Market Intelligence: We are experiencing a profound transformation in how we lead our lives and carry out our daily activities. However, investing in innovation without adequate and strategic direction does not guarantee a competitive advantage.
Our final entry into the age of hypoconnectivity and the Internet of Things is revolutionizing everything around us. All these changes expand to the corporate world as well. The rapid obsolescence of products and services, associated with broad access to information and growing competitiveness in any business sector, requires companies to innovate to survive this new reality constantly.
You need to know where, how, and when to innovate. But how to do it? Market intelligence is the answer! Do you want to know more about market intelligence and its close relationship with strategic innovation? So be sure to check out our post today!
What Is Market Intelligence?
To understand market trends in real-time, market intelligence can be described as the company’s search, organization, and analysis of relevant information. This strategy allows the company to anticipate these trends and adequately prepare for possible threats.
By transforming and translating raw data, such as references about competing markets and consumer behavior, for example, into accessible and analyzable information, the company’s managers and employees can have correct insights about the innovations and strategies needed by the organization at that time and given moment.
The data used for analyses related to market intelligence strategies are collected through the internet. The massive volume of data available daily on the network (Big Data) is a full plate for this.
However, it is necessary to clarify that if, on the one hand, the immense amount of data can be highly beneficial to market intelligence actions, on the other hand, the complexity of analyzing this information increases proportionally.
And the simple collection of raw data, by itself, says nothing. You need to know how to interpret and analyze them, asking the right questions at the right time. That’s precisely where market intelligence lies.
Fortunately, significant investments are no longer necessary for this to happen, such as creating a specific sector for this function within the company.
With the rise of simple IT solutions, any manager can become a great data analyst. There are solutions, such as software and business intelligence platforms, already available on the market, which can be acquired and applied by companies of all sizes and segments.
Why Is It Essential For Companies?
By compiling and analyzing data such as consumer behavior, complaints, claims, customer habits, and preferences, as well as strategies and products launched by competitors, it is possible to create a solid base of knowledge to, from there, create and innovate strategically.
Check out some of the questions that can be answered with market intelligence:
- Who is the current customer? And the potential?
- What are the real problems in the market?
- What is the specific market segment in which the company operates?
- What is the perception of the brand by consumers?
- Who are the leading market influencers?
- What are the current market trends? And the future?
- What are the actions, evolutions, and directions of the competition?
- What are the best-selling approaches?
- What are the possible functionalities, products, and services that can be developed?
Market intelligence allows the company to act rather than react. Unlike solving problems and plugging holes, the company anticipates these problems, creating solutions before any negative consequences can arise.
In addition, it is possible to create more targeted and individualized communication strategies for customers, who, although belonging to the same “group,” obviously have distinctions between themselves. Thus, the relationship with consumers significantly improves, increasing levels of loyalty and word-of-mouth marketing.
Finally, market intelligence allows the company to have precise direction and focus on strategic decision-making, which goes straight to the point and allows significant leverage in competitiveness, thus guaranteeing the survival of the organization in the current market.
How Does Market Intelligence Work Together With Strategic Innovation?
Market intelligence can be used in all sectors and departments of the company: human resources, sales, marketing, etc. However, it becomes essentially essential when talking about the area of innovation.
As we mentioned in the introduction to this post, innovating is necessary for any company that is minimally concerned and attentive to market trends. However, knowing precisely where to innovate, why, and when is essential. Otherwise, innovation actions may prove fruitless and even fail, generating a tremendous waste of financial, human, and intellectual resources.
Through access to relevant data and information about the business, customers, market, and competitors, provided by well-applied market intelligence strategies, the company will be able to innovate with excellence. The correct analysis of the data generated allows the creation of products, services, and systems that fit into the customer’s life and stand out from the competition.
Understanding what customers need, creating alternatives that can address these needs, and effectively helping them at some crucial point in their lives are the first steps to achieving excellence and winning over your consumers.
And it is precisely in this aspect that market intelligence operates, providing competitive advantages and effectively contributing to the company’s consolidation in the market in which it operates.
Market intelligence’s great challenge is associating the results found in these analyses with the company’s and customers’ objectives. This way, it can significantly leverage the brand, products, and services.