Marketing Intelligence in MNCs Volvo A Case Study Marketing Intelligence Marketing Intelligence (MI) is the information relevant to a companys

s markets, gathered and analyzed specifically for the purpose of accurate and confident decision-making in determining market opportunity, market penetration strategy, and market development metrics. 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 strategies Why Intelligence? Managers need to increase the quality of: 1) products or services 2) strategic planning and 3) market knowledge That 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 competitors Competitive Intelligence What should be done Competitive Technical Intelligence ,Marketing Research, Survey Research, Polling Focus Groups, Strategic Development, Strategic Planning, Environmental Scanning, Company Information , Customer Database, Web Analytics, Raw Logs & Hosted Analysis Primary Information Sources (Find Experts!): Interviews with internal experts, customers, and suppliers ,Marketplace surveys, Industry analysts, Business editors, Associations, Observations, Unpublished documents Secondary Information Sources: Internal and external databases,Industry and government Reports, Directories, Statistical sources, Newspapers and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 and construction 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,

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, Dissemination Directing 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 and interpretation 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 regional hub, 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 developed Recommendations 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 and intelligence is. Establish a MI Function - An individual who is directly related to the decision-makers should lead a MI function Define Intelligence Needed -Volvo should define 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 Network Based 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 is often 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 An important 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