MARKET INTELLIGENCE IN INTERNATIONAL BUSINESS

1) CONCEPT:

INTELLIGENCE:"The ability to apply knowledge to manipulate one's environment or to think abstractly as measured by objective criteria"*

RESEARCH:"The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions"**

MARKET:"A regular gathering of people for the purchase and sale of provisions, livestock, and other commodities"***

MARKET RESEARCH:"Research into the size, location, and makeup of a product market"****

2) QUESTION:What is the difference between Market intelligence and Marketing research and, why is important to make market intelligence in International Business?

ANSWER: The process of market intelligence is very important for any company that wants to expand the sale of their products and services worldwide.

The first thing that I should say is that Market Intelligence is not the same as Marketing Research, and this is explained very well by Ed Crowley, in his article Market intelligence versus marketing research: "Market research is a well-defined discipline with a long history of application in the business world. It takes many different forms, and its ultimate goal is to enhance a firm’s understanding of the market and customer, but it is not market intelligence. While Market intelligence is a much broader term that can be defined as an ongoing, holistic knowledge of all aspects of the marketplace".*****

Although that market intelligence is not the same that marketing research, the first must take, analyze, adapt and implement important information that provides the marketing research.

The first thing that a company must make when it decides to export to other countries and to other markets is a market intelligence, because with this the company can determine if the market that it wants to penetrate is right, after made this first step the company must start to analyze the business environment and with this all risks related to political, legal, cultural and economic factors.

In order to explain properly this last image, I will quote again Mr. Ed Crowley, who makes a very clear and simple explanation about this pyramid: "Market intelligence yields an ongoing and comprehensive understanding of the market. Each of the four knowledge areas - competitor intelligence, product intelligence, market understanding, customer insight- interacts to form a complete understanding of the market. Each competitor’s strategies will impact their product actions, the overall trends of market growth and segment interaction will impact the strategies, and underlying all of this, the customer’s behaviors and attitudes will ultimately drive the market dynamics in terms of growth rates and product acceptance. This integration of all four knowledge areas is the ultimate deliverable for market intelligence. Marketing research is a critical and significant source of information. However, it does not encompass all of the information areas which are covered by market intelligence. The scope of information covered is one of the key differences between marketing research and market intelligence."******

As we saw there are differences between these two concepts, and both provide important information to any organization which wants to operate in foreign countries. The Market Intelligence is very important because day after day makes that companies are in constantly learning, it means that companies have to design, to develop and to implement good strategies, that will seek survival in the market and customer satisfaction.

3) POINT OF VIEW: As own-discipline of strategic management of enterprises, which corresponds to senior management, ie managers and administrators, market intelligence allows, through a constant flow of information, knowing more deeply the market and performance of the company in this market.

Thus market intelligence involves abilities: to add value to existing pricing systems with analysis of trends and prospects in the future; to explain through a clear language the sense of market data; to build local capacities to make sound decisions based on market information and to promote links between opportunities, credit, technical assistance and marketing.

Given that we live in the information age and that we need to know about opportunities for products and services of the companies in the foreign market, we as managers have on hand many aids and tools that allow us to analyze deeply the markets that we want to achieve, these aids and tools are provided by institutions such as PROEXPORT, BANCOLDEX, FIDUCOLDEX, AND THE MINISTERY OF TRADE, INDUSTRY AND TOURISM, which help us to create development strategies in order to plan and prepare better the product and service through a trained staff .

To conclude I want to say that with globalization, the competition is getting stronger and for this reason is completely necessary to know very well the target market of our products and services in order to prevent failures and to encourage the success and profitability. All this can be achieved through a good market intelligence!!!___________________________________________________________
*Merrian Webster Dictionary.(2010).Intelligence.[Online]:
http://www.merriam-webster.com/dictionary/intelligence
**Oxford Dictionaries.(2010).Research.[Online]: http://oxforddictionaries.com/view/entry/m_en_us1284427#m_en_us1284427
***Oxford Dictionaries.(2010).Market.[Online]: http://www.oxforddictionaries.com/view/entry/m_en_us1266136#m_en_us1266136
****Merrian Webster Dictionary.(2010).Market Research.[Online]:
http://www.merriam-webster.com/dictionary/research?show=3&t=1283905306
*****Crowley, Ed.(2010).Market intelligence versus marketing research.On: Quirks's Marketing Research Review.[Online]: http://www.quirks.com/articles/a2004/20041209.aspx?searchID=40935096
******Crowley, Ed.(2010).Market intelligence versus marketing research.On: Quirks's Marketing Research Review.[Online]: http://www.quirks.com/articles/a2004/20041209.aspx?searchID=40935096



-Image 1: Getty Images.Globe blotched with blue pin needles.(2010).Available at: http://www.gettyimages.com/detail/86196623/Photodisc
-Image 2: Getty Images.Shapes orbiting head.(2010).Available at: http://www.gettyimages.com/detail/76092061/Stock-Illustration-Source
-Image 3: Quirks's Marketing Research Review.Market Intelligence.(2010).Available at:
http://www.quirks.com/articles/a2004/20041209.aspx?searchID=40935096