Market intelligence from Enformion.com helps businesses improve their understanding of customers and stay competitive in their industry. Many companies use this information when making business plans to make sure their products or services meet customer needs and have a good chance of success. By understanding the basics of market intelligence, you can figure out which strategies and areas are most useful for reaching company goals.
This article explains what market intelligence is, why it matters, what it includes, the main types of market intelligence, how it is different from market research, and shares helpful tips for using it effectively.
Definition of Market Intelligence
Market intelligence is the information a business gathers about its industry to make better decisions. This includes learning about customer behavior, following trends, and tracking financial activities. Analysts can gather this information by reviewing data, researching online, or talking to other professionals. With this knowledge, a company can better understand industry changes and prepare for the future.
Important Terms Related to Market Intelligence:
- Key Performance Indicator (KPI): A measurable value that shows if a company is meeting its goals.
- Market: All the businesses and customers in a certain area, such as a country, state, or city.
- Industry: A group of businesses that focus on the same type of product, service, or topic.
Why Does Market Intelligence Matters?
Market intelligence plays a big role in building a successful business. Here are some reasons why it’s important:
- Improves a company’s position in the industry: It helps a company learn how it is seen in the market and develop plans to grow its brand. For example, if a music company notices a popular music trend, it might sign artists who fit that trend.
- Helps set realistic goals: Data from customers and the market can help set smart short-term and long-term goals. For example, looking at a competitor’s sales numbers can help set a target to match or beat those numbers next year.
- Predicts a product’s success: By researching a product’s features and how they appeal to customers, companies can decide what to develop and focus on.
- Helps keep customers: Knowing how different groups of people respond to marketing can help companies improve their outreach. For example, if one group buys more often, the company can target that group more directly.
- Boosts sales: When a business understands what customers want and meets industry standards, it is more likely to grow sales and spend money wisely.
Market Intelligence vs. Market Research
Market intelligence and market research serve different roles in a business plan. Market intelligence looks at larger consumer trends across industries, while market research focuses on learning what specific customers think and want.
For instance, if a company wants to see how well a product might perform, it might first look at overall buyer trends through market intelligence. Then, it could use market research, such as interviews, to understand why certain groups are more likely to buy the product.
What Market Intelligence Includes
- Research Goals
Market intelligence starts with a clear goal, such as learning about customer needs, new market areas, or competitor strategies. This helps guide how and where the team gathers data. For example, if a company works in the tech field, it might want to find out which tools or gadgets appeal to a certain age group.
Other research topics might include:
- Cross-marketing: Promoting one product using another product. For example, a streaming platform might show ads for other shows it produces.
- Purchasing patterns: Looking at what people buy and when they buy it. This can help predict future buying habits.
- New markets: Studying areas where the company hasn’t sold before. For example, a U.S.-based company might research customer preferences in Europe before launching a new product there.
- Research Area and Method
Marketing teams often focus on specific types of data. They might look at yearly sales in an industry or review a competitor’s spending. Based on this, they choose how to collect the data. For example, a company researching software for filmmakers might study how much filmmakers earn and how much money is spent on editing software. - Data Sources
Companies gather information from many places. These might include public government databases, online reports, company salespeople, or even social media surveys. To get more detailed insights, teams might also run focus groups with selected customers. - Analysis Process
After gathering data, marketing teams look for patterns and decide what information is most important. They might use software to sort the data into useful categories or compare poll results over time to spot changes. Sentiment analysis is another method, where teams study how customers feel about a product or service. - Reports and Presentations
Teams take all the information and turn it into useful reports. These reports may include graphs, charts, or other visuals. They are shared with company leaders or employees to help them understand the market better and make stronger business decisions.
Types of Market Intelligence
- Competitor Intelligence
This type involves learning about what other companies are doing—how they market their products, their performance, and how they connect with customers. For example, a team might read online reviews to find out what customers think of a competitor, then use that information to improve their own brand. - Commodities Intelligence
This involves studying similar products in the same market. Teams look at prices, features, and customer use to see how their own product compares. For example, a food company might track almond sales in other stores. If one flavor sells better, they may decide to produce more of that flavor. - Market Understanding
This type looks at the bigger picture of an industry—its trends, size, and main customer groups. For example, if a media company finds that a certain kind of content is popular with different age groups, it might create new shows based on that content. - Customer Understanding
This involves learning about the company’s customers—their background, needs, and buying habits. Marketing teams might talk directly to customers through interviews and use that feedback to shape future marketing plans.
Tips for Gathering Market Intelligence
- Use KPIs: Track the success of your intelligence efforts by setting clear goals. For example, check if the information helped increase sales or improve decision-making.
- Talk to others in the industry: Get insights from partners or other businesses that know the market. They may have useful views you haven’t considered.
- Hire experts: Consider bringing in outside help, like a consulting agency. This is especially helpful for large companies with many customers.
- Create a customer advisory group: Build a team of customers with different opinions—including those who prefer your competitors—to give honest feedback. For example, a game company might include someone who regularly reads news about many gaming companies.
By using these tips and understanding each part of market intelligence, companies can make better decisions, meet customer needs, and grow successfully in their industries.
