Wendy Diamond Business Librarian Meriam Library CSU 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 corn  Manufacturing the flakes  Distributing to supermarkets  Grocery chains  Serving customers at your new Cereal Brew Pub (why not?) Image by Alisdair McDiarmid, used under the Creative Commons license.Alisdair McDiarmid “CEREAL” IS A PRODUCT

Option #1 Option #2 Maybe --- ?? ‘Non-Analytical Integrated Course Strategy” NAICS? North American Industry Classification System

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

Industry Snapshot ECONOMIC CENSUS EVERY 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

Company Or entrepreneur Wants to Manufacture or provide Products or Services To Sell Market Research 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”research  Industry 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), more  Encyclopedia 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 journals  Trade Associations  Regulatory & technology issues  Government agencies  Economic census, regulations, labor unions SECONDARY SOURCES

INDUSTRY ANALYSIS Industry Definition 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 Competition? Companies? SWOT?

Industry defined & analyzed GrowthMicroMacro Marketing 305 Industry Outline

IBISWorld & Economic Census DEFINITION SIZE OF INDUSTRY

Definition Competitors MACRO

Business Source SWOT reports MACRO COMPETITION

Found at the bottom of the Industry Definition page IBISWorld MACRO TECH & REGULATORY

IBISWorld GROWTH

MACRO IBISWorld

MICRO SUPPLY CHAIN SEGMENT IBISWorld

Operating Conditions MICRO TECH& REG LABOR

NetAdvantage GROWTH, MACRO, MICRO

GROWTH NetAdvantage Sub Industry

Ency of American Industries Ency of Emerging Industries (ebooks) HISTORY

Mintel MICRO CUSTOMER

MIntel DEMOGRAPHIC & SOCIAL TRENDS

MINTEL