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Market intelligence and market research are two increasingly popular terms, often mistakenly referred to as one. While market research refers explicitly to primary research material gathered through some sample and survey methodology, market intelligence is a much broader terminology that makes use of more secondary resources. Market Intelligence vs Market Research The basic differences between the two terminologies are listed below: Market research is a rather traditional approach wherein the researchers conduct a detailed survey of the market in order to determine the level of acceptance of any particular goods or product. On the other hand, market intelligence requires a more detailed approach which includes market research. This calls for robust analytical skills that include business analytical skills as well. Market intelligence involves integration of a wide range of information that goes beyond the traditional approach. The key aspects which require knowledge include competitors, financial dynamics of the entire industry and also of the entire value chain. Market intelligence also involves a lot of mathematical calculation for which people from mathematics, finance or product management background are generally preferred. The second basic difference is that market research is focused mainly on consumers, while market intelligence is integrated with all the important aspects of the company. Market intelligence, which takes into consideration a detailed market survey before going into a final analysis, provides a complete picture of the market and requires integration of business forecasting processes, product development and business systems. Market research usually involves limited interaction between clients or decision makers. On the other hand, market intelligence involves assessment of questions based on a variety of market dynamics. Communication is an important part of the entire process, which includes both primary and secondary research. The ground stones of market intelligence The best way of describing market intelligence would be to analyse it phase by phase. It is based on a foundation consisting of four basic areas, viz. competitor information, product information, market information and customer information. Competitor information refers to the study of strategies that are employed by competitors, their organisational structure, product investment portfolio and other future plans. Product information means understanding the products in the marketplace, their pricing and the various tactical marketing activities. Market information includes an overall view of the market at the macro level, including the present market size, the market segments, market share trends and the projected growth of the market and the various segments. Lastly, customer information involves complete understanding of customer preferences, factors that drive customer behaviour, brand loyalty, customer views and satisfaction rates. It is important to combine the knowledge on all these aspects to create a holistic view of the market to complete market intelligence. Developing market intelligence team Acquiring proper market intelligence capability is often a difficult thing to do. Here are some of the basic criteria for developing a successful market intelligence team: Having an overall vision of the functions that are involved in market intelligence. Mapping a certain set of competencies which is required to fulfill the company’s vision on market intelligence. The heads of the company can also perform an audit in order to understand the basic needs of the firm. Therefore, developing capacities for market intelligence and market research is therefore imperative to businesses today. Increasing the focus on building the core market intelligence capabilities with the help of outsourcing the elements that are not essential.
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Market Intelligence, Market Research, Market Insights, Primary Research,
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