The Chair Trade is an independent furniture store that specializes in selling Am
ID: 459993 • Letter: T
Question
The Chair Trade is an independent furniture store that specializes in selling Amish-style furniture and household items. Until the first of the year, its overall sales revenue was slowly increasing. Since the first of the year. however, sales of small items increased while sales of furniture decreased, leading to declining sales revenue. How could the owner of the store rely on market intelligence to understand the change in consumer buying behavior? Should the owner rely solely on market intelligence? Why or why not?
Explanation / Answer
Today market is very competitive so for that need to be much focused & use the different marketing concept to capitalize the market or customer. Need to understand the nerves of customer to stand out in the market. Same case happens in this case. When The Chair trade open in market for the first year as they are new in market so customer looks a new option respective exist one. So to continue for first year they get customer based their variety, type of furniture so they started earning for the first year. But for second year they failed to get the market. Why this happen we have look into different angle, perspective, reason behind that etc. How market behave need to know for the sake of business.??
Keeping track of your competition and the state of your industry is an integral part of operating any business. Traditionally, that information has been termed "market intelligence." In recent years, however, the practice of collecting market intelligence has expanded to include analysis and analytics that can help you improve your business model and projections.
At its core, market intelligence uses multiple sources of information to create a broad picture of the company's existing market, customers, problems, competition, and growth potential for new products and services. Sources of raw data for that analysis include sales logs, surveys and social media, among many others.
In general, business intelligence refers to broader information set about customers and product lines, such as how many products were shipped, the total number of sales in a month and other transactions occurring within a business. In contrast, market intelligence focuses on specific classes of customers, including demographic and geographic information and what they buy, all of which can help inform an analysis of business intelligence. Market intelligence also takes into account what is happening with the competition, which business intelligence ignores altogether
Successful market intelligence answers concrete questions about current and potential customers and competitors, and helps the Store determine internal goals. Questions that market intelligence can address include:
Small businesses can set up processes to maintain customer lists and some kind of customer feedback program to collect customer intelligence in an effective and largely inexpensive manner
Keeping track of all the information included in market intelligence can quickly become time-consuming for small companies. Many online tools exist to help you gather, analyze and store your market intelligence. While an individual can handle much of the work of market research for a small company, as your company grows you may face new challenges devoting sufficient time to intelligence. As the amount of data gets larger, it may become necessary to use statistical tools and more complex technologies to handle and manipulate the data
With the help of market intelligence owner of store can understand buying behavior of consumer. It gives the idea about what went wrong? What should be prepared?
Benefits of Market intelligence
Single Customer View
Everything we do impacts on our customers buying behavior. Marketing, sales promotion, pricing, competitor activity and service can all result in more sales or lost sales. Store that have developed a single customer view are able to develop customer segmentation based on customer value, understand exactly how much marketing activity to carry out to which customers and which of their most valuable customers are at risk of leaving. Pulling the data together into a single view and then drawing conclusions
Data Enrichment
The world of data is moving very quickly. Every new online tool, app or social network has the potential to contain valuable data on your customers that could help predict the value they are to you. Linking your sales reports, marketing campaigns, customer database and your customers social media activity might sound fanciful but is just one of the out of the box features
Customer Retention
You worked hard to bring in new business from your rivals and your best customers are constantly under attack from your competitors. Understanding those customers, their value to you and if they are likely to leave you would be very useful, right. Imagine then if you could also predict when this could happen and what kind of strategies would prevent them leaving you.
Increasing Up sell
Companies with lots of customers and lots of products face a familiar problem. How do you know which products to target at which customer? You could leave it to the customer to ask for what they need, when the time is right, but the chances are your competitors will target them with a nice offer before you get a chance and then guess who just got a new customer!
Reason that rely on marketing intelligence because market intelligence asked following questions set so owner of store get information based on that can make the strategy.
What kinds of people buy our product?
What do they value?
What do the buy?
What kind of new product would they like to see in the market?
Why the sudden change in consumers buying patterns?
What if our competitors are attracting more consumers and why?
What would be the effect of changes in the price of our product?
These and other related questions are the key to informed marketing. Decision making As we already know that a prerequisite for the adoption of a marketing orientation is knowledge about consumers and other aspect of the marketing environment that affect store operation’s owner obtain information by informal and formal means. Casual discussion with customers at exhibitions or through sales calls can provide valuable informal information about their requirement, competitors activities and future happening in the industry. Some companies particularly those who have few customers, rely on these types of interaction gathering to keep abreast of market changes.
Should the owner rely solely on market intelligence?
No
Why??
Because there are number of tool & technique of available in the market so go according need to go for exploring the market condition. Following are the method owner can take benefit out of that.
Internal Record System:
The most basic information system used by marketing executives is the internal reports system. This system records sales, order, stock, prices, cost, inventory levels, receivables, payables and basic financial information. By analyzing this information owner can spot important opportunities and problems.
Marketing Intelligence System:
This can be described as the set of procedures and sources used by owner to obtain everyday information about pertinent developments in the marketing environment. These facts about the development in the environment are disseminated to the owner to be used as a basis for marketing decision.
Marketing Research System:This is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the store. This system comes out as a specific study of a situation so as to promote enough information, which will help the marketing manager to make intelligence decision about the situation.
Marketing Decision Support Analysis:Marketing decision support system is a co-ordinate collection of data, systems, tools and techniques with supporting software and hardware by which an store gathers and interpreted relevant information from business and environment and turns it into a basis for marketing actions