The Impact of Marketing Intelligence on the Market Share of the Jordanian Commercial Banks Download PDF

Journal Name : SunText Review of Economics & Business

DOI : 10.51737/2766-4775.2020.016

Article Type : Research Article

Authors : Ismaeel B and Alzubi MM

Keywords : Marketing intelligence; Market share; Jordan; Commercial banks

Abstract

The aim of this study is to explore the effect of marketing intelligence on market share through exploring competitive insight, market insight, and positioning, on the overall market share. The population of the study consisted of commercial banks in Jordan totaling 13 banks. The researchers distributed 130 questionnaires; 95 questionnaires were retrieved with a percentage of 73%. The study concluded the following findings: There is a strong positive effect between competitive insight and served market share, and a moderate positive effect between competitive insight and overall market share. There was no positive effect between relative market share and competitive insight. There is a moderate positive effect between marketing intelligence and overall market share. Moreover, in a weak degree between marketing intelligence and served market share; as well as there was no positive effect between relative market share and marketing intelligence. There was a moderate positive effect between market insight and overall market share. There was no positive effect between served market share and relative market share. There was a moderate positive effect between positioning and the overall market share and in a weak degree with served market share. There was no positive effect with relative market share. Based on the findings of the study the researcher presented several recommendations.


Introduction

The success of the marketing process depends to a large extent on the marketing information systems and the success of each component of these systems. In addition, marketing management needs marketing information systems to be able to identify and measure marketing opportunities, analyse and forecast demand, and analyse market sectors. Moreover, to understand what is happening inside and outside the organization, the organization needs effective marketing information systems that aim through these systems to monitor its marketing environment directly, as the micro-environment includes everyone who could influence the organization's ability to produce and sell, including suppliers, marketing intermediaries, customers, and competitors. Also, macro-environment includes the vast array of forces, demographic, economic, sociocultural, natural, technological, and political and legal, each affect sales and profits. Nowadays, it has become necessary to adapt a marketing intelligence system that commercial organizations depend on, especially commercial banks, considering the intense competition and increasing developments in the business environment. To predict the market share, marketing information systems carry out many marketing activities such as sales planning, planning for the development of services and products, and planning for promotional campaigns, as sales planning is the basis for preparing pricing strategies, advertising, and promotion, and in the pre-evaluation of sales personnel and is the first step in the profit planning cycle. In addition, the process of analysing possible opportunities for introducing new services and products, studying the obstacles and basic characteristics of them, and determining the potential for success of their marketing, is based on the use of components of marketing information systems, which analyse the reports available about the consumer in light of information about sales, services and products provided in the past, and information about the size and composition of the current market against which the desired characteristics of the new good or service can be indicated. Many organizations achieved double profits because of benefiting from the information of their Marketing Intelligence department. For example, service organizations and what they can achieve from competitive advantages as a result of studying their performance compared to the performance of competitors. What happens in telecommunications organizations and banks is that some employees of the Marketing Intelligence Department are assigned to carry out real transactions as customers with competing organizations to study the performance of competitors.


Problem Statement

The special circumstances that have occurred in the Middle East and that have made Jordan a fertile and safe investment environment to increase competition between commercial companies in general, and banks. Therefore, the basic question that this research attempts to answer is how can banks deal with this challenging and competitive environment?

Thus, the main interest in this research is to determine the extent of the effect of marketing intelligence on the market share under the scenario of massive amounts of information, promotional offers, and high-quality services, which raises a further question: How can such banks retain their customers in light of such strong competition?

Therefore, through this study, the researcher intends to discover the philosophy of application by Jordanian banks in determining their market priorities and determining the wants and needs of the customers when developing marketing plans. Aside from the study being an important and useful addition to scientific knowledge, the results will remove ambiguity in the entire commercial sector. This topic is quite broad, but the researcher was able to confine the study to a narrower scope by studying the effect of marketing intelligence on the market share. For conducting this study, the researcher constructed a model composed of the following variables: Served market share, relative market share, and overall market share. Each variable also includes dimensions identified from the previous literature. Their interactions are measured through field analysis and descriptive analysis using a questionnaire as the research instrument. From this work, the researcher expects to discover the effect of this system and the strength of the resulting relationship between customers and marketing intelligence.


Objectives of the Study

The objectives of the current study are as follows:

  • To determine the impact of marketing intelligence on the market share in Jordanian commercial banks.
  • To determine the reality of marketing intelligence in Jordanian commercial banks.
  • To determine whether demographic variables (age, gender, qualifications, experience, and career level) play a role in the effect of marketing intelligence on market share; and
  • To come up with a set of recommendations based on the results of the study that could help decision-makers in the banks under study to excel through optimum utilization of marketing intelligence.


Research Questions

The current study seeks to answer the following research questions:

  • What is the effect of marketing intelligence on market share?
  • Are there any significant statistical differences due to the effect of demographic variables (gender, age, educational level, experience, and career level) on market share?



Methodology

To answer the above research questions and fulfil the goals that have been set, the researcher formulated some hypotheses and then performed some analyses to verify these hypotheses in order to elucidate the present situation regarding the marketing intelligence in commercial banks in Jordan. The researchers used analytical and descriptive methods to try to describe and assess the reality of the effect of marketing intelligence on market share. In addition, the researcher used a descriptive-analytical approach in order to try to compare, interpret, and evaluate the results in the hope of reaching meaningful generalizations about the topic under the study. This research used both primary and secondary research methods to collate data. The secondary data has been obtained via a review of previous studies related to the subject of interest. The primary data was collected via a questionnaire distributed to marketing managers, sales and information systems managers and sales coordinators. In order to gather data to answer the questions of the research, the developed questionnaire consisted of three parts. The first part was designed to collect demographic data, specifically gender, qualifications, overall experience, age group, job title, years of experience and management level. The second part covered the independent variable and included indicators that measure marketing intelligence, which were adopted [1,2]. The third part of the questionnaire covered the dependent variable and included indicators that were used to measure the market share and drew on the work [3-7].


Study Population and Sample

The population of this study is all commercial banks totalling (13) banks. The researcher selected all the banks through a comprehensive survey. The researcher administrated the questionnaire on the marketing staff in all those banks (n=130) and retrieved (95) valid questionnaires with a rate of (73%). Table (1) presents the distribution of the sample according to the study variables (Table 1).

Table 1: The distribution of the sample according to the study variables.

Variable

Category

Frequency

Rate

Gender

Male

38

40.0

Female

57

60.0

Age

20 to 30-yrs

53

55.8

30yrs to 40-yrs

27

28.4

40 yrs to 50-yrs

15

15.8

Educational level

Diploma

21

22.1

Undergraduate

59

62.1

Graduate

15

15.8

Total Experience

1 to 5-yrs

33

34.7

5yrs to 10- yrs

32

33.7

10 yrs to 15-yrs

9

9.5

15yrs to 20- yrs

15

15.8

20yrs +

6

6.3

Post

Sales manger

20

21.1

Marketing manager

25

26.3

Quality manager

14

14.7

other

36

37.9

Experience in recent job

Less than 5yrs

47

49.5

5yrs to 10- yrs

27

28.4

10 yrs to 15- yrs

9

9.5

15 yrs +

12

12.6

Level

Top management

8

8.4

Middle management

72

75.8

Low management

15

15.8

Total

 

95

100.0

Table 2: Means and standard deviations for the role of study domains and its effect on the market share.


Degree

SD

M

Domain

Rank

High

0.49

4.36

Competitive insight

1

High

0.36

4.10

Market insight

3

High

0.51

3.96

Positioning

3

Instrument validity

Validity was established through content and face validity, and the instrument was standardized on the response of an experts group of in Jordanian universities. The ratters cancelled items and modified other items. The researcher modified the tool as mentioned by the ratters [8-13].

Instrument reliability

Reliability of the instrument was determined through a pilot study; sample of 20 respondents from of the study population. The reliability coefficient was (0.84) for marketing information systems and (0.85) for the tool as a whole, and it seemed to be reliable for use a Jordanian population [14,15].

Statistical measures

Data was processed through SPSS software by coding the variables in a clear way as well as recording each variable and its symbol as in the list. Then data were processed in the computer according to certain measures such as reliability measures, simple regression, F-test, correlation coefficient, ANOVA and multiple regressions. Then data were processed in the computer according to the following method: 1-2.49 presenting weak positive degree, 2.5 – 3.49 average positive degree and 3.5-5.00 high positive degrees.



Study Findings

The first question: What is the effect of marketing intelligence on the market share of Jordanian commercial banks?

To answer this question means and standard deviations were calculated for al domains as follows:

Means and standard deviations for the role of study domains and its effect on the market share were calculated as shown (Table 2).

Table 2 shows that the means of study domains ranged between (4.36-3.96) showing high positive effect on market share. Competitive insight came in the first rank with a mean of (4.36) while positioning came in the last rank but in a high positive degree. For the relationship between marketing intelligence and market share the researcher used the simple regression to calculate this relationship as shown in the following tables (Table 3-6).

Table 3: Simple regression analysis for the effect of competitive insight on the market share of Jordanian commercial banks.

 

R

R2

Beta

F

Sig.

Total market share

.371

.138

.371

13.904

.000

Share of served market

.570

.325

.570

41.862

.000

Relative market share

.039

.002

-.039

.135

.714

Table 4: Simple regression analysis for the effect of market insight on the market share of Jordanian commercial banks.

 

R

R2

Beta

F

Sig.

Total market share

.309

.095

.309

9.167

.003

Share of served market

.278

.077

.278

7.288

.008

Relative market share

.022

.000

.022

.041

.840

Table 5: Simple regression analysis for the effect of positioning on the market share of Jordanian commercial banks.

 

R

R2

Beta

F

Sig.

Total market share

.484

.235

.484

26.655

.000

Share of served market

.081

.007

-.081

.572

.452

Relative market share

.110

.012

.110

1.058

.306

Table 6:  Pearson coefficient of the relationship between marketing intelligence and the market share.

 

 

Total market share

Share of served market

Relative market share

Competitive insight

R

.371**

.570**

-.039

 

Sig

.000

.000

.714

 

No

95

95

95

Market Insight

R

.309**

.278**

.022

 

Sig

.003

.008

.840

 

No

95

95

95

Positioning

R

.484**

-.081

.110

 

Sig

.000

.452

.306

 

No

95

95

95



The second question: Are there any significant statistical differences between the market share and demographic variables (gender, age, educational level, experience and post)?

To answer this question means, standard deviation and (t) test were used for the relationship between gender, age, experience, and post and market share (Table 7-12).

Table (12) shows that there were significant statistical difference at the level of (? < 0.05) attributed to years of experience between 1 to less than 5 years in favor of the first and 5 to less than 10 years in favour of 1 to less than 5 years. Moreover, there were differences between 5 to less than 10 years and 15 to less than 20 years in favour of the latter. There were differences between 15 to less than 20 years and more than 20 years in favour of the latter, and for 20 years and more in the total market share. There were significant statistical difference at the level of (? < 0.05) between 1 to less than five years and 15 to less than 20 years in favor of the first and between 5 to less than 10 years and 15 to less than 20 years in favour of the first and the differences were in favor of 5 to less than 10 years in the favour of the server market share. With regard to the relative market share the differences were too low and insignificant (Table 13).

Table 7:  Means, standard deviation and (t) test were used for the relationship between gender and market share.

 

gender

M

SD

T

F

Sig

Total market share

male

3.90

.638

-2.156

87

.034

Female

4.13

.344

 

 

 

Share of served market

male

4.15

.496

.234

87

.816

Female

4.13

.458

 

 

 

Relative market share

male

4.30

.265

1.351

87

.180

Female

4.19

.419

 

 

 



Table 8: Means, standard deviation were used for the relationship between age and market share.

 

Age

M

SD

Total market share

20 to 30-yrs

4.03

.556

30yrs to 40-yrs

4.30

.240

40 yrs to 50-yrs

4.04

.491

Share of served market

20 to 30-yrs

4.19

.469

30yrs to 40-yrs

4.16

.513

40 yrs to 50-yrs

3.91

.357

Relative market share

20 to 30-yrs

4.19

.370

30yrs to 40-yrs

4.18

.398

40 yrs to 50-yrs

4.46

.217



Table 9: ANOVA analysis for the effect of age in market share.

 

Source

Cq

T

M

F

Sig

Total market share

between groups

1.335

2

.667

2.890

.061

In groups

19.859

86

.231

 

 

total

21.194

88

 

 

 

Share of served market

between groups

.906

2

.453

2.094

.129

In groups

18.601

86

.216

 

 

total

19.507

88

 

 

 

Relative market share

between groups

.911

2

.456

3.554

.033

In groups

11.023

86

.128

 

 

total

11.934

88

 

 

 



Table 10:  Means, standard deviation were used for the relationship between gender and market share.

 

Age

M

SD

Total market share

Diploma

4.13

.306

undergraduate

3.98

.554

graduate

4.19

.326

Total

 

4.04

.491

Share of served market

Diploma

4.14

.679

undergraduate

4.10

.372

graduate

4.29

.548

Total

 

4.14

.471

Relative market share

Diploma

4.14

.350

undergraduate

4.22

.386

graduate

4.43

.236

Total

 

4.23

.368


Table 11: ANOVA analysis for the effect of educational level in market share.

 

Source

Cq

T

M

F

Sig

Total market share

between groups

.611

2

.305

1.276

.284

In groups

20.583

86

.239

 

 

total

21.194

88

 

 

 

Share of served market

between groups

.330

2

.165

.739

.480

In groups

19.177

86

.223

 

 

total

19.507

88

 

 

 

Relative market share

between groups

.615

2

.307

2.335

.103

In groups

11.319

86

.132

 

 

 

total

 

 

 

 

 




Table 12:  Means, standard deviation were used for the relationship between experience and market share.

 

Age

M

SD

Total market share

1 to 5-yrs

4.18

.249

5yrs to 10- yrs

3.76

.671

10 yrs to 15-yrs

3.79

.348

 

15yrs to 20- yrs

4.25

.200

 

20yrs +

4.50

.000

Total

 

4.04

.491

Share of served market

1 to 5-yrs

4.30

.452

5yrs to 10- yrs

4.20

.468

10 yrs to 15-yrs

3.95

.635

 

15yrs to 20- yrs

3.80

.304

 

20yrs +

4.14

.000

Total

 

4.14

.471

Relative market share

1 to 5-yrs

4.23

.374

5yrs to 10- yrs

4.14

.401

10 yrs to 15-yrs

4.43

.247

 

15yrs to 20- yrs

4.17

.329

 

20yrs +

4.57

.000

Total

 

4.23

.368


Table 13: Means, standard deviation were used for the relationship between post and market share.

 

Age

M

SD

Total market share

Sales manger

3.88

.402

Marketing manager

4.00

.469

Quality manager

3.62

.739

 

other

4.28

.214

Total

 

4.04

.491

Share of served market

Sales manger

4.14

.422

Marketing manager

4.11

.544

Quality manager

3.92

.717

 

other

4.24

.246

Total

 

4.14

.471

Relative market share

Sales manger

4.21

.441

Marketing manager

4.25

.405

Quality manager

4.07

.175

 

other

4.29

.365

Total

 

4.23

.368

Table (13) shows that there were significant statistical difference at the level of (? < 0.05) attributed to post between sales manager and other category in favor of sales manager, and between marketing manager and quality manager in favor of marketing manager as well as quality manager and other category in favour of other category [16-19].


Discussion

Based on the findings it was evident that there is a positive effect ranged from weak to strong between marketing intelligence system and the share of the server market. The researcher found that the commercial banks use marketing intelligence system in a high degree through using the policy of market insight and competitive strategies to set their marketing plans as well as determining threats and strength points through information analysis. Additionally, the role of market intelligence in analysing the internal and external marketing information to know the needs of customers or the market. Moreover, the efficiency of supporting systems to enhance marketing decisions. Also, there were no significant statistical differences between marketing intelligence systems and relative market share. This can be attributed to the actions of the banks that refuse any non-profitable customers in the local market and directing its efforts for the business market or external only. This result is consistent with the study which concluded that there are no marketing plans in Jordan and Italy as the internet is more efficient to improve marketing performance in both countries. The findings showed that there is an average positive effect between marketing intelligence systems and the total market share which is attributed to the strong relationship between both variables. Furthermore, the role of effective marketing efforts carried out by some banks in findings new marketing directions in order to win more customers and improve the services through marketing studies and surveys to investigate their opinions and attitudes. The findings showed different correlation degrees ranged between strong and weak for the effect of using marketing intelligence as an independent variable and market share as a dependent variable. Those differences can be attributed to the variance in the roles of marketing information systems in affecting the market share and its effective roles in planning, analysis and linking between marketing operations to affect the market positively.


Recommendations

Based on the findings of this study the researcher recommends the following:

·    There is a need to follow up changes in the marketing environment during the targeted marketing process in order to ensure that they increase or at least maintain their market share. To this end, the banks could adopt Porter strategies.

·   Calling on the banks of this study to analyse the stored information in their databases to determine threats and strength points to make fruitful plans and initiate positive relationships with different markets.

·   Calling on the banks of this study to make plans to link threats and opportunities in the marketing systems with environment survey to develop marketing opportunities.

·     Continuous promotion on both individual and business levels and offering competitive prices and services.

·     Conducting more studies regarding marketing intelligence systems with other marketing variables.


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