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 Portions of Market Intelligence

Market Intelligence

Market Research Competitive Intelligence

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 Market Research requires adherence to:
o Research Design
o Data Collection
o Analysis and Interpretation

 Competitive intelligence gathering is less

involved.

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“Market Research is the systematic
collection and interpretation of specific
data related to the resolution of a
specific problem or to satisfy a specific
objective.”

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 One must understand the Customer’s

 Technologies
 Products
 Markets and Customers
 Competitors
 Channels
 Buying Center and Buying Patterns

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 “The results of a research effort
developed for another reason,
information compiled for other
purposes, such as existing sales
tracking information, as well as third
party research.”

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 “The Collection of data directly from
respondents in the population in
question. The marketer determines
what data needs to be collected and
sets out to obtain it.”

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 Statements True False
Sources such as voice and video recordings,
pictures, drawings, films and television programmes,
may not be called secondary data

Primary data becomes secondary data

Secondary data is information collected for the

specific purpose at hand

Primary data can usually be obtained more quickly

and at a lower cost than secondary data

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Define the Problem and Research
Objectives

Design the Research Method to

Achieve Said Objectives

Collect the Data

Analyze the Data and Draw

Conclusions

Present the Findings

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 What information is needed to make
these decisions?

 Should the type of research be

exploratory or conclusive?

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 Example:
› Research Problem
 “ Is there sufficient demand for product X?”

› Research Objectives
 Determining the number of firms in those industries.
 Estimating the present consumption of products similar
to X.
 Estimating the competitive product market shares in
each of those industries.
 Who in the market has the
information?
› Target respondents

 What is asked and how it is asked?

› Sample , method of sampling and research
method.

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 Information is acquired from
secondary or primary data sources.

 Secondary Data Sources

 Pakistan Statistical Year Book (PBS)
 World Bank
 Pakistan Economic Survey
 Firm’s financial statements.

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 Primary Data
› Focus Groups
› In-depth personal interviews
› Structured Surveys

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 Apply appropriate analysis techniques

 Draw appropriate conclusions, given

the results and quality of the data

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 Descriptive Data
› Data that enable comparisons of existing
factors
 Example (Cross tabs , frequency distribution
etc)

 Predictive Data
› Data that enable forecasting future events
 Example (Regression Analysis, Time Series etc)
 Apply information to decisions

 Present the findings

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 Targeting A thorough understanding of
segmented markets supports the
Decision
target decision process.

A thorough understanding of customer

Design needs, reactions, and perceptions
Decision regarding features and attributes of the
offer supports the design process.

Continuous information provides

Go/no-go better decision-making at critical
Decision stages or points in the development
process.

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 Idea
Generation and Business
Launch
Screening Case Analysis
go
First go/no-go Third go/no-go
point – a quick point – does the
market respond
assessment of go
market size, Concept Initiative positively to the
growth rate, fit of “almost finished”
Testing Development product (Beta
organization.
test)?
go
No-go Second go/no-go No-go
point – is there

X
sufficient market
interest?
X
No-go Market Test
X
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 “The collection and informed
interpretation of might appear at
first as a number of random,
unrelated events.”

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 Porter’s five forces framework is rooted
in microeconomics

 The five forces model is based on the

theory of determining the competitive
intensity and attractiveness of a market

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 Internal rivalry is the competition for market
share among the firms in the industry.

 Price Competition erodes the price cost

margin and profitability.
› There are many sellers

› Some firms have cost advantage over others

› Products are undifferentiated and switching costs

are low
 Involvesorganisations entering into an
industry whereby they will gain market
share and competition will intensify

 Few barriers to entry

› Economies of scale
› Loyalty
› Capital Requirements

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2016
 A substitute performs the same or a similar
function as an industry’s product by a
different function
 Limits an industry’s profit potential by
placing a ceiling on prices.

 Extent depends on:

› Switching costs
› Product price
› Product quality
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2016
 Customers who collectively become a
powerful group
 Exert pressure

 Determinants
› Bought in large values of quantity
› Product or service is standard or
undifferentiated
› Buyer is large and supplier is
small
•Enterprise and its Business Environment © Goodfellow Publishers
2016
 The suppliers have power to sell their
products at higher prices.
› Example: Fast Food Restaurants
 Sources of supplier power over
competitors and buyers
› Economies of scale.
› Reputation effects.
› Buyer switching cost.
› Buyer search cost.
› Lack of substitutes
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2016
 Competitive
Product Market
Current
Partners Substitutes

Direct Competitors –
Individually or as Downstream
Value Networks Customers

Upstream
Suppliers New
Entrants

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 Customers

 The Internet

 Business and Trade Press

 Trade shows

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 Pakistan Textile Journal Pakistan Business Journal

Trade Chronicle Pakistan and Gulf Economist

IBEX Flare

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