Market intelligence is concerned with what sells in a market climate characterized by intense competition and constant change. These should include data on competitive products, internal processes of competitors, market size, market shares, customer preferences, areas of potential expansion, 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 insignificant differences. The products that go on 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 main tool for marketers to determine what will sell. KPIs for market research will logically focus on competing 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, territory coverage, pricing, and the strategies employed, provides marketing managers with insights into which types of of products to sell and which market segment to address. Market research tools that marketers typically use are surveys, product recalls, product testing, and product positioning.
While market research is crucial to market intelligence, there is another type of research that is just as important: competitor 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.
Competitor 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 their customers will also be helpful. It pays to know what a customer likes or dislikes about your competitors’ products and services. In addition to providing invaluable insights 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 helpful not only to marketers, but also to companies’ overall effort to stay ahead of the competition. Customers are naturally more inclined to buy products that give them 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 ineffective when they cannot provide a company with a complete picture of market conditions. Market research, competitor, and customer analysis KPIs should always contribute to accurately measuring the effectiveness of formulated BSCs for market intelligence programs and strategies.