Article Type : Research Article
Authors : Ismaeel B and Alzubi MM
Keywords : Marketing intelligence; Market share; Jordan; Commercial banks
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.
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.
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.
The objectives of the current study are as follows:
The current study seeks to answer the following research questions:
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].
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.
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 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 |
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.
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.