Lack of data is often a reason for roadblocks while thinking of new growth strategies for business. Why is it that with so much data already available, companies are still unable to make the most out of it? The reason is that markets are now evolving rapidly, and the slightest shift in customer trends or perceptions can make a lot of difference.
The only way to act on these trends is through market intelligence. With this tool, you get relevant data on a product or market and use it to interpret business information and make key business strategies. To know more about it, see the following section.
How do you define market intelligence?
Market intelligence (MI) is the data a company gathers about the industry to create a business strategy. It includes collecting information on consumer habits, assessing popular trends, and evaluating investment opportunities. This kind of information allows a firm to understand the changes in the industry and make plans accordingly. Some terms related to MI are:
KPI: KPI indicates a quantifiable value showing whether the company is performing according to its expected standards and achieving its objectives.
Market: Market encompasses consumers and businesses in a particular region, including cities, states, and countries that are a part of a single economic market.
Industry: Industry includes all the businesses that develop certain products and services to cater to varying human needs.
What are the different types of market intelligence (MI)?
Market intelligence encompasses a sea of data and information on competitors, customers, prices, issues, and many more. There are various types of MI based on the data sources. Some of the most important types are:
1. Competitor Intelligence
Competitor intelligence is the collection of information on a rival’s business strategies, their approach to decision-making, and brand promotion. It involves observing the company’s performance by looking at the federal databases and stories from media coverage.
For example, if a company wants to seek information on its competitors, it can go through various website reviews and learn about its practices from a customer’s perspective. Such intelligence can help gain important insights into industry trends and devise effective marketing and brand development strategies.
2. Commodities Intelligence
Commodities intelligence is gathering data on similar or competitor products in a market. A marketing team uses public industry sources to monitor product costs and how customers use various features to determine if its products fit their specific requirements.
For example, a telecommunications company must monitor the prices of other mobile phones within the same segment. A price drop in a competitor’s product means that it is launching a new model. The understanding of such information enables a firm to strategically introduce its products at a competitive price and at the right time.
3. Market understanding
Market understanding is the knowledge of different aspects of an industry, like market trends, size, and demography. The information helps businesses develop strategies to increase revenue and explore new market growth areas.
A marketing team can develop relevant products and promote them by learning what content customers like. For example, by evaluating website analytics for a streaming channel, a production company can learn what content is popular amongst various demographics and release content that caters to different audience segments.
With adequate information on the market, you get a broad view of customer behaviors and needs, technology solutions, potential markets, prices, suppliers, and various other aspects. This information reveals various market trends, hidden patterns, and numerous latent correlations.
When a company uses this correctly, it increases its productivity and revenue generation. Hence, data can be vital in creating the desired impact and sustaining the marketplace in the long run.
Danish Ali is a Blogger of Digital Marketer at M.Steel industry. Where he has spent 4+ years growing client accounts. With 5+ years of experience in public relations and marketing, He loves talking about content creation, SEO, and blogging.