Manufacturers will need to invest prudently in market intelligence for better informed decision making, in the face of the sluggish U.S. economy, the European debt crisis and new emerging markets and competitors. Companies would be well advised to use market intelligence systems and techniques, and apply them equally to supply chain management and product development. This however, would require a major change in thinking because market intelligence is mostly regarded as part of the marketing function, even though it is often linked to strategic planning.
These are some of the conclusions regarding market intelligence within the manufacturing and industrial industry from the 2011 Global Market Intelligence Survey. The study, from the Global Intelligence Alliance, surveyed 989 companies across North America, Latin America, Europe and Asia Pacific, of which 192 respondents were global manufacturing and industrial companies. Conducted in March 2011, the online survey looked at the state of market intelligence, the perceived benefits, how it supports decision-making, and anticipated future developments.
Some of the key survey findings include:
• Over 80% of manufacturing and industrial companies surveyed have systematic market intelligence operations in place. Of those that don't, 31% surveyed intend to launch one within 12 months.
• The majority set up their market intelligence functions under Sales & Marketing (39%).
• Compared to some other industries, the market intelligence functions at manufacturing and industrial companies work closest to their CEOs and prefer small teams.
• About half (57%) use market intelligence only on an ad-hoc basis.
• The average budget spent on market intelligence, including internal human resources costs, is about 1 million Euros or 1.4 million US dollars.
• 63% intend to increase their investments in market intelligence over 2012-2013. However, this percentage is moderate compared to other industries, such as the Chemicals (79%) and Automotive (69%) industries.
Global Intelligence Alliance is a market intelligence and advisory company with 12 offices around the world.
