Understand the Difference Between Market Intelligence And Market Research To Increase Your Sales Potential
Sep. 22, 2022
Sep. 22, 2022
Market Intelligence and Market Research have been on trend for a while now, but understanding the two separately has been confusing all this time. It is because market intelligence and research have a fragile line of difference. Where the former is related to analyzing the existing industry trends, the latter is more company-specific. But both of these terminologies more or less share the same goal of providing a better customer experience, analyzing the business status, and adopting relevant marketing strategies accordingly.
The professionals practice marketing intelligence to use the already existing data to study their competition, market, customer behavior, political impacts, and much more. While market research does not depend on the available data, companies conduct surveys like Net Promoter Score. Phone calls, collect reviews, and do social media audits to gather company-specific data and use it to transform it into useful information.
Let us understand the terms with their impact on various aspects.
Market intelligence strategies impact many business decisions, one being the impact on the customers. Internal data or information is also considered a type of market intelligence and is of great use for small and mid-sized businesses. Let us take an example of a small restaurant where the owner has existing data (market intelligence) of when the maximum number of people come in and what they order. On the other hand, the restaurant will need to call and enquire (market research) if they want to know the specific reason for the customers' arrival at that particular time and why they order any specific thing. It clarifies how both these processes affect the customers.
The market is, of course, the central aspect impacted by these two strategies. Marketing managers use marketing intelligence to understand and determine their market share and the total amount the customers spend in their industry. Market research is done to determine the customers' preferences based on the various markets your business caters to.
Market intelligence also provides insight into your competitor's business. Generally, small businesses try to identify the existing trends of their competitors on competitive websites, brochures, and papers. Looking at the data helps compare your company's current position with others to prepare pricing strategies and improve services. However, to find out how competitors rank on quality, there is a need for market research, and it can be performed through surveys and phone calls. Market research and market intelligence are often used interchangeably, so understanding their definition and differences matters. It can help you increase your sales potential.
Both of these practices are relevant for any industry to grow, have a proactive approach, and learn what the existing market desires. Where market research helps prepare your business according to the upcoming trends, market intelligence helps you focus on the current business strategies. And both of these processes are necessary to excel in this competitive world.