Posted in Marketing and Strategy Terms, Total Reads: 593
Definition: Market Intelligence
Market intelligence is the information that is used by the business leaders to formulate a strategy for a new market opportunity, market penetration or market development. It is essentially the information which is relevant to a company’s market analyzed and gathered to aid the business leaders in accurate and confident decision making. It is essential when entering a new market or when launching a new product.
Market intelligence is often complemented by the Business intelligence to provide decision makers with a holistic and complete picture of the ongoing corporate performance under some market conditions. While Market intelligence deals with the gathering of information about the company’s external environment, Business intelligence is primarily information about the company’s internal events such as sales, purchases, shipments, etc. To get the market intelligence information, marketing intelligence systems are deployed in certain companies using an on-premises or software-as-a-service model. In order to get up-to-date and accurate information of the market, marketing managers must engage with various stakeholders like customer, suppliers and distributors. In addition, it is needed that the manager is aware of the market trends and the competitive forces.
Market Intelligence can be broadly divided into two types:
1. Competitive Understanding
a. Competitor Intelligence in the form of Investments, organization changes, and strategy
b. Product Intelligence in the form of pricing, product varieties, promotions
2. Market Understanding
a. Market information in the form of Market share, opportunity forecasts, market volume analysis
b. Customer understanding in the form of Customer Loyalty, customer wants and needs and demographics