Abstract
This study investigates the influence of Marketing Intelligence on Business Competitive Advantage:
A study of Diamond Bank Plc, Nigeria. Five objectives were identified and translated
into five research questions which aptly answered by subjecting them to a test of hypotheses. A
Descriptive research was used to survey 292 members of the staff of Diamond Bank in Lagos,
Central Regional branches and head office. Out of which 285 responses were obtained, while 6
responses were destroyed because they were not properly filled. Also, data was collected through
a self-administered questionnaire, as Pearson correlation, T-test and Regression were used to test
the hypotheses statements. However, the result of the findings revealed that marketing intelligence
sub-constructs such as internal records, competitor’s sales data, marketplace opportunity,
competitors’ threats and competitors’ risks have significant and positive influence on business
competitive advantage. Thus, it can be concluded that marketing intelligence as sensitive information
has enabled the bank to successfully acquire more profit, expand the branch network all
over the country, perform better than its rivals in the market and increase its business competitive
advantage.
Keywords: Marketing Intelligence, Business Competitive Advantage, Internal Records, Competitor’s Sales Data,
Marketplace Opportunity, Competitors’ Threats, Competitors’ Risks.
JEL Classification: L14, L25, M31, M38
1. INTRODUCTION
Today, the wave of the changes in the business world is developing, in which no doubt the
marketing intelligence is its base. Organizations are confronted with different environmental
changes. These changes take place so fast that, if organizations do not prepare themselves, their
survival will be in danger. Marketing intelligence is to prevent the astonishments and the employees’
inability against environmental changes and to reduce and minimize the company’s
exposure to danger (Johns & Van Doren, 2010). A new apparatus which helps the organizations
to reach a suitable place in today’s environment is the use of marketing intelligence. The concept
of intelligence is marketing information that is considered as an ongoing effort to increase the
competitive ability of the strategic programming processes. Marketing intelligence is the systematic
collection and analysis of publicly available information about consumers, competitors, and
developments in the marketplace (Kotler & Armstrong, 2013).
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Vol. 9, Issue 1, p���������p. 51 – 7��������������1, March 2017�
ISSN 1804-171X (Print), ISSN 1804-1728 (On-line), DOI: 10.7441/joc.2017.01.04
Journal of Competitiveness
52 Journal of Competitiveness
Igbaekemen(2014) noted that, successful companies take an outside-inside view of their business.
He recognize that marketing environment is constantly presenting new opportunities and
threats, which can only be detected, collected, analyzed and utilized through the use of marketing
intelligence and likewise an ‘organization’ should understand the importance of continuously
monitoring and adapting to that environment. Many organizations fail to see change as opportunity.
They ignore or resist changes until it is too late. Their strategies, structures, systems and
organizational cultures grow increasingly obsolete and dysfunctional.
(Igbaekemen, 2014) added that many factors have increased the need for more and better marketing
intelligence as companies become national and international in scope, they need more
information on larger, more distant markets as income increases and buyers become more selective
Therefore, marketing intelligence is important since the quality of the marketing information
affects the effectiveness of decision making in the banking sector, there is always a rivalry
among the various players in the banking sector, and each bank needs to device means of existing,
sustaining and becoming a mega force to be reckoned with in this sector. This research will
provide better information for organizations, particularly banking industry in Nigeria, about
how customers pay interest in their variety of products, appeals, cost data, market data and
competitor’s sales.
2. OBJECTIVE OF THE STUDY
The major objective of this research is to examine the influence of marketing intelligence on
business competitive advantage. However, minor objectives of this study are as follows:
To determine the relationship between internal record and business competitive advantage.
To investigate the relationship between competitor’s sales data and business competitive
advantage.
To examine whether marketplace opportunity influences business competitive advantage.
To determine whether competitor’s threat influences business competitive advantage.
To investigate whether competitive risk influences business competitive advantage.
3. RESEARCH QUESTIONS
What is the relationship between internal record and business competitive advantage?
What is the relationship between competitor’s sales data and business competitive advantage?
Does marketplace opportunity influence business competitive advantage?
Will competitor’s threat influence business competitive advantage?
Does competitive risk influence business competitive advantage?

4. RESEARCH HYPOTHESES
This is a statement proposing the directionality of relationship between marketing intelligence
and business competitive advantage. It is a tentative statement that is subjective to verification.
Thus, the hypotheses for this research work are as follows:
H01: There is no significant relationship between internal record and business competitive
advantage.
H02: There is no significant relationship between competitor’s sales data and business
competitive advantage.
H03: Marketplace opportunity does not significantly influence business competitive advantage.
H04: Competitor’s threat does not significantly influence business competitive advantage.
H05: Competitive risk does not significantly influence business competitive advantage.
5. LITERATURE REVIEW
5.1 Theoretical Framework
The theoretical underpinnings of this study are schema theory, congruence theory and resources
based view theory. The first theory discussed in this paper is a schema theory which is based on
the idea that humans use a categorical approach to organize and structure information contained
in memory. A schema is an “abstract or generic knowledge structure, stored in memory that
specifies the defining features and relevant attributes of some stimulus domain, and the interrelations
among these attributes” (Crocker, 1984). Schemas can be developed through exposure
to or experience of a stimulus domain (e.g., a situation, person, or object) and are believed to
guide perception, thought and action of consumers in subsequent instances (Speck, et al. 1988;
McDaniel 1999). From the marketing intelligence perspective, schema and congruence theory
aid the thorough, categorizing and systematic collection of vital information that is likely useful
for the organisation from the customers as well as the competitors. This information is centered
on various reasons relating to organization, product, price, promotion and distribution.
However, the congruence of information will foster the category under which information with
similar facts should be put. This is based on similarities, relevance and importance of information.
Meanwhile, the new information collected from customers and competitors may be similar
to the existing information. Therefore, in order to incorporate the schema information into
organisation data base, information congruence is an appropriate approach to categorize information
for effective decision, action, and assimilation or to serve as alternative if the information
is severe.
Also, resources-based view is the second theory discussed in this paper, which explains how marketing
intelligence as information could serve as resources to an organization. Ray et al (2004)
distinguished between tangible and intangible resources and posited that intangible resources
such as information are often the most important ones from a strategic point of view. They argue
that intangible resources are more likely to be a source of sustained competitive advantage
54 Journal of Competitiveness
rather than tangible ones. Priem and Butler (2003) confirmed that one of the most influential
articles ever published is Wernerfelt’s 1984 contribution entitled ‘A Resource-Based View of the
Firm’. In addition to Porter’s concept of five forces in designing strategy (Porter 1980), the article
opens ground for various strategy writers towards sustainable competitive edge, as the aim
of many organizations. Therefore, as managers strive to gain competitive edge, an environment
where organizational optimum performance can be increased should be arranged.
5.2 Empirical Review
The growth of internet has prompted online marketing intelligence activities; this was explained
according to Alamsyah, Rahmahand Irawan (2015) to determine sentiment analysis based on
appraisal theory for marketing intelligence in Indonesia’s mobile phone market using Bahasa
Indonesia to compare positive and negative sentiments of popular smart phone products in Indonesia,
which are Lumia and Xperia. After the calculation was performed based on target and
appraisal related in sentences and tweets levels, the results reveal that Lumia have more positive
results than Xperia.
Also, the study conducted by Freihat (2012) reveals the relationship between the major components
of marketing information system, and the decision-making in Jordanian shareholding
medicines production companies. In the study, 56 marketing managers and marketing information
system working staff were selected from 7 companies. The finding reveals that there is
a statistically significant relationship between internal records, marketing research, marketing
intelligence and decision-making. Therefore, the study suggested that, regular and continuous
training programs in and out of the company must be conducted for the marketing information
system companies employees in the areas of collecting, processing and manipulating of data, in
order to benefit from the experiences of others, exchange of experiences, expand their knowledge,
and increase their competences in the performance of their jobs.
Similarly, Alhadid, Al-Zu’biand Samer (2015) in their study conducted to investigate the relationship
between marketing the information system and gaining competitive advantage in the
banking sector in Jordan. Secondary data was obtained from documented sources and primary
data from the use of a questionnaire. The results of the analysis showed that there is a relationship
between the major components of marketing information system like internal records,
marketing research, and marketing intelligence towards achieving a competitive advantage in
the Jordan Banking sector. The results also indicated that only two traits; age and educational
level, had a relationship with marketing information system. However, there was no significant
relationship between gender, experience years of respondents and their perceptions of marketing
information system. Therefore, marketing intelligence explores the usefulness of the use of
information technology in achieving competitive advantage.
According to Venter and Rensburg (2014) in their study conducted to determine the relationship
between marketing intelligence and strategic marketing in South African organizations. In the
study, a quantitative survey was used among 166 South African marketing decision-makers. The
finding shows that the availability of various categories of marketing intelligence has an indirect
effect on strategic marketing.
55
Igbaekemen (2014) investigates the influence of marketing intelligence as a strategic tool in
achieving or attaining competitive edge’. In the study, the problems of competition was addressed,
marketing intelligence and the adoption of suitable marketing intelligence system for an
organization becomes imperative. The impact of competition in the business environment has
compelled many organizations to turn around and start scanning the environment for information,
so as to have competitive edge over other similar organization within the industry.
Hakkak and Ghodsi (2015) in their research conducted to introduce competitive advantage as
well as to assess the impacts of the balanced scorecard as a means to measure the performance
of organizations. 120 employees of the organizations affiliated to the social security department
in North Khorasan Province were selected as the participants in the research. And the results
indicated that there is a significant and positive impact of the implementation of the balanced
scorecard on the sustainable competitive advantage. Therefore, the organizations should show a
high level of significance and sensitivity toward their clients and customers so that they will be
satisfied and have a good interaction with the organization.
5.3 Conceptual Framework
5.3.1 Concept of Marketing Intelligence
Marketing intelligence as Igbaekemen(2014) explained is everyday information about development
in the marketing environment that helps managers prepare and adjust marketing plans.
The marketing intelligence system determines the intelligence needed and collecting same by
searching the environment and deliver to the marketing manager who needs it. Marketing intelligence
comes from diverse sources such as: the company’s personnel executives, engineers
and scientist, purchasing agents and the sales force. But, company people are often busy and
fail to pass on important function. The Company must sell its people on their importance as
intelligence gathers, to spot new development and urge them to report intelligence back to the
organization. Sometimes, in wide networking companies, the intelligence information is usually
contracted to external agents or suppliers and at the extreme level ‘hidden hackers’ to break
and capture for the company all relevant information from their competitors for their effective
utilization. However, marketing intelligence as an organizational strategy can perfectly work for
a company as well against the company. Therefore, organizations must act fast and take every
necessary step towards protecting themselves from the snooping of competitors.
5.3.2 Internal Records
Internal records is an aspect of marketing intelligence that handle information about an organization
operation system, sales data, core competence and other strategies which include
their strength, weakness, opportunities and threat. Internal records are the data collected and
stored in a database which pertains to daily marketing activities. The information technological
changes are stored in a company’s database and only the assigned member of the internal
control unit has the relevant access to such information based on its sensitivity. The term ‘database’
as an internal record contains information about prospective customers which stored in
a computer with software to process the information. A significant technological innovation is
database marketing, the collection and use of individual customer- specific information to make
marketing more efficient. Computer technology provides the ability to pull apart and recombine
56 Journal of Competitiveness
information in ways previously impossible but which presently permit the company to identify
customers who are more predisposed to their products and to whom they can direct their marketing
efforts. This, however, is one of the objectives of marketing intelligence (Igbaekemen,
2014). It helps in planning so as to minimize the risk of uncertainty about the future. Marketers
use marketing intelligence for gathering and evaluating internal and external data during
processing phase, which later are used for evaluation through a management tool called SWOT
Analysis (Tan & Ahmad, 1999).Therefore, banks or organizations that are able to secure their
database from getting hacked by external agents or competitors and work on their information
effectively will have competitive edge over others in the same industry that are unable to secure
their internal records in a proper way. The competitive edge in this regard, enables results to be
higher in one company than another, in such areas as productivity, profitability, market share
and effectiveness, for a given firm competing in the same industry.
5.3.3 Competitors’ Sales Data
Competitor’s sales data is another component of marketing intelligence which could also influence
the competitive edge of an organization over another. Sales data is very sensitive as the
information can create competitions in the market settings. Sales data serve as a guide to firms
in identifying their strength towards increasing their sales volume in the market; it also helps to
identify weaknesses in some parts of the market where an adjustment is needed to be made. In a
segmented market where the market is saturated with many competitors, an organization needs
to access their sales data on day-to-day basis in order to boost their sales over their competitors
in the market. The example of Big-Cola in Nigerian market that came with a larger quantity of
cola drinks under which increase in their sales record were used as a strategy to strengthen up
and improve management confidence, through market segmentation to take over the market as
other competitors pretended not to have been sleeping. Meanwhile, competitors’ sales data as a
sensitive information could trigger or gear up the market competitors to stand on their toes and
act as fast as possible before their market will be taking from them. Many organizations keep
their sales information safe only for them to build their strength on, while on the other hand,
this information could be useful for the competing firms to know how their rivals are doing in
order for them to take the right strategy to outwit them in the market. However, competitor’s
sales data is information that covers sales records of a firm on a routine basis in a competitive
market. Such information is stored in the organization database which has been recorded by
salespeople on their devices from the field to keep the company’s sales transactions as well as
their competitors. Therefore, any bank or firm in the market settings that is able to identify this
gap and make an effective use of it as an opportunity will have a competitive edge over others in
the market which will tend to increase sales volume, market share, organizational profitability,
productivity and effectiveness.
5.2.4 Marketplace Opportunity
A marketplace opportunity according to Nwokah and Onduku (2009) is a strategy which is concerned
with creating and realizing new market place opportunities. Opportunities define new
ways of creating and developing value for customers: new products or solutions; extending existing
product lines, reconfiguring existing solutions. Also, Fahey (2007) noted that “the executive
team continuously addresses two types of new marketing opportunities:
57
Extending current opportunities: How can we extend opportunities that are the focus
of our current strategy?
Potential marketplace opportunities: What opportunities beyond the reach of our current
strategy should we be considering? What opportunities may be lurking but not yet fully
evident in market place change?”
Under the first opportunity as indicated above, short-term opportunities often centre on identifying
ways to modify the current strategy to add value for customers (Fahey, 2007). He added
using three industries as an example to highlight how intelligence created assessments leading
to new opportunities to extend and leverage the current strategy two key exchanges must occur
between strategy and intelligence professionals: First, the executive team must ‘challenge’ the
intelligence team to identify and develop the contours of new opportunities. Second, the intelligence
team must demonstrate that it is fully committed to learning about the firm’s strategy.
However, Nwokah and Onduku (2009) explained these exchanges as the framework for identifying
and shaping the extension of current opportunities under the first strategy, and the second
strategy input is the potential market place opportunities. He added that the executive team
needs to develop strategy where possible, that will be a winner strategy for the future.
5.3.5 Competitors’ Threat
In threats, opportunities would be much easier to realize where it is not for the presence of current
and potential competitors. Fahey (2007) identified competitors’ threats as “ways that a rival
can inhibit a company’s strategy from succeeding in the market place”. Nwokah and Onduku
(2009) added that “if threats are lately detected, resources tied up in supporting a strategy may
be substantially wasted, as strategy can be adapted to eliminate, ameliorate or avoid the threat”.
They, therefore, stated the following questions that the executives should pose:
“How might competitors most adversely affect our current strategy?
Which competitors are most likely to do so?
How might we best ‘handle’ these threats?”
This shows how effective information could serve in an organization’s current and future plan.
Every organization that sees the future from today and plays away the threat from the competitors
in the market settings will have a competitive edge over others. The marketing intelligence
unit must, therefore, assess current and potential competitor change for its strategy implications
for threats. And also, the executive team must be alerted to current or potential competitors’
threats (Nwokah and Onduku, 2009).
5.3.6 Competitive Risk
Competitive risk as a component of marketing intelligence is a strategy, and strategy is played over
time in a marketplace or competitive context that extends even beyond competitors. “Change
in and around the market place (being driven by customers, channels, suppliers, governmental
agencies, technology houses, political parties, etc.) is the source not only of marketing opportunities
and competitors’ threats but of competitive risks” (Nwokah and Onduku, 2009). The
competitive risks include any marketplace change that could negatively affects the firm’s current

58 Journal of Competitiveness
or potential strategy” (Fahey, 2007). Fahey, 2007 supplied the three questions an executive team
should always pose to its intelligence team under competitive risk:
“What competitive risks does our strategy face?
What competitive risks might we face in the future?
How can we best manage these risks? “
In order to provide answer to these three questions stated above which seek to compels the
intelligence team to extend their perception beyond the competitive trends, patterns and discontinuities
to isolate and assess risks and demonstrate how they negatively affects the pursuit
of specific opportunities (Nwokah and Onduku, 2009). However, one of the top priorities of an
organization is to take advantage of product quality tailored towards satisfying their customers
and the assessment of the environment. The issue of marketing intelligence is as important as
these top priorities. The negligence of information in a competitive market could endanger an
organization to fold-up unexpectedly. Competitive risk as a component of marketing intelligence
needs more attention which required intelligence specialist to handle. Most successful organizations
in the competitive market valued the power and opportunities behind information either
for current or future purposes. These firms frequently assess their strategies, environments and
changes in technology. Any organization that failed to do this will experience a negative effect
of its current or potential strategy on the organization performance. Therefore, competitive risk
as an important aspect of marketing intelligence is a strategy which every organization competing
in the local or global market should take into consideration based on its influence in gaining
competitive advantage towards achieving an organization’s long term objective and survival in
the marketplace.
5.3.7 Business Competitive Advantage
Business competitive advantage explains the core strategy or unique resources by which an organization
sources and utilizes the same to achieve better results than the competitors in the
marketplace. According to Chern, Anthony and Chih-Ping (2014) in Igbaekemen (2014), firms
competing in a given target market, at any point in time, differ in their objectives and resources,
others are strapped for funds, some are old and established while others are new and fresh, some
strive for rapid market share growth, while others strive for long term profits. He further stated
that firms occupy different competitive position in the target market. In this study, the business
competitive strategies adopted in Nigerian banking industry to which Diamond Bank belongs
will be evaluated. This is based on the roles firms in this industry play in the target market which
includes; leading, following or niching and challenging. However, every industry market leader is
the firm in the industry with the largest market share. It usually leads other firms in price changes,
new product introduction, distribution coverage and promotion spending. Market leaders
use several defense strategies of maintaining their position and prevent followers or challengers
from talking over, such as; defense, pre-empire defense, counter offensive, mobile defense and
contraction defense. The market leader dictates the price and other market activities, while market
challenger is a runner-up firm in an industry that is fighting hard to increase its market share.
Also, a market follower is a runner-up firm in the industry that wants to hold its share without
rocking the boat, as market nicher is a firm in an industry that serves small segments that other
1.
2.
3.
59
firms overlook or ignore. Competitive advantage can be reflected in overall core competence in
essential marketing function.
5.4 Conceptual Model
In light of the foregoing, the study uses the model below to provide a further insight as to the
web of relationships between marketing intelligence and business competitive advantage.
Fig. 1 – Model of Marketing Intelligence and Business Competitive Edge. Source: Conceptualized by the Researcher,
2016
Figure 1 above shows the relationship between marketing intelligence and business competitive
advantage. The implication of the model as represented in the figure is that a web of relationship
exists among the components of marketing intelligence previously explained above like internal
record, competitors sales data, marketplace opportunity, competitors threat, and competitive
risk, on business competitive advantage like profitability, sales turnover, market share, productivity
and effectiveness.
6. RESEARCH METHODOLOGY
6.1 Research Design
A descriptive research design using cross-sectional survey method was adopted for a use in
this study. A descriptive research design involves the field enquiries by collecting data using
questionnaire or interview from the target population at a period of time. Therefore, the design
was considered as the most appropriate for this study because the variables of the research are
purely descriptive and can only be examined through primary data collection. The data generated
were then analyzed along with the research hypotheses leading to appropriate inferences
and generalizations.
6.2 Sampling and Data Collection Procedure
The data collection which was facilitated through the cross-sectional survey made use of a structured
questionnaire administered to 1,081 population of Diamond Bank staff in Lagos Central
Regional branches and Lagos Victoria Island headquarter. Using Yamane (1967) formula, a total
Business Competitive
Edge
􀀃
Marketing
Intelligence
Business
Competitive
Advantage
Internal Records
Competitors’ Sale Data
Marketplace Opportunity
Competitors’ Threat
Competitive Risk
60 Journal of Competitiveness
sample size of 292 was adopted and Bowley (1926) proportional allocation formula was used to
ensure that the sample represent the appropriate unit regardless of their population size. Therefore,
a stratified random sampling technique was used to divide the sample size into twelve
homogenous groups according to the branches and the head office.
6.3 Study Instruments
A research instrument is a device for collecting relevant data or measuring the variables which
are used for answering research question and/or testing study hypothesis (Dixon-Ogbechi,
2002). The study made use of a structured and self-administered questionnaire. The questionnaire
was divided into two sections. The first section was developed based on the objective of
the research, while the second section captures demographic characteristics of the respondents,
such as sex, age, position, experience and highest academic qualifications. Also, a pilot study was
conducted to test the accuracy and the consistency of the research instrument. For the purpose
of the study, a data collection instrument was subjected to content, construct and face validity;
the result of the reliability test (in variables) obtained from the SPSS following a pilot study is
presented in the table below.
Tab. 1 – Reliability Test of Variables (Source: Pilot Study, 2016)
No Variables N Items Cronbach Alpha
1 Internal Record 40 6 .971
2 Competitor’s Sale Data 40 5 .952
3 Marketplace Opportunity 40 6 .972
4 Competitive Threat 40 6 .851
5 Competitive Risk 40 5 .929
6 Business Competitive Advantage 40 6 .922
As shown in the Table 3, internal record as the first variable with 6 items reveals Cronbach
alpha coefficient of 0.971 (N = 40), competitor’s sales data with 5 items measures 0.952 (N =
40), marketplace opportunity with 6 items measures 0.972 (N = 40), competitive threat with 6
items measures 0.851 (N = 40), competitive risk with 5 items measures 0.929 (N = 40), while
the dependent variable business competitive advantage with 6 items measures 0.922 (N = 40).
However, as explained in the work of Pallant (2001) when a Cronbach alpha coefficient value is
above 0.7, the scale is reliable and/or has a reliable internal consistency. Therefore, all the scale
items of the above six variables are strongly reliable and acceptable.
6.4 Procedure for Data Analyses
Data were statistically analyzed after being collected from the field. The descriptive statistics was
used for the analysis. The data generated from the field of study will be presented with simple
tables and for the purpose of the data analysis; both descriptive and inferential statistical techniques
were used. The frequency distribution and percentage were used to describe the aspect of
the data, where all the data will be presented in forms of tabulation, frequency and percentages.
In addition to this, hypotheses were tested through the Pearson Correlation and Multiple Re61
gression Analysis as the main statistical tools that explained the relationship between variables
under parametric test.
7. DATA ANALYSIS
The results of the data analyzed for the study were presented on the basis of the hypotheses
generated for the study.
Hypothesis One
H01: There is no significant relationship between internal record and business competitive
advantage.
Tab. 2 – Relationship between Internal Records and Business Competitive Advantage. Source:
Research Study, 2016
Correlations
SPSS Output Internal Records
Business Competitive
Advantage
Internal Records
Pearson Correlation 1 .968**
Sig. (2-tailed) .000
N 279 279
Business Competitive
Advantage
Pearson Correlation .968** 1
Sig. (2-tailed) .000
N 279 279
**. Correlation is significant at 0.05 level (2-tailed).
The table showed the result of the hypothesis stated above. To test the hypothesis, the Pearson
correlation coefficient was carried out to show the relationship between internal records and
business competitive advantage. The relationship between the two variables produced a positive
correlation coefficient of 0.968** which depicted a strong direct correlation between internal
records and business competitive advantage. Also, the two-tailed test conducted to check the
significance level of the value of correlation coefficient yields a P-value of 0.000 which was
significant at 0.05 level. Therefore, the hypothesis that states there is no significant relationship
between internal record and business competitive advantage was rejected, as the result implied
that internal record was significantly related to business competitive advantage.
Hypothesis Two
H02: There is no significant relationship between competitors’ sales data and business competitive
advantage.
62 Journal of Competitiveness
Tab. 3 – Relationship between Competitors’ Sales Data and Business Competitive Advantage.
Source:Research Study, 2016
Correlations
SPSS Output
Competitors’
Sales Data
Business Competitive
Advantage
Competitors’ Sales Data
Pearson Correlation 1 .975**
Sig. (2-tailed) .000
N 279 279
Business Competitive
Advantage
Pearson Correlation .975** 1
Sig. (2-tailed) .000
N 279 279
**. Correlation is significant at 0.05 level (2-tailed).
The table showed the result of the hypothesis stated above. To test the hypothesis, the Pearson
correlation coefficient was done to show the relationship between competitors’ sales data and
business competitive advantage. The relationship between the two variables produced a positive
correlation coefficient of 0.975** which depicts a strong direct correlation between competitors’
sales data and business competitive advantage. Also, the two-tailed test conducted to check
the significance level of the value of correlation coefficient yields a P-value of 0.000 which was
significant at 0.05 level. Therefore, the hypothesis that states there is no significant relationship
between competitors’ sales data and business competitive advantage was rejected, as the result
implies that competitors’ sales data is significantly related to business competitive advantage.
Hypothesis Three
H03: Marketplace opportunity does not significantly influence business competitive advantage.
Tab. 4 – Relationship between Marketplace Opportunity and Business Competitive Advantage.
Source: Research Study, 2016
Correlations
SPSS Output Marketplace Opportunity
Business Competitive
Advantage
Marketplace
Opportunity
Pearson Correlation 1 .965**
Sig. (2-tailed) .000
N 279 279
Business
Competitive
Advantage
Pearson Correlation .965** 1
Sig. (2-tailed) .000
N 279 279
**. Correlation is significant at 0.05 level (2-tailed).
63
The table showed the result of the hypothesis stated above. To test the hypothesis, the Pearson
correlation coefficient was carried out to show the influence of marketplace opportunity on
business competitive advantage. The relationship between the two variables produced a positive
correlation coefficient of 0.965** which depicts a strong direct correlation between marketplace
opportunity and business competitive advantage. Also, the two tailed test conducted to check
for the significance level of the value of correlation coefficient yields a P-value of 0.000 which
was significant at 0.05 levels. Therefore, the hypothesis that, marketplace opportunity does not
influence business competitive advantage was rejected, as the result implies that marketplace
opportunity has significant influence on business competitive advantage.
Hypothesis Four
H04: Competitor’s threat does not significantly influence business competitive advantage.
Tab. 5 – Relationship between Competitors’ Threat and Business Competitive Advantage.
Source: Research Study, 2016
Correlations
SPSS Output Competitors’ Threat
Business Competitive
Advantage
Competitors’
Threat
Pearson Correlation 1 .977 **
Sig. (2-tailed) .000
N 279 279
Business
Competitive
Advantage
Pearson Correlation .977 ** 1
Sig. (2-tailed) .000
N 279 279
**. Correlation is significant at 0.05 level (2-tailed).
The above hypothesis was tested by the Pearson Product Moment correlation statistical tool.
On this note, the relationship between two variables (competitors’ threat and business competitive
advantage) was found to be positive with a co-efficient of 0.977 a very strong relationship.
Equally, the two tailed test conducted to check for the significance level of the value of correlation
coefficient yields a P-value of 0.000 which was significant at 0.05 levels. Therefore, the
hypothesis that states competitors’ threat does not influence business competitive advantage
was rejected, as the result implies that competitors’ threat has a significant influence on business
competitive advantage.
Hypothesis Five
H05: Competitive risk does not influence business competitive advantage.
64 Journal of Competitiveness
Tab. 6 – Relationship between Competitive Risk and Business Competitive Advantage.
Source: Research Study, 2016
Correlations
SPSS Output Competitive Risk
Business Competitive
Advantage
Competitive
Risk
Pearson Correlation 1 .959**
Sig. (2-tailed) .000
N 279 279
Business
Competitive
Advantage
Pearson Correlation .959** 1
Sig. (2-tailed) .000
N 279 279
**. Correlation is significant at 0.05 level (2-tailed).
The table showed the result of the hypothesis stated above. To test the hypothesis, the Pearson
correlation coefficient was carried out to show the influence of competitive risk on business
competitive advantage. However, the relationship between the two variables produced a positive
correlation coefficient of 0.959** which depicts a strong direct correlation between competitive
risk and business competitive advantage. Also, the two tailed test conducted to check the significance
level of the value of correlation coefficient yields a P-value of 0.000 which was significant
at 0.05 level. Therefore, the hypothesis that state competitive risk does not influence business
competitive advantage was rejected, as the result implies that competitive risk has significant
influence on business competitive advantage.
Regression Analysis
To further test each of the hypotheses formulated in the study, a multiple regression analysis was
conducted to confirm the presence of relationship between the constructs of the study. The regression
analysis can be used to forecast the values of a dependent variable given value of one or
more independent variables by calculation of a regression equation. Therefore, a general model
of the regression analysis is given below;
Y = a + β1×1 + β2×2+ β3×3+ β4×4+ β5×5
Where:
Y = Dependent Variable
a = Regression Constant
β = Beta coefficient or intercept or slope (i.e. explains the actual effect of the independent variable
on dependent variable).
Xn = The Changing Variables (i.e. x1, x2, x3, x4, x5)
65
Tab.7 – Regression Model Summary and ANOVA to Forecast Marketing Intelligence Variables
on Business Competitive Advantage. Source: Research Study, 2016
R = .981a
R Square = .963
Adjusted R Square = .962
Standard Error = .06982
Model Sum of
Squares
Df
Mean
Square
F Sig.
1 Regression 34.420 5 6.884 1412.319 .000b
Residual 1.331 273 .005
Total 35.751 278
The regression ANOVA table above shows that the observed variance accounted for by five
predictors (internal records, competitors’ sales data, marketplace opportunity, competitors’
threat and competitive risk) is 96.3%. This connotes a strong and positive relationship between
marketing intelligence and business competitive advantage which also confirm the previously
tested correlation result of five sub-constructs of marketing intelligence on business competitive
advantage. The F-ratio is statistically significant as F (5, 273) = 1,412.319, P (0.000) < 0.05. This
means that the five predictors jointly contribute to the observed change in the dependent variable
(business competitive advantage).
Tab. 8 – Coefficient Table for Marketing Intelligence and Business Competitive Advantage
Source: Research Study, 2016
Model
Unstandardized Coefficients
Standardized
Coefficients
T Sig.
B Std. Error Beta
1
(Constant) 1.763 .129 13.668 .000
Internal Records -.040 .051 -.078 -.797 .426
Competitors’ Sales
Data
.288 .044 .607 6.554 .000
Marketplace Opportunity
-.220 .046 -.496 -4.741 .000
Competitors’
Threat
.382 .061 .737 6.223 .000
Competitive Risk .216 .054 .213 4.025 .000
a. Dependent Variable: Business Competitive Advantage
Table 8 shows that four out of five predictor variables contribute significantly to business competitive
advantage. It is evident from the table that Competitors’ sales data: β = .607; t (279) =
6.554, P (.000) < 0.05; Marketplace opportunity: β = -.496; t (279) = -4.741, P (.000) < 0.05;
66 Journal of Competitiveness
Competitors’ threat: β = .737; t (279) = 6.223, P (.000) < 0.05 and Competitive risk: β = .213; t
(279) = 4.025, P (.000) < 0.05 contributes more significantly to business competitive advantage.
However, internal records: β = .078; t (279) = -0.797, P (.000) < 0.05 were not significant. This
implies that for every unit change in business competitive advantage, there is a corresponding
increase of .607, .737 and .213 from competitors’ sales data, competitors’ threat and competitive
risk respectively, as marketplace opportunity and internal records’ inversely contributed by -.496
and -.078 respectively. Thus, from the table, the regression equation is given below:
BCA = a + βMI
BCA = 1.76 – 0.4×1 + 0.29×2 – 0.22×3 + 0.38×4 + 0.22×5
Where:
BCA = Business Competitive Advantage
a = Regression Constant
β = Beta coefficient or interception or slope
MI = Marketing Intelligence
X1 = Internal Records
X2 = Competitors’ Sales Data
X3 = Marketplace Opportunity
X4 = Competitors’ Threat
X5 = Competitive Risk
Therefore, the summarized regression equation showed above reveals the test of relationship
between marketing intelligence (independent variable) and business competitive advantage (dependent
variable). The table reveals that there is a high level of fitness at R value of 0.981, R2
of 0.963 and F-value of 1,412.319. The R2 of 0.963 connotes that about 96.3% of the variation
in business competitive advantage can be explained by the sub-constructs of marketing intelligence,
such as internal records, competitors’ sales data, marketplace opportunity, competitors’
threat and competitive risk, while 3.7% remain unexplained by the regression model. However,
the R value of 0.981 in the table indicates that a strong and positive relationship is found between
the two variables (i.e. marketing intelligence and business competitive advantage), which also
helps to confirm the correlation results obtained from the test of the previously tested five (5)
hypotheses. Since the F-sig. (p-value) of .000 is less than α (0.05), it was found that there was a
significant influence of marketing intelligence on business competitive advantage, as the variation
explained by the regression model is not by chance.
7. DISCUSSION OF FINDINGS
With regards to the hypothesis one which states that there is no significant relationship between
internal record and business competitive advantage, the study discovered that internal record
is significantly related to business competitive advantage. This result is similar to the findings
of Freihat (2012) and Alhadid et al (2015) which reveals that there is a statistically significant
67
relationship “between internal records, marketing research, marketing intelligence and decisionmaking”.
Also, the second hypothesis which states that there is no significant relationship between competitor’s
sales data and business competitive advantage, the study found out that competitor’s
sales data is significantly related to business competitive advantage. This result is line with the
findings of Hakkak and Ghodsi (2015) which indicated that there is a significant and positive
impact of the implementation of the competitors’ sales record and balanced scorecard on the
sustainable competitive advantage.
Furthermore, with respect to the third hypothesis which states that marketplace opportunity
does not influence business competitive advantage, the result shows that a marketplace opportunity
has a significant influence on business competitive advantage. This result is corroborated
with the findings of Venter and Rensburg (2014) which revealed that the availability of marketplace
opportunity and intelligence (intelligence on customers, competitors and suppliers)
has the greatest direct effect on perception of the overall quality of marketing intelligence and
perhaps plays a mediating role, given its strong relationships with other categories of marketing
intelligence.
However, as touching the fourth hypothesis which states that competitors’ threat does not influence
business competitive advantage, the study discovered that competitors’ threat has a significant
influence on business competitive advantage. And the finding of the last hypothesis
indicates that competitive risk has significant influence on business competitive advantage,
which negates the null hypothesis which states that competitive risk does not influence business
competitive advantage. However, both competitors’ threat and competitive risk as indicated
by Nwokah and Onduku (2009) are significantly related to “customer philosophy, integrated
marketing efforts, marketing information, strategy orientation and organisations operational
efficiency in a competitive environment”.
Finally, the regression analysis shows that the observed variance accounted for by the five subconstructs
(internal records, competitors’ sales data, marketplace opportunity, competitors’
threat and competitive risk) jointly contribute to the observed change in the dependent variable
(business competitive advantage). Also, the result of the R2 of 0.963 from the findings connotes
that about 96.3% of the variation in business competitive advantage can be explained by the subconstructs
of marketing intelligence, such as internal records, competitors’ sales data, marketplace
opportunity, competitors’ threat and competitive risk, as the R value of 0.981 indicates that
a strong and positive relationship is found between the two variables (i.e. marketing intelligence
and business competitive advantage).
Therefore, since the F-sig. (p-value) of .000 is less than α (0.05), hence, a significant correlation
is found between marketing intelligence and business competitive advantage. This result is supported
in the findings of Queiroz, & Oliveira (2014) which indicated that marketing intelligence
and the systematization of information in the market settings “possess great importance for the
development of competitiveness, contributing to development of the operations and to promotion
of new business opportunities”.
68 Journal of Competitiveness
8. CONCLUSION
Marketing intelligence is considered a vital instrument for an organization that aims to survive
in the marketplace and has business competitive advantage. Thus, “marketing intelligence is the
systematic collection and analysis of publicly available information about consumers, competitors,
and developments in the marketplace” (Kotler & Armstrong, 2013). However, the purpose
and objective of this study was to establish the influence of marketing intelligence on business
competitive advantage with reference to Diamond Bank Plc. According to the result from the
findings, there is a significant relationship between all the sub-constructs of marketing intelligence,
such as internal records, competitors’ sales data, marketplace opportunity, competitors’
threat and competitive risk on business competitive advantage.
Also, the result of the multiple regression analysis reveals that 96.3% of the variation in business
competitive advantage can be explained by the sub-constructs of marketing intelligence, such
as internal records, competitors’ sales data, marketplace opportunity, competitors’ threat and
competitive risk, as the R value of 0.981 indicates that a strong and positive influence is found
between marketing intelligence and business competitive advantage. Therefore, above average
returns can be maintained if a company gains business competitive advantage over time in the
market, and all these are attributed to the amount of market information and intelligence a company
can gather, store and utilize to the best of its advantage. Such information and marketing
intelligence had enabled the bank to successfully acquire more profit, expand its branch network,
perform better than its rivals in the market and increase its competitive advantage.
9. RECOMMENDATIONS
In the light of this study, the following recommendations are made so as to help the bank to
enhance its operation and be of great value to the firms. Firstly, it is recommended that the management
of firms should thus take keen interest in safe keeping all items of information about
the operation system, sales data, core competence and other strategies including their strength,
weakness, opportunities and threat. Also, organizations should prioritize and be proactive in information
collection pertaining to daily marketing activities to best support their business at low
cost as internal record may not necessarily contribute to business competitive advantage at the
long run. Secondly, competitors’ sales data as one of the components of “marketing intelligence
represents a continuous process of understanding, analyzing, and assessing the internal and
external environments associated with competitors”(Alamsyah, Rahmah, &Irawan, 2015)and
markets at large and then using the information acquired to enhance firms thorough operations.
Thus, competitor’s sales data should serve as an instrument which reveals the competitors’ weaknesses
and encourages the firms to utilize the opportunity towards increasing the organization
performance as well as profitability. Thirdly, marketplace opportunity as a factor is important
to firms that develop strategies and intend to outwit rivals by sustaining competitive advantage.
Due to its inverse relationship with the business competitive advantage as the findings revealed,
it is recommended that firms should reduce the cost of identifying market opportunities which
may negatively contribute to business competitive advantage in the long run. This will help to
avoid excessive cost on futile strategies and increase organizational profitability. Also, firms
69
should have an avenue or programs in the organization to deliberately plan on how competitors’
threats can be neutralized, through regular and continuous scanning of the external environment
and identifying major threat that may serve as an antagonism to the company in the marketplace.
The study also recommends that firms should frequently measure or assess the risk
of competing in a particular market, under which information should be gathered and proper
market research should be conducted towards assessing the implications of competing head to
head with major competitors in the marketplace.
Finally, information is a very crucial and sensitive tool that is useful for external bodies in competitive
environment. This has caused a lot of hackers’ sleepless night and timely stress to break
and unlock organizations database in order for them to assess both the organization and their
customers’ information. Meanwhile, customers’ negligence sometimes handles their account information
and passwords with levity under un-trusted sites and gadgets which helps the hackers’
to easily assess such accounts. Therefore, firms should recruit and train specialists in information
technology (IT) popularly known as anti-hackers or hack gurus to protect their internal database
from getting hacked, whilst customers should as well base the assessment of their accounts and
information on reliable gadgets and software such as Apple Mac Cloud, Google Drive, Kaspersky
and others to run their transactions and avoid third-party access to their personal accounts.
10. SUGGESTION FOR FURTHER STUDIES
As an attempt to complement and enrich this study, it is suggested for future studies to conduct
and compare the level, flows and usefulness of marketing intelligence among existing firms in
Nigeria regardless of their regions, state headquarters and country wide towards achieving business
competitive edge over each other in the marketplace. Also, for future research, attention
should be paid to the variation in the sub-constructs of marketing intelligence, most especially
internal record and marketplace opportunity with inverse relationship with the business competitive
advantage.
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Contact information
Dr. Patrick, K. A. Ladipo (PhD)
Department of Business Administration
University of Lagos
Akoka, Yaba, Lagos, Nigeria.
Email: pkaladipo@yahoo.com
Dr. Mufutau Akanbi Awoniyi (PhD)
Department of Marketing
Lagos State University
Ojo, Lagos, Nigeria.
Email : mugafric2001@yahoo.com
Ismail Tubosun Arebi
Department of Business Administration
University of Lagos
Akoka, Yaba, Lagos, Nigeria.
Email : arebi.ismail@gmail.com
23.
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