Marketing Intelligence

Marketing intelligence is the systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketplace. The goal of marketing intelligence is to improve strategic decision making by understanding the consumer environment, assessing and tracking competitors' actions, and providing early warnings of opportunities and threats.

Marketing intelligence gathering has grown dramatically as more and more companies are now busily eavesdropping on the marketplace and snooping on their competitors. Techniques range from monitoring Internet buzz or observing consumers firsthand to quizzing the company's own employees, benchmarking competitors' products, researching the Internet, lurking around industry trade shows, and even rooting through rivals' trash bins.

Internal Databases

Internal databases: Pizza Hut can slice and dice its extensive customer database by favorite toppings, what you ordered last, and whether you buy a salad with your cheese and pepperoni pizza, targeting coupon offers to specific households based on past buying behaviors and preferences.

Internal Databases

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The online world is changing,,, Nielsen Online delivers the data, intelligence and Insights to help marketers, publishers, technology companies, arid agencies thrive on this change.

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Many companies routinely monitor consumers' online chatter with the help of monitoring services such as Nielsen Online.

Marketing Intelligence: Procter & Gamble admitted to "dumpster diving" at rival Unilever's Helene Curtis headquarters. When P&G's top management learned of the questionable practice, it stopped the project, voluntarily informed Unilever, and set up talks to right whatever competitive wrongs had been done.

Good marketing intelligence can help marketers to gain insights into how consumers talk about and connect with their brands. Many companies send out teams of trained observers to mix and mingle with customers as they use and talk about the company's products. A Other companies routinely monitor consumers' online chatter with the help of online monitoring services such as Nielsen Online or Brandlntel. For example, Ford Motor Company employs the marketing intelligence firm Brandlntel to monitor blogs and other Internet sites. Ford wants to know what people are saying about its products, their performance, and their looks. It also wants to know about any important issues—positive or negative—that might have consumers buzzing online about specific Ford models. For example, if Brandlntel discovers unanswered product questions or service complaints, it forwards them to Ford's customer-service staff. When appropriate, the service staff can respond online, identifying themselves and asking if they can join the online discussions.9

Companies also need to actively monitor competitors' activities. Firms use competitive intelligence to gain early warnings of competitor moves and strategies, new-product launches, new or changing markets, and potential competitive strengths and weaknesses. A recent analysis by consulting firm PricewaterhouseCoopers found that companies employing competitive intelligence as a critical element in their strategic thinking grow 20 percent faster than those that do not.10

Much competitor intelligence can be collected from people inside the company— executives, engineers and scientists, purchasing agents, and the sales force. The company can also obtain important intelligence information from suppliers, resellers, and key customers. Or it can get good information by observing competitors and monitoring their published information. It can buy and analyze competitors' products, monitor their sales, check for new patents, and examine various types of physical evidence. For example, one company regularly checks out competitors' parking lots—full lots might indicate plenty of work and prosperity; half-full lots might suggest hard times.

Some companies have even rifled their competitors' garbage, which is legally considered abandoned property once it leaves the premises. A In one classic garbage-snatching incident, Procter & Gamble admitted to "dumpster diving" at rival Unilever's headquarters. Unilever's dumpsters yielded a wealth of information about strategies for Unilever's hair care brands. However, when news of the questionable tactics reached top P&G managers, they were shocked and immediately stopped the project. Although P&G claims it broke no laws, it noted that dumpster raids violated its business policies.

Competitors often reveal intelligence information through their annual reports, business publications, trade show exhibits, press releases, advertisements, and Web pages. The Web has become an invaluable source of competitive intelligence. Using Internet search engines, marketers can search specific competitor names, events, or trends and see what turns up. Moreover, most companies now place volumes of information on their Web sites, providing details to attract customers, partners, suppliers, investors, or franchisees. This can provide a wealth of useful information about competitors' strategies, markets, new products, facilities, and other happenings.

Intelligence seekers can also pore through any of thousands of online databases. Some are free. For example, the Committee of

European Securities Regulators' database provides a huge stockpile of financial information on public competitors, and the European Patent Office database reveals patents competitors have filed. And for a fee, companies can subscribe to any of the more than 3,000 online databases and information search services such as Bureau van Dijk Electronic Publishing (BvD), Carol, and Dun & Bradstreet's Online Access. Notes a marketing intelligence consultant, companies "are often surprised that there's so.much out there to know. They're busy with their day-to-day operations and they don't realize how much information can be obtained with a few strategic keystrokes."11

The intelligence game goes both ways. Facing determined marketing intelligence efforts by competitors, most companies are now taking steps to protect their own information. For example, Unilever conducts widespread competitive intelligence training. Employees are taught not just how to collect intelligence information but also how to protect company information from competitors. According to a former Unilever staffer, "We were even warned that spies from competitors could be posing as drivers at the minicab company we used." Unilever even performs random checks on internal security. Says the former staffer, "At one [internal marketing] conference, we were set up when an actor was employed to infiltrate the group. The idea was to see who spoke to him, how much they told him, and how long it took to realize that no one knew him. He ended up being there for a long time."12 The growing use of marketing intelligence raises a number of ethical issues. Although most of the preceding techniques are legal, and some are considered to be shrewdly competitive, some may involve questionable ethics. Clearly, companies should take advantage of publicly available information. However, they should not stoop to snoop. With all the legitimate intelligence sources now available, a company does not need to break the law or accepted codes of ethics to get good intelligence.

Author I Whereas marketing Comment | intelligence involves actively scanning the general marketing environment, marketing research involves more focused studies to gain customer insights relating to specific marketing decisions.

Marketing Research

Marketing research

The systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization.

In addition to marketing intelligence information about general consumer, competitor, and marketplace happenings, marketers often need formal studies that provide customer and market insights for specific marketing situations and decisions. For example, the beer-maker Budweiser wants to know what appeals will be most effective in its sports advertising. Google wants to know how Web searchers will react to a proposed redesign of its site. Or Samsung wants to know how many and what kinds of people will buy its next-generation LCD televisions. In such situations, marketing intelligence will not provide the detailed information needed. Managers will need marketing research.

Marketing research is the systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization. Companies use marketing research in a wide variety of situations. For example, marketing research gives marketers insights into customer motivations, purchase behavior, and satisfaction. It can help them to assess market potential and market share or to measure the effectiveness of pricing, product, distribution, and promotion activities.

Some large companies have their own research departments that work with marketing managers on marketing research projects. This is how Procter & Gamble, Unilever, and many other corporate giants handle marketing research. In addition, these companies—like their smaller counterparts—frequently hire outside research specialists to consult with management on specific marketing problems and conduct marketing research studies. Sometimes firms simply purchase data collected by outside firms to aid in their decision making.

The marketing research process has four steps (see #> Figure 4.2): defining the problem and research objectives, developing the research plan, implementing the research plan, and interpreting and reporting the findings.

Continue reading here: Defining the Problem and Research Objectives

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Readers' Questions

  • giosu
    Which of the following statement regarding competitive marketing intelligence is correct?
    17 days ago
  • Without the provided statements, I am unable to determine which one is correct. Please provide the statements for review.
    • TRISTAN
      Which of the following statements is true regarding competitive marketing intelligence?
      1 month ago
    • There is no list of following statements provided, so it is difficult to determine which statement is true. Could you please provide the options or statements?
      • Madihah
        Which of the following sources constitutes the internal database of a company?
        5 months ago
      • The internal database of a company typically consists of information and data that is generated, curated, and managed within the company itself. Therefore, the correct answer would be: - Transaction data - Employee records - Customer information - Financial statements
        • Thomas
          Is the systematic design collection analysis and reporting of data?
          5 months ago
        • Yes, the systematic design collection, analysis, and reporting of data is a key process in research and scientific studies. This process involves careful planning and design of data collection methods, rigorous analysis of the collected data using appropriate statistical techniques, and clear and accurate reporting of the findings. It helps ensure the reliability and validity of the research and allows for the interpretation and generalization of the results.
          • Joseph
            Which of the following is an advantage of using an internal database?
            5 months ago
          • There are several advantages of using an internal database. One of the main advantages is increased security and control over the data. Since the database is internal, the organization has complete ownership and can implement strict access controls to ensure that only authorized individuals have access to the data. This helps protect sensitive information and reduce the risk of data breaches. Another advantage is improved performance and faster access to data. Internal databases are typically optimized for the organization's specific needs, allowing for efficient storage and retrieval of data. This can result in quicker response times when accessing information, which can be crucial for time-sensitive operations. Additionally, using an internal database allows for more flexible customization and integration with other systems. Organizations can tailor the database to meet their unique requirements, such as adding specific fields or functionalities. Integration with other internal systems, such as customer relationship management (CRM) or enterprise resource planning (ERP) systems, becomes easier with an internal database. Furthermore, an internal database provides better data governance and compliance. Organizations can enforce data governance policies and ensure compliance with regulations by closely monitoring and managing the data within the internal database. This enables better data quality and consistency. Lastly, an internal database allows for offline access to data. Even when there is no internet connectivity, authorized users can still access and work with the data stored in the internal database. This can be particularly useful in remote or off-grid locations where consistent internet access may not be available. Overall, the advantages of using an internal database include increased security, improved performance, customization, data governance, compliance, and offline accessibility.
            • luwam
              Which of the following is not a method of gathering good marketing intelligence?
              1 year ago
            • Time travel
              • Holly
                Which of the following is an advantage to using internal databases for information?
                1 year ago
              • Internal databases are more secure and easier to control than external databases. They also provide greater data integrity and reliability, as well as faster access to data. Additionally, they allow for more efficient data manipulation, customization, and integration with existing systems.
                • Kyra Findlay
                  Which of the following is true of competitive marketing intelligence?
                  1 year ago
                • Competitive marketing intelligence is the systematic gathering, recording, analysis and distribution of publicly available information about competitors and their activities. It helps organizations understand their competitive environment and make more informed business decisions. It helps organizations anticipate their competitors’ strategies and respond accordingly.
                  • alcide romani
                    What are marketing intelligence strategies of unilever?
                    1 year ago
                    1. Identify and monitor key market trends: Unilever uses a combination of traditional research methods and technology-enabled monitoring to keep an eye on the competition, emerging market trends, and customer preferences. This data-driven approach allows Unilever to make informed decisions and adjust their strategy in response to market changes.
                    2. Leverage customer insights: Unilever leverages customer insights to customize their products and services to meet the demands of their customers. Through comprehensive surveys, interviews with buyers and sellers, and data analysis, Unilever is able to gain a better understanding of their customer base and develop more effective tactics.
                    3. Utilize data-driven strategies: Unilever believes in utilizing data-driven strategies to gain a deeper understanding of their customer base and the way consumers interact with their products and services. From customer segmentation to predictive analytics, Unilever is committed to using data-driven strategies to better understand their customers and the market.
                    4. Analyze customer sentiment: Unilever uses social media monitoring tools to track the sentiment of customer conversations across digital platforms. This allows Unilever to better understand customer perceptions and make informed decisions in order to improve their products and services.
                    5. Develop relationships with key stakeholders: Unilever seeks to build strong relationships with key stakeholders, such as influencers and regulators, to gain market insights and stay ahead of the competition. This gives Unilever a better understanding of the industry and keeps them informed of changes in the market.
                    • marzio lorenzo
                      What is garbage handling as used in marketing intelligence?
                      1 year ago
                    • Garbage handling as used in marketing intelligence is the process of collecting, analyzing, and interpreting customer data. This data is used to inform marketing strategies and tactics, helping businesses to make better decisions regarding their target audience. Data can be collected from customer surveys, email campaigns, web analytics, and other sources. Once the data has been collected, it must be organized and analyzed in order to identify trends or insights that can help to improve marketing efforts. Garbage handling helps businesses to make data-driven decisions, allowing them to craft more effective and targeted marketing campaigns.
                      • carli
                        How marketing intelligence assists the marketers in the promotion sales volume?
                        1 year ago
                      • Marketing intelligence assists marketers in the promotion of sales volume by providing them with the necessary data and insights to create more effective campaigns. This data includes insights into customer demographics, preferences, and interests. This allows marketers to target audiences more accurately and craft messages that are tailored to specific customers, increasing the likelihood of higher sales volumes. Furthermore, marketing intelligence can help marketers identify new opportunities and uncover trends that can be used to develop more effective promotional campaigns.
                        • renato
                          How is marketing intelligence assist organisation to set sales objective?
                          1 year ago
                        • Marketing intelligence can assist an organization in setting sales objectives by providing valuable insights into customer trends and preferences, as well as market conditions. By leveraging marketing intelligence, organizations can better understand their target audience, identify what motivates them, and gain a better understanding of the competitive landscape. This detailed knowledge can help establish informed and achievable sales goals, and provide the foundation for creating successful sales strategies and tactics. This type of intelligence is particularly useful for long-term planning, as it can aid in anticipating customer needs and adjusting strategies in order to stay ahead of competition.
                          • patricia
                            How can companies collect markering intelligence?
                            1 year ago
                            1. Develop Customer Surveys: Companies can use customer surveys to collect data about customer preferences and their buying behavior. This can help marketers create campaigns tailored to their target market.
                            2. Analyze Competitors’ Strategies: Analyzing competitors’ strategies can provide insight into what works and what doesn’t work in the marketplace. By understanding their competitors’ strategies, companies can create more effective marketing campaigns.
                            3. Monitor Social Media Platforms: Social media platforms are an effective way to track customer sentiment and feedback about a company’s products and services. Companies can use this information to develop more targeted campaigns.
                            4. Utilize Big Data: Companies can use large amounts of data to uncover customer preferences, analyze customer behavior, and develop insights about the target market. By leveraging big data, companies can better understand their target customers and create more effective marketing campaigns.
                            5. Analyze Industry Trends: Companies should analyze industry trends in order to stay ahead of the competition. By understanding the current trends in the market, companies can better target their messaging and create campaigns that are more likely to be successful.
                            • linda goold
                              What is the marketing intelligence of unilever?
                              1 year ago
                            • Unilever's marketing intelligence efforts involve gathering and analyzing relevant market data to inform product and marketing decisions. This includes monitoring consumer trends, competitor activities, and market dynamics such as opportunity identification and sizing. It also includes determining the most effective marketing channels/platforms, pricing strategies, promotional tactics and tactics to maximize customer lifetime value. Unilever also focuses on understanding consumer behavior, including preferences, motivations and buying patterns, to better target their marketing campaigns.