The use of market intelligence to improve market performance of retail SMMEs in Cape Town

Abstract

Gaining knowledge about the desires of consumers and the actions, plans, and methods of competitors is valuable for recognising marketing prospects and evaluating market success. However, due to the increasing demand from consumers for better product quality and the rise in competition, the utilisation of market intelligence becomes important for an improved understanding of market conditions – both customers’ needs and competitive strategy. Objective: This paper argues that the utilisation of market intelligence to assess market performance would enable effective marketing response to demand, actions, and tactics of customers and competitors. Previous work: A previous study has presented data on a marketing environment characterised by complexity, with both difficulties and possibilities. A finding that shows how market intelligence is used, improves understanding of market conditions for effective marketing action. Methodology: This study employed a positivist paradigm and utilised a survey approach to gather quantitative data from 30 purposively randomly selected respondents from retail small, medium, and micro enterprises (SMMEs) in the central area of Cape Town. The data analysis was conducted utilising both descriptive and inferential statistics. Findings: The results indicate that the limited use of market intelligence prevents retail SMMEs from adequately understanding market conditions, thereby hindering their market performance. Enhanced market intelligence practices are crucial for improving the ability of SMMEs to respond effectively to market demands and competition.