Market intelligence is the combination of various data sources to provide a comprehensive picture of a firm’s current market. It takes into account a company’s customers, problems, competition, and potential for new products and services.
Market intelligence is “Information about client demand, competitors’ products, other market factors, that an organization uses to help it select what to sell, how to price, etc. in a particular market.”
Market intelligence is different from business intelligence which focuses mainly on internal issues. It gathers data all over the world and gives a holistic view of the market as a whole, not just your company. By incorporating market intelligence into existing business intelligence processes, an organization will have a comprehensive view of their performance on specific markets.
Market Intelligence is Made up of Three Main Components
Look at the Overall Business Situation
This category contains a variety of factors that can have an effect on strategic business decisions at the highest level. This is a high level risk assessment.
Market Analysis
Market research is an active survey that involves a thorough analysis of the market to determine the potential consumer and the level of demand for a product or service.
It will also reveal the opinions, wants, and buying habits of consumers. This will help business to segment their market and find out who their target customers are.
Sales Analysis
A sales analysis report is a comprehensive document that details the sales performance of a product, client information and revenue generated. The report uses past and current data to highlight the strengths and weakness of sales and goods teams, and to identify emerging trends.
What is the strategy for selling? Will a sales team be needed to compete with the competition? Can this be handled remotely or outsourced? These are some questions you can ask yourself to help analyze your product sales.
Analysis of Competitors
This step requires a thorough evaluation of your competitors’ products and services. It also involves an assessment of their brand and their market business proposition.
Product Intelligence
During this phase, it is important to check the alternatives on the market and their attributes. The organization should also evaluate the product’s USP and the market demand.
Pricing Strategy
A pricing strategy is influenced by a number of factors, including the sector, the ability to pay, the market trends, competition, volume, and overhead costs. The pricing strategy is targeted at both competitors and a specific group of customers.
SWOT Analysis
Use all the information above to perform a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats). SWOT Analysis helps you to identify what works well in your business, and also to fill any gaps. It reduces risks and increases chances of success.
Market Intelligence for Small Business
Smaller businesses can collect market data by sending questionnaires or surveys to clients. “Small businesses can create systems to manage their customer lists, and some kind of feedback program for customers to collect information more cost-effectively.” Website analytics can give you a clearer picture of what your customers want, demand.
