The Impact of Marketing Intelligence on the Market Share of the Jordanian 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:

• 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.

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?

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.

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.

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.

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