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Marketing Intelligence in MNCs

Volvo A Case Study

Marketing IntelligenceMarketing Intelligence (MI) is the information relevant to a companys markets, gathered

and analyzed specifically for the purpose of accurate and confident decision-making in

determining market opportunity, market penetration strategy, and market developmentmetrics.

Kotlers Model of MKIS

Purposes of Marketing Intelligence

Customer satisfaction

Creative and effective marketing strategy

Realities of the company and its competitors

Strengths and weaknesses

Realities of the marketplace

Opportunities and threats

Competitive advantage

Anticipate the competitive move and develop competitive strategiesWhy Intelligence?

Managers need to increase the quality of:

1) products or services 2) strategic planning and 3) market knowledgeThat results in higher business performance

Marketing Intelligence Vs Market Intelligence

Marketing intelligence is necessary when entering a foreign market.Marketing Intelligence is not the same as Market Intelligence (MARKINT).

It relies solely on publicly available information such as market prices and ancillary

economic and financial data.

Analyzing Marketing Intelligence Data

Competitor analysis -- knowing about competitorsCompetitive Intelligence What should be done

Competitive Technical Intelligence ,Marketing Research, Survey Research, PollingFocus Groups, Strategic Development, Strategic Planning, Environmental Scanning,

Company Information , Customer Database, Web Analytics, Raw Logs & Hosted

AnalysisPrimary Information Sources (Find Experts!): Interviews with internal experts,

customers, and suppliers ,Marketplace surveys, Industry analysts, Business editors,

Associations, Observations, Unpublished documentsSecondary Information Sources: Internal and external databases,Industry and government

Reports, Directories, Statistical sources, Newspapers and magazines, Trade publications,

Criteria Not to be Overlooked:

Balance strategic & operational needs

Adjust the function as the market changes

Determine locus of decision making

Companys structure

Corporate culture

Market environment

An MNC - Volvo Group

Volvo Group was founded 1927 and operates on 185 markets, were about 72000 people

are employed. 2001. Volvo Group is one of the largest manufacturer of trucks, buses andconstruction equipment, were construction equipment stands for 12% of the sales in

2002.

Other areas are marine, industrial power systems and aircraftengine components

were Volvo Group holds a leading position. Since 1999 the focus is mainly on transport

equipment for commercial use.

Various Roles in the Intelligence Process

Core Roles: primary researchers secondary researchers, analysts ,integrators

Supporting Roles: system builders, data builders, knowledge builders, protectors,

decision makers

The approach of four intelligence networks

Dealer Intelligence Network,

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Customer Intelligence Network,

Competitor Intelligence Network

Stakeholder Intelligence Network.

Marketing Intelligence Cycle.

Here, data and information are turned into intelligence.It illustrates five interdependent stages of how the data is collected, organized and

utilized in the company and has therefore been constructed as an ongoing process .The five phases

Directing, Collecting, Validating and Confirming, Evaluation and Interpretation,

DisseminationDirecting Phase - the fundamental issue is what data to collect and for what purpose it

should be used. - Regional managersCollecting Phase - There are many different ways

to collect information, both from primary and secondary sources. Standardised Reports,Sales man, customers, trade shows and stakeholders such as government and branch

organizations.Validating and Confirming Phase - Different authors describe the

validating and confirming phase of the Marketing Intelligence Process differently.Marketing Intelligence Cycle.Evaluation and Interpretation Phase - The evaluation andinterpretation phase is the most time consuming.Dissemination Phase - Here, the

gathered and analysed data, which has been turned into intelligence, will be presented to

the managers.Common Problems: Findings

Managers dont value intelligence

Managers consider intelligence a luxury

Inability to incorporate it into strategy

Managers believe I know my industry!

Unskilled people try to perform intelligence

Managers hoard information The Managers doesnt meet the real needs and concerns of decision makers

Intelligence is seldom used by decision makers

Conclusion since no common marketing unit is established within Volvo and its regionalhub, the MIC cannot be organized entirely. This is due to its complexity, which requires

full attention. Particularly, functions as analysis and sharing of intelligence are not fully

developedRecommendations Define the Terms used in the MIP -for all employees involved in the

MIP to have a profound understanding of what the difference between information andintelligence is. Establish a MI Function - An individual who is directly related to thedecision-makers should lead a MI function Define Intelligence Needed -Volvo shoulddefine the intelligence needed for certain decisions i.e. budgeting, marketing activities

and strategies. The users of the intelligence are mainly managers Define Information

Sources: Intelligence NetworkBased on the intelligence needed a clear definition of

information sources should be conducted. Defining the information sources that will be

used facilitates the information gathering process Organize Soft and Hard Information

While hard information is gathered and reported to a great extent, the soft information isoften neglected. Improve the Analysis Function Evidently, soft information is either not

collected or analysed extensively. It is crucial to have a total understanding of the

business environment when making decisions Make Intelligence Easy to Access Animportant aspect of the MIP is storing intelligence in order for the managers to easily get

access to it while working.

Suggestions1.Investigate the interdependence between providing value added for the

customers and developing long-term relationships

2. Identify key indicators

3. Discern the appropriate analysis methods

4. Knowledge Management

5. Competitive Advantage