One of the integral parts of operating a business is to have a close eye on your competition and the current position of your business in the market. Traditionally, the term coined for this activity is market intelligence. In recent times, the practice of gathering market intelligence has expanded. It now includes insightful analytics that can help you to improve your overall business model as well as the projections. This concept can help even small businesses to get a better understanding of the market and make the overall business more profitable.
Market Intelligence Defined
The concept of Market Intelligence makes use of multiple sources of information to develop a broad picture of your business and its existing market. It gets details of all your company’s customers, competition, opportunities, and problems to help create new products and services.
With the help of data from sales logs, customer data, surveys, and reviewing social media metrics, market intelligence can be collected.
How is Market Intelligence different from Business Intelligence?
Market Intelligence is sometimes confused by business Intelligence, but it is not the same thing. Business Intelligence is collecting, analyzing, and processing data that is specific to a particular business. On the other hand, market intelligence is about managing data from the overall market trends. Or in other words, Business Intelligence or BI is all about the information about the internal company performance. This can be the number of all the products that were sold or the total revenue generated by the business over the past year.
On the other hand, the concept of marketing intelligence is all about external information such as customer demographics, what the customers are buying, or geographic information. This also helps the business to have a look at where your business stacks up as compared with the rest of the marketplace. All this information contribute to BI.
How can Businesses use Market Intelligence?
If the market intelligence activities are done in the right manner, it can help the businesses to have a look at the current and potential customers. This helps your company to determine its internal goals. Some of the questions that the market intelligence can address include at which area my company must devote more resources, which market should my business try to target next, what are the buying patterns of my customer, what are the products that can be cross marketed to the existing customers. The businesses can also know all are the products that can be cross marketed to the existing customers. The business owners also know all the demographic segments in which the company can launch new and existing products.
The power of Market Intelligence helps businesses to analyze the overall business environment in which they are operating. This will also help your business to spot all the potential risks and identify new opportunities for overall growth. Most companies can do this with the help of the below criteria.
- Product Intelligence: This involves analyzing the quality of the products or services that are offered. If you are selling a physical product, it covers its manufacturing processes and whether the product that you are building is as effective as possible. All the information that you gather helps you to improve the overall product value.Collecting all this information is straightforward as it requires you to look at the other products that are available in the market. You get to know the strengths and weaknesses of all these products along with dynamics such as their packaging and the overall production process.
- Competitor Intelligence: This analysis involves gathering and processing information about business competitors. This also involves analyzing the strengths and weaknesses of the competitors in the market. This will help you gain valuable information about your own company and why most of the customers do not choose you always for your products and services.A competitor analysis report can include everything such as product features and pricing and all the information about the key demographics and target audience.
- Understanding of the Market: This concept is about your sense of the different markets where you are selling your product or devices. Market research will help to get a feeling of how well you are performing in all those markets and if there are other markets in which you can expand.Getting a better understanding of the market helps to gain a solid grasp of the market. It also helps to get knowledge about competitive analysis as well as product intelligence. This also helps to know the top performers in the space. It tells what is selling in the market and what are products or services will be in high demand in the near future.
- Understanding the Customer: This is learning more about your current customers and why they spend money on your products and services. This area will also help you to understand any challenges that you face with those customers so that you can improve their level of satisfaction and their rate of retention. All this information will help you in your future marketing campaigns.Marketing departments in a business are most likely to put together customer personas that offer details such as interests, demographics, and the problems they face, along with the solutions that all the businesses provide them. All the customer insights can often help an entire business operation, such as product development or quality assurance.
Why Not Overlook Market Intelligence?
Market Intelligence helps you to get a better insight into your industry. It also helps you to identify new opportunities for expansion. But all this is only useful if all the information that you have gathered is accurate. Staying on top of the market can become time-consuming for small business owners. This can be made easy with the help of many online tools that are readily available in the market. These tools will help you to store, analyze, and gather all your market intelligence data and information.
Some of the most popular options that are available in the market include Sisense and Pentaho. There are also some cloud services such as Birst and Oracle, which helps the users work online and share their Business Intelligence Insights.
Source – Business news daily