Marketing Intelligence System
Marketing intelligence includes the procedures and data sources used to obtain
information from the business environment for decision making. This information can be
external or internal. This data usually pertains to various political, economical, technological
and socio-cultural elements. It also can include information on customer demographics and
competitors. Hedin et al (2014) argued that these data must be integrated into the company’s
market intelligence systems through proper intelligence for successful corporate decision–
making.
Again, it is important for the company to focus and prioritize on the collected
information that is absolutely important. This therefore means that the company’s success
depends on the quality of its marketing intelligence. This is generally true because businesses
fail not because the companies lack good ideas but due to the fact that they make poor
decisions based on improper information. A marketing intelligence system would therefore
fulfil customer’s needs since it identifies their profiles, motives, habits, needs and wants. It is
against this background that this discussion intends to address what a Marketing Intelligence
System is, how it is utilized, why it is important, and what the internal and external sources of
marketing intelligence may be.
Marketing Intelligence System Defined
A marketing intelligence system is a set of procedures and sources that managers use to
obtain everyday information about developments in the marketing environment (Kotler &
Keller, 2016). Whereas Prin (2016), defined a marketing intelligence system as a system that
focuses on the systematic collection and processing of information from all the relevant
sources to ascertain the changing trends in the marketing environment. In simple words, the
marketer gathers data from all the available sources, and processes these into meaningful
information that can be used to make critical business decisions.
Besides, the marketing intelligence system help the companies meet their customer’s
needs by gathering customer level information that assists in business decision making.
Managers use the marketing intelligence system tool to collect information about the daily
happenings in the market, analyze them and develop results for the company. The marketing
intelligence is based on a mix of data from company, its competitors, consumers, customers
and the macroeconomic impacts.
Examples of Marketing Intelligence
Below are some of the examples of marketing intelligence.
• Market Reports
Companies often want to determine how they are faring in certain markets (Suttle, 2020).
Hence, they may order secondary research reports from other companies like such as
Forrester Research. One important component of market data is market share, which tells a
company what percentage of the market it controls. Business owners also can use the data to
determine whether there’s room for growth in certain markets.
• Competitive Information
Another type of marketing intelligence is competitive information (Suttle, 2020).
Business owners usually use industry reports, articles, newsletters and personal observation
to study their competitors. They may also collect competitive brochures or study their
websites. Small companies use competitive information to learn more about competitors’
investments, organizational changes and strategies. They may also purchase competitive
products to study various features and technology. Marketers may also study competitive
information to determine the types of customers they serve.
• Internal Databases
In addition, Marketing managers also use market intelligence they obtain from customers
(Suttle, 2020). This information goes far behind the typical name, address and emails of
customers. For example, a marketing manager may have detailed information about key
customers, including their average age, income, education and what they typically spend per
visit. This allows companies to create profiles of typical customers, characteristics they use to
target other noncustomer consumers.
• Using Competitive Intelligence
Other companies often use competitive intelligence to conduct analyses of strengths,
weaknesses, opportunities and threats (SWOT). A company usually uses a SWOT analysis to
compare its strengths and weaknesses against key competitors. It then uses those advantages
to identify various opportunities in the marketplace. For example, a plumbing company may
have stronger distribution channels in place. It may then use those distribution channels,
including showrooms and retail stores, to get more product exposure. Similarly, a small
company strong in customer service may include that fact on websites, brochures and other
printed materials.
How a Marketing Intelligence System is utilized
According to Manual (2015) market intelligence focuses on specific classes of
customers, including demographic and geographic information and what they buy, all of
which can help inform an analysis of business intelligence. Market intelligence also takes into
account what is happening with the competition, which business intelligence ignores
altogether.
In addition, market intelligence also draws on numerous external and internal sources of
information to paint an accurate portrait of existing or prospective market, customers,
challenges and the growth potential for new products and services via your business strategy.
It answers questions and helps marketing managers gather information about where they
should invest more resource and which markets or channels could work for their company.
This information can be used by businesses in a number of ways including:
• Growing their presence in an existing market.
• Entering a new market.
• Minimizing the risk of an investment decision.
• Establishing a stronger (or new) brand.
• Developing a new product.
Importance of Market Intelligence
