What is Market Intelligence And How To Use It

Market intelligence

Market intelligence can help you determine who and how to target your marketing efforts. How do you get such vital information about your target market in the first place? This comprehensive guide will explain what market intelligence is and how you can collect it.

What is Market Intelligence?

Market intelligence refers to the actual data and information related to your overall market. Market intelligence goes beyond just knowing who your target audience is. Collecting market intelligence helps you make data-driven decisions about the company, not just marketing.

Market intelligence can be divided into different types. These data points could include:

Also read: What is Data-Driven Marketing: A Guide for Marketing

Market Intelligence Vs. Business Intelligence

It is important to not confuse market intelligence with business intelligence. Both knowledge areas are essential for success in a company, and each has its own uses. By definition, business intelligence refers to data that is specific to a company or its performance.

Market Intelligence

  • External focused
  • Industry Trends
  • Competitor insights
  • product differentiation
  • Consumer behavior

Business Intelligence

  • Internal Focused
  • Company performance
  • Efficiency
  • Sales
  • Process
  • Profitability

They gather data in different ways. Market intelligence is based on external factors so these data sources could include:

  • Customer surveys.
  • Data on consumer and economic pricing.
  • Analysis of Demographic and Geographic Data.
  • Consumer behavior reports.
  • Testing by users
  • Third-party tools

On the other hand, Business intelligence is strictly inward-looking. These data sources can be used to gather internal intelligence.

These key differences should help you determine the type of intelligence data that your company might need at any time.

How To Use Market Intelligence

Market intelligence can be used to your advantage, regardless of whether you are a new company or an established business.

Before you can understand how market intelligence works, it is important to identify your goals. What are your goals in gathering market intelligence?

Market intelligence can be used to answer business questions.

  • Are our company’s goals in line with the market?
  • Which market(s) is a good fit for our brand? Do we need to expand or focus on a specific niche?
  • Is it necessary for our business to shift resources in order to achieve our goals?
  • How do customers go about purchasing our product?
  • How can customers learn about our products (or those of our competitors)?
  • How would our ideal customer look? What are their characteristics and behaviors?
  • What are our competitors doing that we are not?

Market intelligence is basically analyzing the market environment that a brand is part of.

Market intelligence analysis can also be broken down into various categories.

Competitor Trends

Conducting competitor analysis is another part of market intelligence. Reviewing competitors can help you identify your brand.

  • How do their strengths and weaknesses compare to your brand?
  • The key product differences or similarities are important.

These factors can help you position your product/service in the market.

Consumer Behavior Trends

Market intelligence offers the greatest opportunity to gain insight into customer behavior regarding your product or services. This data can be used to identify their challenges and pain points, and to determine why they chose to purchase from you. This intelligence can be used to optimize the retention and engagement of existing customers as well as attract new customers.

Your ideal customer is also a result of market intelligence about consumer behavior. This could include:

  • Browsing and buying behavior
  • Interests.
  • They choose where they spend their time.
  • They spend their money.
  • The household income or the status of the household.

These key factors will help you to shape your marketing and awareness campaigns.

External Market Factors

Market intelligence can also be used to analyze the market where your brand is present or where you might want to expand.

This data can be used to determine how your product or services performs in the current market. This data can be used to determine the pros and cons of expanding into new markets, as well as what risks and opportunities are associated with it.

These market factors may overlap with consumer behavior and trends. It will help you see the larger picture for your company by combining all of these market factors into a market analysis.

Also read: Top 10 Business Intelligence Tools

How To Collect Market Intelligence

Market intelligence should not be gathered from just one source. Multiple credible and trusted sources are needed to help you tell the story about your target market.

Market intelligence is not something that can be done in a single way. First, set a goal for what you want to achieve with your market research.

Once you have established a goal, it is time to identify the metrics that are most important for your brand. Here are some examples of key metrics:

  • Total addressable market share (TAM). How many customers could this product or service be sold to? What is the market’s expected growth rate?
  • Pricing indicators. How does our price point compare with the market?
  • Competitor data. How many other competitors are there in this market? How much market share does each competitor have compared to ours?

It’s now time to begin collecting market intelligence. Here are some ways to start collecting data and conducting research.

  • You are your customers. Sending surveys to customers could be a simple way to do this. Ask them questions about their buying journey, their pain points, and their love for your product.
  • Analytics databases. To analyze customer trends, you can use your first-party data as well as data from third-party marketing or analytics platforms with competitor data. Combining these two data sources can reveal many key differences.
  • Online research. This could include reviewing and purchasing reports or business journals that are relevant to your market. This research can be costly, but it will often pay off in the long term by providing insights that will help you shape your brand strategy.
  • Market experts. These experts usually work one-on-one with companies to provide advice. They are experts in the market and work together with other industry professionals to help guide product trends.

Although this isn’t an exhaustive list, it should give you a good start to your market intelligence journey. The analysis part comes next after the data have been collected. These tips will help you use market intelligence to your advantage.

Conclusion

Market intelligence can be a powerful tool to determine the market position of your product/service in relation to it. Market intelligence is an ongoing task for any brand, as markets change constantly. Do not think of gathering data about your market as a one-and-done project.

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