During my time as an MBA student I’ll at least be able to know what Market Intelligence is. To be more precise, I understand that businesses keeps track of internal processes and data with business intelligence systems. But do they analyze what’s happening in their industry or the markets where they do business?
Market intelligence is data analysis that provides a focus on specific elements of a given market, such as a geographic location or a particular demographic of consumer. Which Market Intelligence a business can understand where to allocate more resources, and which markets to infiltrate next. By collecting and analyzing data about the markets in which they are situated, companies gain valuable insight into how to grow their business.
Now, here are some basic rules to successful Market Intelligence:
Always have good information which always relies on real people;
Communicate with your manufacturers, distributors, clients and others involved in the creation and distribution of your products;
There is no set plan for how to gather market intelligence;
Equip your business with powerful market intelligence tools that keep track of all information;
Cloud-based providers also offer business intelligence systems and data storage solutions for business;
Marketing researchers study consumer trends and reactions to different products.
Hard data, dialogue and marketing research make up the majority of a company’s market intelligence. Once this information is processed, businesses use it to make important decisions, including determining market opportunity and creating market development metrics.
Market intelligence vs. business intelligence
Unlike business intelligence, which deals with the self-analysis of a business, market intelligence deals with the analysis of the external factors affecting a business.
Don’t forget to take into account what is happening with the competition and use your data analysis to create competitive intelligence.
Use Marketing Intelligence to provide a context to you sales numbers and other transactions occurring within your business, only then you’ll achieve optimal decision-making.
According to a recent article by Andrew McDougall, Datamonitor’s analyst Ramaa Chipalkatti has announced that skin whitening products have been marketed incorrectly in the West, hence their popularity in Asia. Skin whitening products have long been seen as popular in Asia, these products give consumers confidence in their appearance because fair skin is usually associated with perceptions of youth and dark skin is seen as lower class.
To back up Chipalkatti’s statements “a Datamonitor survey found that 50% of Asian consumers say skin whitening is essential of highly sought after in skin care products; compared to 24% and 22% in the US and Western Europe respectively.”
The point is that many studies have shown that people from different cultures see and perceive things differently and that is probably due to how their culture shaped the way they view the world. To lack of better words “If a marketer or brand can find the right language and benefits to promote to a particular audience, skin whitening products have great potential.” – Andrew McDougall.
Skin whitening products are usually not well received in Western cultures because of the language used and the benefits the marketing campaigns focus on. “Marketing and positioning is essential” explains Chipalkatti. “Brands need to be careful how they market their products.”
Intelligent market data from Datamonitor, an international data analysis company proves that there is market opportunity evident in 3 trends: Heath and wellness; easy and affordable, individualism and expressionism. The anti-ageing market is increasing dramatically and depigmentation is seen as an ageing sign. The way to position these products is to target the creams at different audiences and different price points depending on their demand since skin whitening creams already address the top skin care concerns worrying consumers worldwide.
Andrew McDougall concludes his article by quoting analyst Chipalkatti: “By being marketed in specific or different ways around the world, skin whitening products have great potential”.
It would be easier to say that marketers are not supposed to use social media as marketing research for a variety of different reasons. The truth is that social media is now a reliable metric used by businesses worldwide. Over time, Social media is able to identify the trends and social dynamics across products, topics and venues.
Prof. David Schweidel, Co-Director of Emory’s Marketing Analytics Center says “The data available on social media have ushered in a new wave of what’s possible for marketers. Social media intelligence can help firms track brand health and market structure and can even provide a leading indicator of shifts in consumer sentiment.”
Marketers defend that the real value of social media intelligence happens when social media data are linked with other firm metrics which include three sources: social media intelligence, traditional marketing research, and customer touch points.
“Marketing is about the same thing it’s always been about: right customer, right message, right time,” says Prof. Schweidel. Social media platforms can sharpen marketers’ abilities to achieve that goal. “We can more readily observe the products and features that consumers want. We can identify the pivotal players who may help disseminate a message. We can see what types of messages are most appealing. And we can track what kind of impact these social activities have on our strategic objectives.”
The important take away is that the faster this information is collected by a business the better the understanding of the consumer. Social Media captures general shifts in brand sentiments before survey-based metrics, usually these are sentiments propelled by recent news events or important announcements.
On the other hand, customer satisfaction surveys will show you better than any social media data what brands need to know to diagnose or remedy a consumer concern. The downside? “Social media users comment on what they want to comment on” —not what the brands need to know to tackle a costumer need.
For more expert insight please refer to the relevant infograph.
In a recent article, Rick Suttle demystifies the difference between Marketing Research and Marketing Intelligence. Both are usually used by businesses to study their markets, competitors, political implications and consumer demographic variables however the key difference according to Suttle relies in the final purpose of the data itself, meaning marketing research tends to be highly company specific.
Companies generally use phone, Internet or in-person surveys to gain marketing research data but marketers have to use both types of information (Marketing Research and Marketing Intelligence) to develop their core marketing strategies.
Marketing Intelligence encompasses a variety of different purposes ranging from determining company’s market share, or the percentage of units and dollars the company wields in the marketplace; the total dollar amount that consumers spent in her industry, etc.
Nevertheless, a company would not be able to determine consumer preference differences in the markets it serves without conducting Marketing Research surveys. “People in one market may prefer different product features, styles, flavors or sizes than those in other markets” – says Rick Suttle.
Here’s an example: one type of marketing intelligence is internal data; small-business owners often use internal information such as customer databases for business decisions. But others need to use marketing research: marketers would conduct phone or in-person, corporate management would use marketing research to learn why customers purchase certain products and management would need to survey customers to determine whether what other products customers may like.
There are many methods used by businesses to gather and collect market research data. Nevertheless, marketing data is seen as a worldwide powerful tool used to compare the company’s strengths and weaknesses with key competitors and from there develop elaborate pricing strategies.
According to a recent FoxNews article by reporter Constance Gustke, a Datamonitor survey released last year says 90% of people in the U.S. chose their banks because they had conveniently located branches.
It is true, mobile banks aren’t made for all consumers – offerings maybe be limited to simple banking transactions and there is a lack of product diversity. Furthermore Daoud Fakhri, senior retail banking analyst at Datamonitor, the international data analysis company adds: “mobile banking apps at traditional banks are also fairly comprehensive and usually include mobile deposits and money transfers.”
However, banking apps targeted at the millennials who are in their 20s and usually have tight finances allow customers to make transactions with just a few taps on your Smartphone.
Gustke explains banks, including GoBank, Simple and Moven offer “free checking accounts and specially designed tools for analyzing nuggets of spending data in real time that especially appeal to the money-minded younger set. Banking is also easy to master and is mainly done with your Smartphone or debit card.” – instant feedback is one of the most desired features by the mobile banking consumer. Ron Shevlin, a senior analyst at Aite Group says “With mobile banks, you don’t even have to log in to begin banking.”
This convincing article elaborates further on the increase of number of branches given the recent findings. Bid data proves that the trend is the digital banking movement: “There’s a huge need for good mobile banking, says Mary Monahan, a research director at Javelin Strategy and Research. Doing your banking online on a small Smartphone screen can drive you crazy. But mobile banking, which was designed for Smartphone, gives you more flexibility, such as doing your banking while waiting for a train.
Another advantage is that you don’t have to worry about security with mobile banks, Monahan says. The apps are safer to use than online banking. Criminals are still catching up to mobile banking and duping people online is easier — for now. Banking eventually will be mobile, Monahan says. It’s only a matter of time.”