MARKETING INTELLIGENCE

LECTURE # 2
 Contents to be covered….
1. How to make market intelligence information useful

2. How to Setup Systems

3. Internal Data Needed in the System

4. The External Data that is Needed

5. Source of Information

6. Using Internet to gather the data

7. Using Survey Research-Qualitative & Quantitative Data

 Getting the Information…

Using market intelligence information is a management discipline, which needs to be

learnt, developed and integrated into a manager’s greater understanding of how to
manage effectively.
Marketing Intelligence
 Organizationally, Marketing Intelligence can be the name of the
department that performs both the market intelligence and
competitor analysis roles.
 Competitive Intelligence describes the broader discipline of researching,
analyzing and formulating data and information from the entire competitive
environment of any organization.
 Business Intelligence of any kind may also be their responsibility, in tandem
with (or solely performed by) the Finance department, for measuring
market share and setting growth targets, the Mergers & Acquisition group
for exploring acquisition opportunities, the Legal department to protect the
organization's assets or R&D for cross-company comparison of innovation
trends and the discovery of opportunities through innovative
differentiation.
Different Spheres of MI
 Market Intelligence can be divided into two spheres
 Market Intelligence based on external data
 Market Intelligence based on internal data

 Often Market Intelligence relies purely on external data such as

analysts reports, but there is often a great deal of untapped
information internally that would give you an insight into your market
through marketing intelligence.
Marketing Information System
 It coordinates the collection and extraction process and helps to develop a
databank of information that is used and acted on
 MIS is likely to be more market oriented using data to guide the decision
making process
 Efficient system management will ensure that the company collects and uses the data
it needs
 Need regular evaluation
 Need to be supplemented with both ad hoc survey research data and continuous one-
off problem solving data

 A marketing information system will help a company get the information it

really needs as it educates managers in what:
 Information is essential
 Is happening with current and potential customers
 Data is interesting, but not key to the operating management process
How to Step up Systems
 Getting the information you really need depends on the company
analyzing its customers and markets, as this is crucial for the success of
sales activities
 Companies are finding that customers are becoming more expensive to
reach and, therefore it is even more vital to identify the target audience
 The task for managers when determining how to set up a marketing
information system is to decide the following:
 What range of data analysis functions are likely to be needed?
What market segments exist?
What proportion of the market is our customers?
 What analysis is needed for market and product development?
 What is the volume of data is required? Will the system be able to cope with
the data
How to Step up Systems
 Who is going to use the data? And how they are going to use the data

 If these factors are evaluated carefully, a marketing information

system will be well designed, but it has to be customized to a
company to be effective
 Marketing information systems are now becoming essential in
competitive markets for efficient information management.
 It will help to give a manager a clearer understanding of a company’s
competitive positioning and its market share.
Internal Data Needed in the
System
 Internally, a marketing information system needs to collect, coordinate
and disseminate all aspects of internal operating data. This data is the
marketing intelligence of a company
 It is the control that managers need to run an effective sales and
marketing operations.
 Following internal data are essential:
1. Sales Data
2. Price Information
3. Market Support Information-it helps whether decisions are being made
effectively
4. Stock Level Data
5. Competitive information, reviewing competitors’ promotions and
communications
 Marketing Intelligence Functions
 Marketing Intelligence is the function that links the consumer, customer, and public
to the marketer through information
 Information

1. Evaluation and Monitoring of Marketing Strategies

2. Marketing opportunities & problems

3. Product Evaluation/acceptance

4. Efficacy of Advertisements

5. Brand Health Tracker

 The external Data Needed
 Data collected internally has likely to have some gaps in it due to biasness
 Opportunities are bound to be identified for additional information
 It is important for a company to “Map” the market in which it exists , to
understand the structure of the market and its marketing positioning within it.
 Following questions in order to develop market map:
1. Size of the market
2. Shape of the market-Distribution
3. Trends
4. Nature of Competition
5. Customers Behavior
6. Psychographics
7. Medium of Marketing
8. Customer Satisfaction
Sources of Information
1. Pakistan Government Statistical Publications
2. Business Economic Census
3. Geographical Maps
4. Google Earth
5. Business Libraries
6. Universities & Colleges
7. Using Internet to gather the Data
1. Use of Search Engines i.e. google, hotbot, lycos, webtop, yahoo, easy searcher

8. Telephone Directories
External MI Data on the Internet
 There is not much free MI data on the internet, many publishers now
have web pages, so the internet can be a good place for checking the
availability of published research:
1. www.dialog.com (it has subscription charges)
2. www.euromonitor.com (all types of MI reports)
3. www.datamonitor.com (all types of MI reports)
4. www.jup.com (online markets)
5. www.killen.com (Financial services and telecommunication)
6. www.mindbranch.com (IT, telecom, Health care and Industrial sector MI)
Intelligence Surveys
 Research Objectives

 Methodology-Type of Information Intelligence

1. Quantitative

2. Qualitative

3. Retail Audit

 With an instrument of collecting data-Questionnaire

 Timelines and Budgets

Using Qualitative
Information
 Quantitative Data gives concrete facts and figures in order to take the
decision and it also helps to monitor the effectiveness of marketing plan
and its’ tactics
 However, it will not give reasoning based information-reasons behind the
facts and more importantly, the attitudes of the current and potential
market to the company’s product or services.
 Qualitative Research is primarily exploratory research.  It is used to gain
an understanding of underlying reasons, opinions, and motivations. It
provides insights into the problem or helps to develop ideas or
hypotheses for potential quantitative research.
 Qualitative Research is also used to uncover trends in thought and
opinions, and dive deeper into the problem. Qualitative data collection
methods vary using unstructured
Using Qualitative
Information
 In qualitative studies following information will be extracted
irrespective of any brand/product/service
 Why do people act in certain ways?

 Why do they hold certain opinions?

 Why have they developed certain attitudes?

 How have their lifestyles influenced their behavior?

 Why do they have certain preferences?

Quantitative & Qualitative
 Main Points
Quantitative research involves analysis of numerical data.
Is focused on measuring the views and opinion of a small group of people with the
aim that they will be representative of the target population as a whole. The data
from a small sample is statistically analyzed
Qualitative research involves analysis of data such as words (e.g.,
from interviews), pictures (e.g., video), or objects (e.g., an artifact).
Why, When and Reasons behind using products and services.
To explore the ideas, human behavior, Traits and Characteristics of a respondent
Not asking direct questions, it is about observing and listening to people in an
environment that encourages enquiry and understanding; such as group discussion
and in-depth interviews
An open ended, flexible, interactive approach will yield far better understanding of
people’s attitudes and behavior
Quantitative & Qualitative
 Quantitative Research  is used to quantify the problem by way of generating
numerical data or data that can be transformed into useable statistics. It is
used to quantify attitudes, opinions, and other defined variables – and
generalize results from a larger sample population.
 Quantitative Research uses measurable data to formulate facts and uncover
patterns in research. Quantitative data collection methods are much more
structured than Qualitative data collection methods.
Quantitative & Qualitative
 Quantitative research: deals in numbers, logic and the objective,
 Qualitative research: deals in words, images and the subjective.
 Quantitative research: focuses on the left brain - objective,
comfortable with logic, numbers, and unchanging static data and
detailed, convergent reasoning rather than divergent reasoning.
 Qualitative research: deals with the right brain - the hemisphere
accountable for processing data as words, emotions, feelings,
emotions, color, and music.
Retail Audit
 Retail Audit service providers gather information on a brand’s sales
volume, sales trends, stock levels, effectiveness of in-store display and
promotion efforts and other associated aspects.
 Objectives of Retail Audit:
1. Market Trends by Product and by Brand
2. Market Share by Product and by Brand
3. Market sizes Sales volume by Product
4. Best Selling Models of each brand and sales volume of each price
5. Retail Prices of each model and sales volume at each price
6. Market Distribution of each Brand
7. Promotional activities of each brand
8. Import volume/grey channels of each product and each brand
9. Features (3G, no of sims, touch screen and etc etc)
Summary-Qualitative versus Quantitative
A Comparison of Qualitative and Quantitative Research

Qualitative Research Quantitative Research

Basic research To gain a broad qualitative To quantify the data and
objective understanding of the generalize the results
underlying reasons and form the sample to the
motivations; population of interest;
As a first step in Recommend a final
multistage research course of action
Type of sample Small numbers of non- Large number of
used representative cases representative cases
Data collection Unstructured Structured
Method
Nature of data Non-statistical Statistical
analysis
Evaluating Marketing
Tactics
 Qualitative evaluation can be used in quantitative in order gauge the
responses for further authentication
 Usually this done through the development of attitudes statements in
the qualitative research and then applying the statements to the
target customers by getting them to agree or disagree with them
when assessing the marketing methods.
1. Attitude to Products
1. Understanding consumers towards the products and its usage
2. Assessment of Prices
1. Qualitative Study helps to understand price acceptability
3. Evaluating of advertising & Promotions
1. Through qualitative approach
Have a Nice Week Ahead!!!