Marketing Intelligence: Definition & Uses

Instructor: Savannah Samoszuk

Savannah has over eight years of hotel management experience and has a master's degree in leadership.

Companies need to know their market very well to make informed decisions regarding their brands and products. This lesson explains marketing intelligence and its uses.

Defining Marketing Intelligence

Ben is the owner of a software company and he needs to know what is going on in his market. He needs to know the competitors in his market, information about his customers, the products in the market, and so on. In short, Ben needs marketing intelligence.

Marketing intelligence is the collection and evaluation of information about a company's market. Companies need to know about changes in the market, competitor's new products, and customer preferences. For example, if Ben doesn't know about a new product coming out that his customers want, his business may fall behind in the market. Marketing intelligence helps companies understand everyday information in the market, prepares the company for decision making, and defining market strategy.

Everyday Information

Every company needs to know everyday information pertaining to their market. A company's market includes all the consumers who might purchase its products or services. Simple everyday information can be useful for starting and running a business.

What simple everyday information would a company want first? Most companies start with looking at their current customers. They keep track of the number of customers they have, the purchases made, and customer feedback. One way companies gain everyday information for marketing intelligence is by soliciting customer feedback. They ask for information about their customers' purchases and experiences. For example, Ben can send his customers a survey regarding his company's products to gain information to help him in improving them. Customer feedback helps companies to provide better service and products and make changes where necessary.

After a company gathers everyday information on its customers, the next type of data it is likely to want is on its competitors. Who wouldn't want to know who they were up against in the market? Companies need to know how many competitors are in their market for the same products and services. For example, Ben wants to know how many other companies provide the same products as he does. He also wants to look at what his competitors do that might give them an advantage, or what he does that gives him an advantage.

Decision Making

With everyday information on customers and competitors, a company can make better business decisions. For example, if Ben learned that his customers were increasingly active in the mobile market or that his competitors were introducing new products for mobile devices, he would know that his company needs to offer more mobile products to keep up. He would then decide to devote more resources to mobile market products.

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