Market Intelligence is a strategic information and monitoring mechanism that relates marketing variables using various methodologies and tools that optimize managerial decision-making.
I have investigated about this very novel subject but at the same time not so clear for people interested in applying it since it focuses only on the technological aspect for the transfer and treatment of commercial information of companies. The objective of this article is to present the factors involved in Market Intelligence for its application in organizations of any industrial sector, not only from a theoretical perspective but also from a practical perspective based on some proposed examples based on my experience as a business consultant in cases related.
The factors involved in Market Intelligence are:
1. Strategic Marketing: Market intelligence begins its process in the strategic planning of your company's marketing, that is, the proposed strategic guidelines according to the situational diagnosis of your Organization, from the “Customer Perspective” or commercial function, must be concatenated to the Vision to be achieved. We are aware that the business environment is constantly changing and without a doubt it is necessary to observe it constantly and methodically.
Strategic Planning as a Management methodology must contemplate the objectives in commercial matters for the Organization. I suggest you define your Vision and Mission based on the four strategic perspectives of the “Balanced Scorecard”, because although we need to establish marketing objectives, this function is not isolated but integrated with the other business functions, for example: “Improving the quality in customer service ”, as long as there is no Quality Culture on the part of the Personnel and Senior Management of the company, the necessary technology to optimize operations, the appropriate procedures and the financial resources available for the case.If you realize what I am trying to tell you is that to establish Marketing goals you must consider your possibility of success from the Organizational Synergy forged in the company.
In a conference on these issues, held at the Lambayeque Chamber of Commerce (Peru), a micro-entrepreneur asked me if it was possible that this type of Management methodologies could be applied to MSEs regardless of the area to which they belong. The answer was obviously affirmative, adding that it is not only applicable but necessary to promote the sustainability and growth of your company over time. If you do not have a Strategic Marketing Plan, formulate it now, in any case look for specialists who can advise you on the matter. The Strategic Planning process that involves the Marketing variable of the company is presented below:
2. Scoring applied to Marketing: Defining the indicators and designing the formats for the respective quantitative and qualitative analysis are part of the second phase in the Market Intelligence process. The components of an indicator are as follows:
a.- Nomination (in relation to the objective to be monitored)
"Market share"
b.- Variables involved (in relation to the data to be collected or processed)
* Total sales of the sector (estimated - monthly - s /.)
* Total sales of the company (billing - monthly - s /.)
c.- Mathematical formulation (combination of variables)
Market share = TOTAL SALES OF THE COMPANY (BILLING - MONTHLY - S /.)
TOTAL SALES OF THE SECTOR (ESTIMATED - MONTHLY - S /.)
d.- Evaluation criteria (in relation to minimum, maximum and intermediate goals and references)
<15% failed goal> = 15% goal in process
> 28% exceeded goal
After designing the most appropriate indicators to verify the achievement of the objectives, formats or schemes are configured in which the results that are obtained can be viewed and analyzed in an orderly manner, as shown below:
How is it beneficial to configure the indicators involved in business models?
- It integrates various variables related to a business or functional reality. Generates multiple probable scenarios, according to the analyzed model. Optimize your results and improve your decision making by the simulations caused.
3. Virtual Platforms: Computer applications are selected that can be adjusted to the reality of your company, taking into account for example:
- Commercial Activity Organizational Dimension Geographic Expansion Proposed Vision Human Talent Capacity Economic Capacity Technological Support
In the market there are various computer alternatives to implement a management information system that allows optimizing decisions related to the marketing of your company, I suggest that it be a tailored application since they are technological tools that must be adjusted to the situation of your Organization and not the other way around.
The Excel and SPSS spreadsheets are a very good alternative to analyze and cross trade data, establish forecasts, segment markets, link financial variables, model business realities, measure perceptions or attributes, etc.
4. Market Research: Collecting the correct data in the expected time minimizing sampling and non-sampling errors are fundamental aspects for the effectiveness of the decisions that can be carried out. The methods to be used and the sources selected are of vital importance to validate the systematic and objective process that market research represents. Additionally, it can be understood that the people assigned to this phase must be properly trained to technically formulate all the variables involved.
Market intelligence process
As shown in the previous figure, everything starts with Strategic Marketing, generating a cycle of phases that constantly monitor the target market to which the company is directed, but remember that: the key to success consists of the ability of managers to design in a This mechanism is ideal according to the reality of your Organization and your analytical capacity to make decisions based on your knowledge and experience.
They will have realized that no computer system, no matter how sophisticated it may be, can predict the impact of a decision, even more so if the data processed is wrong or out of time to be effective.
I will describe in a generic way some business examples related to Market Intelligence based on my professional experience:
* DECENTRALIZED CREDIT CARD AGENCY: This Organization had a Strategic Plan and required, among other activities, to monitor its affiliates with a higher turnover, for which it was suggested to apply market segmentation policies from CRM (Customer Relationship Management) filtering Programmatically, in an Excel spreadsheet, your database is arranged neatly in cells in such a way that your client portfolio was inventoried, the idea is that each month the data regarding the billing variable is updated and more portfolio maintenance can be carried out cash to key affiliates.
* TABLE WATER DISTRIBUTOR: Despite the stubborn competition, this Distributor with some years of experience in its sector was growing in a disorderly manner, the managers of the same perceived that they were not taking advantage of all the potential they had. It was suggested to develop a Marketing Plan that will focus on various commercial variables of which one of the most important for them was commercial logistics for an effective distribution of their product. The configuration of a geographical mapping of the areas with the highest demand was started and the units for distribution were prorated based on this data.
* MUNICIPAL TAXATION BODY: Its Strategic Plan was adapted and a BSC Dashboard was set up which included, among others, an indicator to measure the level of taxpayer satisfaction with the service provided by the Institution but which was linked with the results of a survey in Excel formats to be updated every semester. The objective was to verify, based on the taxpayers' qualification, that the areas involved in the service provided contributed to the positive perception of the Institution.
* HARDWARE IN EXPANSION: A market investigation was carried out in the geographical area where it was intended to locate a branch of this company. One of the strategic objectives was the configuration of a monthly cash flow in Excel spreadsheets that include the total market, the unsatisfied segment and the seasons of consumption during the year. The idea was to identify the opportune moment to invest, verify the achievement of the expected sales levels in the target market, establish attractive profit margins in relation to their costs and undertake corrective activities if necessary.
* GOVERNMENTAL ORGANISM: A BSC Dashboard was designed for this Public Institution that wanted to give its Management greater sophistication and for which we focused on the client's Perspective on variables that could impact society. Some proposed indicators were: Sanitation, Poverty Level, Distribution of Wealth, Work, Health, Education, among others. What was complicated about some of these variables was getting the corresponding data to monitor their evolution. Comparative tables were configured by periods between the established goal and the trend of the variable over time.
So I invite you to develop Market Intelligence in your company and to continue sharing business and professional experiences, uniting Latin America with the power of knowledge.
