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Profit impact of marketing strategy
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Profit impact of marketing strategy : ウィキペディア英語版
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.
== Brief history of PIMS ==

The PIMS project was started by Sidney Schoeffler working at General Electric in the 1960s, managed by the Marketing Science Institute in the early 1970s, and has been administered by the American Strategic Planning Institute since 1975.
It was initiated by senior managers at GE who wanted to know why some of their business units were more profitable than the others. With the help of Sidney Schoeffler they set up a research project in which each of their strategic business units reported their performance on dozens of variables. This was then expanded to outside companies in the early 1970s.
The initial survey, between 1970 and 1983, involved 2,600 strategic business units (SBU), from 200 companies. Today 12,500 observations exist for 4162 SBU's; PIMS is managed by PIMS Associates in London. Each SBU give information on the market within which they operated, the products they had brought to market and the efficacy of the strategies they had implemented.
The PIMS project analysed the data they had gathered to identify the options, problems, resources and opportunities faced by each SBU. Based on the spread of each business across different industries, it was hoped that the data could be drawn upon to provide other business, in the same industry, with empirical evidence of which strategies lead to increased profitability. The database continues to be updated and drawn upon by academics and companies today.

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