Market intelligence is about what you sell in a market climate characterized by intense competition and constant change. These should include data on competitor products, competitor internal processes, market size, market shares, customer preferences, potential expansion areas, and marketing strategies. Market intelligence KPIs provide accurate analysis of the data collected on these aspects and are valuable in defining what type of products or services a particular company should offer, and in developing strategic product development and marketing programs.
That there are always new but similar products on the market should not surprise anyone. Some of the products are even practically carbon copies of each other, except for a few minor differences. The products that come onto the market are the result of market intelligence. Obviously, analysis of market intelligence data suggests that the market is large enough to allow other products with similar specifications to enter.
Research is the primary tool marketers use to determine what will sell. KPIs for market research will logically focus on the competitor’s products and brands in the market, market size, and market shares. Analysis of the market size and shares that define the performance of competitors, when related to product brands, specifications, territorial coverage, prices, and the strategies employed, provides marketing managers with insights into what types of of products to sell and what market segment they should target. Market research tools that marketers commonly use are surveys, product recalls, product tests, and product positioning.
While market research is crucial to market intelligence, there is another type of research that is just as important: competitive analysis. In general, the success of a company depends a lot on the competition. This type of research will largely deal with companies that produce the same products and their customers. The idea behind competitor analysis is that the best way to gain a foothold in the market is to know the position of the competitor and their customers.
Competitive analysis is useful in several ways. First, one gets to know what makes a competitor’s products click. It could be due to quality, price, visibility, an effective distribution system, and many more. Second, all of this information helps a competing company align its products and strategies with existing market conditions. Strategies may involve producing a product that can compete efficiently with other brands, capturing an untapped segment, or creating a new market.
Along with research on competing companies, research on your customers will also come in handy. It pays to know what a customer likes or dislikes about your competitors’ products and services. As well as providing invaluable insight into customer preferences, which goes a long way in ensuring that products gain the necessary market acceptance, it also prevents companies from making tactical mistakes.
Technology is another area where market intelligence research is of great help not only to marketers, but also to the overall effort of companies to stay ahead of the competition. Customers are naturally more inclined to buy products that provide them with the most comfort. That’s why manufacturers and service providers are always looking for new technologies that make their product easier to use.
Market intelligence KPIs related to market intelligence components are not efficient when they cannot provide a company with a complete picture of market conditions. Market research, competitor, and customer analysis KPIs should always help accurately measure the effectiveness of BSCs formulated for market intelligence programs and strategies.
