Profit Impact Of Marketing Strategy
The Profit Impact of Market Strategy (PIMS) database "yields solid evidence in support of both common sense and counter-intuitive principles for gaining and sustaining competitive advantage": Tom Peters and Nancy Austin. It was developed with the intention of providing empirical evidence of which business strategies lead to success, within particular industries. Data from the study is used to craft strategies in strategic management and marketing strategy. The study identified several strategic variables that typically influence profitability. Some of the most important strategic variables studied were market share, product quality, investment intensity, and service quality, (all of which were found to be highly correlated with profitability).
According to Lancaster, Massingham and Ashford (Essentials of Marketing, 4th edition, McGraw Hill), PIMS seeks to address three basic questions:
- What is the typical profit rate for each type of business?
- Given current strategies in a company, what are the future operating results likely to be?
- What strategies are likely to help improve future operating results?
Dibb, Simkin, Pride and Ferrell (Marketing Concepts and Strategies, 4th European edition, Houghton Mifflin) cite six principal areas of information that PIMS holds on each business:
- characteristics of the business environment
- competitive position of the business
- structure of the production process
- how the budget is allocated
- strategic movement
- operating results.
Read more about Profit Impact Of Marketing Strategy: Brief History of PIMS, Conclusions Drawn By PIMS, Participation in The PIMS Study: Cost and Benefits, A Critique of PIMS
Famous quotes containing the words profit, impact and/or strategy:
“These earthly godfathers of Heaven’s lights,
That give a name to every fixed star,
Have no more profit of their shining nights
Than those that walk and wot not what they are.”
—William Shakespeare (1564–1616)
“As in political revolutions, so in paradigm choice—there is no standard higher than the assent of the relevant community. To discover how scientific revolutions are effected, we shall therefore have to examine not only the impact of nature and of logic, but also the techniques of persuasive argumentation effective within the quite special groups that constitute the community of scientists.”
—Thomas S. Kuhn (b. 1922)
“... the generation of the 20’s was truly secular in that it still knew its theology and its varieties of religious experience. We are post-secular, inventing new faiths, without any sense of organizing truths. The truths we accept are so multiple that honesty becomes little more than a strategy by which you manage your tendencies toward duplicity.”
—Ann Douglas (b. 1942)