Wendy Diamondw d i a m o nd @ c s uc h i c o . ed u

Business Librarian

Meriam LibraryCSU Chico

March 6, 2012

MARKETING 305 : INDUSTRY ANALYSIS RESEARCH STRATEGIES

Companies & Entrepreneurs

Investors

Government

Journalists

WHO DOES INDUSTRY ANALYSIS?

AND WHY?

To sell with a strategy

To find customers

To test ideas

To find opportunities

To make regulatory policy

To inform the public

To know what competitors know

Terminology is confusing

Each industry is different

Need to consult more than one source

Market information is expensive

Must be current to be valuable

WHY IS INDUSTRY ANALYSIS CHALLENGING?

Products or services = The Goods, object of all the attention

Markets = Companies & customers selling

& buying

Industries = Broad sectors of the economy

Impacted by similar constraints, challenges, issues, and opportunities

Defined by the stage or category in production, provision, or sales process

Manufacturing vs Wholesaling vs Retailing vs Service

TERMINOLOGY

Product

• It’s the “thing” that is bought & sold

Industry

• What is the stage of production or sales?

IS CEREAL A PRODUCT OR INDUSTRY?

According to NAICS

Growing the cornManufacturing the

flakesDistributing to

supermarketsGrocery chainsServing customers

at your new Cereal Brew Pub (why not?)

I m a g e b y A l i s d a i r M c D i a r m i d, u s e d u n d e r t h e C r e a t i v e C o m m o n s l i c e n s e .

“CEREAL” IS A PRODUCT

Option #1 Option #2

Maybe --- ??‘Non-Analytical Integrated Course Strategy”

NAICS?

North American Industry Classification System

Industry Defi nit ion

NAICS

Is the business related to manufacturing, wholesaling, retailing, or services?

Industry Snapshot

ECONOMIC CENSUSEVERY 5 YEARS

2007 IS LATEST

Economic

Census

Products or services = The Goods, object of all the attention

Markets = Companies & customers selling

& buying

Industries = Broad sectors of the economy

Impacted by similar constraints, challenges, issues, and opportunities

Defined by the stage or category in production, provision, or sales process

Manufacturing vs Wholesaling vs Retailing vs Service

TERMINOLOGY

Company

Products & Services

Sales

The Industry Environment

Market

CompanyOr

entrepreneur

Wants to Manufacture or provide

Products or

Services

To Sell

Industry Analysis

Real-time & do-it-yourself

Very expensive (!)TIME and therefore $$$ =

Can purchase market research reports Some companies

specialize in primary research (e.g., Mintel)

• Examples• Questionnaires• Focus groups• Surveys• Observing the # of

widgets taken to the cash register

• Counting the # of companies in the phone book

• User studies• Data mining web sites• Etc.

PRIMARY RESEARCH

“Desk”researchIndustry Analysis is one of the most important

parts of the secondary research process

Published, government, & trade association sources

Not particularly cheap either

Need to know what your competitors know

SECONDARY RESEARCH

IBISWorld Industry Definition, Outlook, Products & Markets, Operating

Conditions (regulatory & technology), moreEncyclopedia of American Industries

Background (history & development)NetAdvantage

Big, public-traded industries Detailed coverage for economic and other macro-factors Lists “Industry References” for trade associations and

journalsTrade Associations

Regulatory & technology issues

Government agencies Economic census, regulations, labor unions

SECONDARY SOURCES

INDUSTRY ANALYSIS

• Industry Defi nit ion• Dollar volume, NAICS, international, History, Weather, Geography

• Growth ?• Maturity? Cyclical? Seasonal? Steady?

• Macro-Environmental factors• Economy, Regulatory, Technological, Social Demographic• Competition, Companies, SWOT

• Micro-Environmental factors• Customer, who, where, market segments

• Demographics? Targets and segmentation

• Competit ion? Companies? SWOT?

Marketing 305 Industry Outline

Industry

defined &

analyzed

GrowthMicro

Macro

IBISWorld&Economic Census

DEFINITIONSIZE OF INDUSTRY

Defi nit ionCompetitors

MACRO

Business Source SWOT reports

MACROCOMPETITION

Found at the bottom of the Industry Definition page

IBISWorld

MACROTECH & REGULATORY

IBISWorld

GROWTH

MACROIBISWorld

MICROSUPPLY CHAIN

SEGMENTIBISWorld

IBISWorldOperating Condit ions

MICRO

TECH& REGLABOR

NetAdvantage

GROWTH, MACRO,MICRO

GROWTHNetAdvantageSub Industry

Ency ofAmerican Industries

Ency of Emerging Industries

(ebooks)

HISTORY

Mintel

MICROCUSTOMER

MIntel

DEMOGRAPHIC &SOCIAL TRENDS

MINTEL

http://libguides.csuchico.edu/MKTG305