THE MARKETING INTELLIGENCE SYSTEM

The Marketing Intelligence System

JOHN CAFRENE

BAPRM 42567

The internal records system supplies results data, but the marketing intelligence system supplies happenings data. A marketing intelligence system is a set of procedures and sources managers use to obtain everyday information about developments in the marketing environment. Marketing managers collect marketing intelligence by reading books, newspapers, and trade publications; talking to customers, suppliers, and distributors; and meeting with other company managers. A company can take several steps to improve the quality of its marketing intelligence.

 

 A company can train and motivate the sales force to spot and report new developments. Sales representatives are positioned to pick up information missed by other means, yet they often fail to pass on that information. The company must sell its sales force on their importance as intelligence gatherers. Sales reps should know which types of information to send to which managers. Grace Performance Chemicals, a division of W. R. Grace, supplies materials and chemicals to the construction and packaging industries. Grace sales reps were instructed to observe the innovative ways customers used its products to suggest possible new products. For example, some customers were using Grace waterproofing materials to soundproof their cars and patch boots and tents. Seven new-product ideas emerged in total, worth millions in sales to the company.

                        

 A company can motivate distributors, retailers, and other intermediaries to pass along important intelligence. Many companies hire specialists to gather marketing intelligence. Service providers often send mystery shoppers to their stores to assess how employees treat customers. Mystery shoppers for McDonald's discovered that only 46 percent of its restaurants nationwide met internal speed-of-service standards, forcing the company to rethink processes and training.⁹ Retailers also use mystery shoppers. Neiman Marcus employs a professional shopper agency to shop at its stores nationwide. It finds stores that consistently score high on the service have the best sales. Typical questions their mystery shoppers report on are: How long before a sales associate greeted you? Did the sales associate act as if he or she wanted your business? Was the sales associate knowledgeable about products in stock?.

 

 A company can network externally. It can purchase competitors' products; attend open houses and trade shows; read competitors' published reports; attend stockholders' meetings; talk to employees, dealers, distributors, suppliers, and freight agents; collect competitors' ads; and look up news stories about competitors. Software developer Cognos created an internal Web site called Street Fighter where any of the firm's 3,000 workers can submit scoops about competitors and win prizes. Competitive intelligence must be done legally and ethically, though. Procter & Gamble reportedly paid a multimillion-dollar settlement to Unilever when some external operatives hired as part of a P&G corporate intelligence program to learn about Unilever's hair care products were found to have engaged in such unethical behavior as dumpster diving.

 

 

 A company can set up a customer advisory panel. Members might include representative customers or the company's largest customers or its most outspoken or sophisticated customers. Many business schools have advisory panels made up of alumni and recruiters who provide valuable feedback on the curriculum.