Market intelligence can turn around businesses

YES, while business involves risks, which in some instances might necessarily involve a leap in the dark, there is need to know the sensitivities of the market in which one operates.

Put simply, in every business one should have a thorough appreciation of consumer tastes and preferences, cultural prejudices, income levels (disposable incomes) and the level of competition that is likely to exist in that market segment.

Failure to appreciate market dynamics may be disastrous.

If one is in events management, for example, they are expected to be knowledgeable about consumer expectations, tastes, venues, the right amount to charge and type of the clientele.

But all this information must be customer specific, hence the need to have intimate details about both the customer and the industry.

And this can only be possible if a business invests in market research.

Keeping track of your competition and the state of your industry is an integral part of operating any business.

Such kind of information has come to be known as market intelligence.

It is believed, however, that in recent years, the practice of collecting market intelligence now includes analysis and analytics.

This can help in improving business models and forecasts.

Customers are usually the most important source of data.

It is important to keep pace with customer tastes, wants and needs because they usually change over time, which is why it literally pays to make sure that market intelligence remains relevant. It is not surprising that a strategy that used to work in the 80’s may not work in 2017.

Some experts say that evolution — not revolution — can be key to longevity in business.

Product lines therefore have to continue to be upgraded by introducing new ones and phasing out outmoded products and services.

Before spending significant sums on developing a new product or service, there is need to first carry out thorough market research.

Imagine producing a 5110 cellphone in this day and age. Most likely, no one will buy it, but this is only an assumption.

The world is evolving at a faster rate and Zimbabwe should not be caught napping.

High levels of commitment and diligence can take Zimbabwe to greater heights. While this might be relevant for businesses, it is also applicable to Government.

Thorough research should precede any policy.

But it has to be considered and appreciated that Zimbabwe is presently facing countless economic challenges, and it might not be easy to come up with a separate fund to gather market intelligence.

However, in the medium to long term, it might be wise to do so.

Zimbabwe has vast unexplored opportunities, which needs to be tapped. These opportunities, however, need to be publicised.

The new competitive foreign investment environment has prompted analogies between competition among governments for foreign investment and competition among firms for market share.

Given the similarities in the nature of the competition, it is not surprising that countries are adopting marketing strategies that parallel those of private companies.

Some of the findings of research on company marketing programmes can thus benefit countries that are trying to attract investment.

Organisations seeking to develop competitive strategies for marketing activities can, to some extent, manipulate three variables in their overall marketing programmes, that is, the product, the price, or the promotion.

Businesses should have nuanced views of all these variables.

Sometimes when prices are perceived to be too high, they could drive some or all potential customers away. But what some business owners don’t realise is that offering prices that are too low can create the impression of low quality products or services, which can be equally damaging to the brand.

It has to be considered that customers are not always looking for the cheapest option.

So the key to price setting lies in knowledge of the market.

A lot of people have lost money by simply not doing adequate homework first before venturing into a business plan. Failure to appreciate market dynamics will almost always result in failure.

Of late, there has been talk of how Rwanda has evolved into a great country to invest in.

While this might be true, it might be important for businesses to assess for themselves if their businesses can safely invest in such an environment. The copy and paste approach clearly does not work.

A winning formula for some companies might not be workable for others. Market intelligence therefore helps in identifying gaps in the market based on what competitors are doing.

It helps in regularly assessing what competitors are doing and the areas of the market they are focusing on.

While the economy might not be in best shape, companies might need to start considering investing in both research and market intelligence. Such an investment cannot possibly be considered as an extra cost to business, but as capital investment.

The more businesses stick to current practices, the more they are likely to be irrelevant in the future.

THE adage “information is power” is still relevant in the world that we live in today, more so for local businesses as it determines either the success or failure of a business venture.

Taurai Changwa is a member of the Institute of Chartered Accountants of Zimbabwe and an Estate Administrator. He has vast experience on tax, accounting, audit and corporate governance issues. He is a director of Umar & Tach Advisory. He writes in his personal capacity and can be contacted at tauraichangwa1@gmail.com or or WhatsApp on 0772374784.