The Integration of Market Research and Competitive Intelligence

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The Integration of Market Research and Competitive Intelligence

  1. 1. The Integration of Market Research & Competitive Intelligence Presented by SIS International Research March 2010
  2. 2. THE OVERALL DIFFERENCE Market Research Tells you what you want and need to know “Is a science”Business Intelligence May tell you what you don’t want to know “Is an art” Copyright © 2010 – 2020. SIS International Research Inc. All Rights Reserved. •2
  3. 3. THE EVOLUTION AND THE “ERA”OF MARKET RESEARCHMarket research evolved during the post World War II period,driven by the rapidly growing US consumer marketDuring the 1950’s – the 1970’s, application of scientific andanalytical methods were employed for: market segmentation market projection development of consumer profiles attitudes and usage studies new product concept testing tracking and performance/measurement studies of retail products customer satisfaction studies Copyright © 2010 – 2020. SIS International Research Inc. All Rights Reserved. •3
  4. 4. THE “ERA OF COMPETITION” –THE EMERGENCE OF COMPETITIVE INTELLIGENCE During the 1980s, the US economy experienced intense competition from Japan, followed by other Asian countries, in the automotive and manufacturing segments. Out of “defensive” measures to protect their domestic market shares, US firms started to monitor their domestic and foreign competition. CI Research methods primarily consisted of scanning the literature and primary research. 1986 – The emergence of SCIP; professional organization Copyright © 2010 – 2020. SIS International Research Inc. All Rights Reserved. •4
  5. 5. IN THE POST COMMUNIST PERIOD 1990sThe world began to “go global”Market research “went global” to the developing countries[e.g. China, India, Russia, Latin America, etc.] Was primarily quantitativeOn the other hand, CI was most developed in the US Was primarily qualitativeThe problem: Most firms knew how to use market research dataand findings but did not know how to use BI/CI studiesThe challenge remains: “to turn CI into actionable information” Copyright © 2010 – 2020. SIS International Research Inc. All Rights Reserved. •5
  6. 6. CONTRAST IN RESEARCH METHODSAspect of Research Market Research CI MethodsFocus On the present and On past, present and past behavior futureLevel of impact Moderate High – “have more to lose and gain”Research Method “Structured” “Unstructured qualitative and qualitative” quantitativeTarget respondents Identified and known UnknownMethod of Questionnaire and “Oblique” or indirectinterviewing direct questionsMethod of Analysis Crosstabs, statistical “Putting the pieces of analysis a puzzle together” Copyright © 2010 – 2020. SIS International Research Inc. All Rights Reserved. •6
  7. 7. IN THE 21ST CENTURY –THE INTEGRATION OF MARKET RESEARCH AND COMPETITIVEINTELLIGENCE Corporate downsizing has forced strategic planning, market research, and competitive intelligence to become “more efficient,” and in some firms, to merge into one department. The results of market research studies are comparatively easier to track than CI studies. The integration of both of these methods generates a “powerful cocktail” of intelligence for the organization if they know how to utilize the information for strategic and tactical decision making. Copyright © 2010 – 2020. SIS International Research Inc. All Rights Reserved. •7
  8. 8. EXAMPLES OF HOW TO INTEGRATE MARKETRESEARCH AND COMPETTIVE INTELLIGENCE Market Research Competitive Integrated Intelligence Intelligence Market Segmentation Analysis of existing Results in strategic Study and new competitor re-positioning of the entry into these markets segments Focus Groups on new Conduct a search of Integration of the product concept test potential new competitive products products or start up into the focus groups firms and the analysis Conjoint Price Competitive pricing Development of analysis tactical and long term pricing analysis with scenarios Copyright © 2010 – 2020. SIS International Research Inc. All Rights Reserved. •8
  9. 9. SUMMARY/CONCLUSIONS Opportunity exists to integrate business intelligence with market research to achieve maximum “intelligence yield” Caution: monitor the projects to avoid duplication Remember: market research and BI/CI employ different skill sets Do not assume that the research executives can be “cross functional” A database should be created which catalogues these “hybrid” projects to enable your firm to track the success of this functional area Copyright © 2010 – 2020. SIS International Research Inc. All Rights Reserved. •9

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