means of collecting data, a company can understand its customer and demand-led market better. Given below are some of the importance of market intelligence-
1. Understanding the market
Collecting marketing intelligence through various methods allows the company to gain a better understanding of the market. It helps give insight into the market demand, trend, consumers behavior, and competitors’ position. These are valuable data that allows the company to penetrate the market.
2. Understanding the market trend
Marketing intelligence allows a company to know the trends in the market. And accordingly, a company can produce the products that are in demand. The information obtained about the market trend can be utilized to make their products according to their preference.
3. A better understanding of the customer
A business exists for the customer, and to survive in the market, it is crucial to understand the need of the targeted customer. Market intelligence allows a business to gain insight into the customers’ patterns, behavior, and demand. All this information is necessary for designing a product that meets the customer’s expectations.
4. Overview of the competitor’s performance
To stay ahead in the competition, the business needs to keep a close eye on the competitor’s performance. Gathering intelligence on the competitors is vital to achieving an upper hand in the competition. The data collected can also be utilized to modify one’s product and formulate strategies to gain a fair share in the market.
5. Evaluation of the product
Conducting marketing intelligence surveys helps the company better understand their product from the customer’s perspective. And accordingly, one can make necessary changes as per the demand in the market.
How to collect data for Marketing Intelligence?
There are various methods through which a marketer can collect the relevant and required data for the company. Given below are some of the methods;
1. Survey
The most common and traditional way of collecting information about the market is through conducting a survey. In the survey, the pattern involves a questionnaire that helps in gathering data from the target market and analyzing it. With the help of analyzing the said data, developing a marketing strategy and decision-making becomes easier. The survey can be conducted through various means;
- Online survey
- In-person survey
- Telephone survey
- Mail survey, etc.
2. Using an analytics tool
Marketing intelligence is a piece of information that is meaningful and important for the company. Using various analytical tools helps derive the relevant information or data essential to understanding the company’s position and progress. The analytical tools allow the company to collect data on demographic trends, consumer activities, etc.
3. Polls
Unlike questionnaires and surveys, polls are focused on determining the market response to a single question. Polls generally have a higher response rate. The reason being it could be answered quickly and easily.
4. Focus group
A Focus group refers to the set of people that are carefully selected to represent the target market. These people are asked questions based on which the company gains insight into the market’s perception, demand, and value. The data gained through the focus group helps the company in decision-making.
5. Field trials
Field trials from a business perspective refer to the company by giving out the prototype or the same to the selected store. It is to be noted that such products are yet to be supplied in the market. This initiative is done to understand the market’s response to the product. And accordingly, make necessary changes to the product before launching it on full-scale.
Benefits of Marketing Intelligence
1. Overview of the market
Marketing intelligence helps the company in decision making and devising strategies with the help of the data of the market. The company gets an overview of the market data in real-time with the use of various analytical tools.
2. Retaining the customers
A company needs to monitor its operation and performance in the market. The trends are changing rapidly, and it is up to the company to keep up with these trends and changes to retain their customer. Marketing intelligence helps to give you data that allows the company provides an insight into their customer.
Besides the customer’s taste and preference, it is essential to know their dissatisfaction with the products. With all the necessary data, a company can improve the quality of the product to meet the customer’s expectations, thereby retaining the customer.
3. Improve sales performance
Marketing intelligence provides relevant data on the target market of a company. And the help of those data, the management can formulate and implement various marketing strategies. This helps in improving the overall sales performance of the company.
4. Gaining competitive advantage
There are various competitions in the market, and to be a front-runner, it is essential to keep a close eye on the competitors. Market intelligence helps the company gain insight into the competitors’ performance, marketing trends, and market situation. The company can use these data to penetrate and capture a fair share in the market.
Tips for enhancing Marketing Intelligence
Data derived from marketing intelligence are essential for decision-making. It ensures the formulation of systematic result-oriented strategies.
The more one gathers the right amount of intelligence more will the company be able to harness its full potential. Given below are few tips to improve marketing intelligence-
1. Consult with the sales team
The sales team can be an important source of gathering data for marketing intelligence. The sales team directly interacts with the other business partners and customers. Being directly involved in the industry, the team has a better idea and outlook of the market trends, status of competition in the industry, and so on.
2. Communicating with the customers
A business exists to serve its customer. Establishing a direct communication link between the company and the customers helps in data collection and customer insight. Through this means of communication, the company can better understand the customer’s interests, challenges, and needs.
Also, feedback is an efficient way to know about the target market. Reaching out to the customer can help a company to perceive the customer’s behavior pattern. Thereby using this, a company can improve a customer’s experience and create brand authority.
3. Focusing on quality data
By collecting data on the market, a company has to sort out the sources to receive quality and relevant data. This helps improve data collection efficiency by eliminating the unnecessary time taken to collect irrelevant data.
4. Utilizing a marketing analytics software
A company can take advantage of marketing analytics tools to gather insight into the audience. One can determine the total amount of response received through TV and social media. And accordingly, move ahead with media planning to capture the desired market and improve the conversion rate.
Different marketing intelligence tools that you can use are-
- For Competitor Intelligence- HubSpot’s Marketing Hub
- For Product Intelligence- SurveyMonkey, Wootric, Metadata
- For Customer Understanding- Google Surveys, CallTrackingMetrics, Seventh Sense, GreyMetrics
Conclusion
Marketing intelligence helps a company to make faster and better decisions. It helps in reducing market risk and brings out innovative marketing strategies.
Through better insight and overview, it enables a company to have a competitive advantage over their competitors.
Marketing intelligence is essential for the successful operation of a business. It helps the management to devise critical marketing and product strategies to stay ahead in the competition. It gives the direction an overview of the existing market, trends, competition, and growth potential of one’s own company.
