Thursday, November 28, 2013

(4.2) Who should your market intelligence function report to?

So who should a market intelligence person or team report into? In many companies you will find such a role in the marketing department. This is perhaps due to the confusion with the role of marketing intelligence, which has more to do with managing databases for lead generation purposes. Market intelligence, however, covers many more activities and its impact should be much broader than just marketing. In fact in many ways it should assess the impact and direction of the marketing function, so in that sense it is perhaps better to leave it out of the marketing department all together.

In other companies the market intelligence role would report in the ‘Operations’ team. This certainly makes sense since the Operations department has a footprint in every activity of a company, so this would ensure that market intelligence stays in touch with every aspect of your business. Furthermore, if ensuring corporate growth  is part of the responsibilities of Operations, market intelligence should certainly offer a valuable contribution to this effort.

Bigger companies will often have a strategy division responsible for detecting untapped market potential. Its responsibility involves assessing markets en improving the strategic positioning of the company, where market intelligence obviously plays a crucial role. Also, by nature almost, this division needs to develop strong working relationships with each other divisions of a company, which helps to realize the full potential of a market intelligence function.

Regardless of where exactly you establish your market intelligence practice, there are some guidelines to keep in mind in order to maximize the effectiveness of this role:

  • The function needs to be in a position to establish working relations with each and every division within the company;
  • It needs to be perceived as a neutral function, although intricately it needs to challenge the effectiveness of every other division;
  • Ideally it should be situated at maximal 2 levels from the CEO.

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