Market intelligence is all about what sells in a market climate characterized by intense competition and constant change. These should include data on competing products, competitors internal processes, market size, market shares, customer preferences, potential expansion areas, and marketing strategies. Market intelligence KPIs provide an accurate analysis of data gathered on these aspects and are valuable in defining what kind 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 in the market should not surprise anyone. Some of the products are even practically carbon copies of one another except for a few insignificant differences. Products out in the market are the result of market intelligence. Obviously, the market intelligence data analysis suggest that the market is large enough to allow the entry of other products with similar specifications.
Research is the primary instrument of marketers to determine what will sell. KPIs for market research will logically focus on competing products and brands out in the market, market size, and market shares. Analysis of market size and shares that define competitors’ performance – when related to product brands, specifications, territorial coverage, pricing, and strategies employed – provide marketing managers ideas on what kinds of products to sell and market segment to target. Market research tools that marketers often utilize are surveys, product recall, product tests, and product positioning.
While market research is crucial to market intelligence, there is another type of research that is as important – competitor’s analysis. Usually, a company’s success depends a lot on the competition. This type of research will deal largely on the companies producing the same products and their customers. The idea behind competitor’s analysis is that the best way to obtain a foothold in the market is knowing the competitor’s position and its customers.
Competitor’s analysis is helpful in various ways. First, one gets to know what makes a competitor’s products click. It could be because of quality, pricing, visibility, an effective distribution system, and many more. Second, all these information helps a competing company to align its products and strategies with existing market conditions. The strategies can entail producing a product that can efficiently compete with other brands, capture an untapped segment, or create a new market.
Along with research on competing companies, research on their customers will be helpful as well. It is worth knowing what a customer likes or dislikes about its competitors’ products and services. Aside from providing invaluable information on customer’s preferences, which helps a lot in ensuring that products get the necessary market acceptance, this likewise prevents companies from committing tactical mistakes.
Technology is still another area where market intelligence research is of great assistance 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 give them the most convenience. That is why manufacturers and services providers are always on the lookout for new technologies that will make their product more user-friendly.