Planning

Planning is essentially a process directed toward making today’s decisions with tomorrow in mind and a means of preparing for future decisions so that they may be made rapidly, economically, and with as little disruption to the business as possible.

Though there are as many definitions of planning as there are writers on the subject, the emphasis on the future is the common thread underlying all planning theory. In practice, however, different meanings are attached to planning. A distinction is often made between a budget (a yearly program of operations) and a long-range plan. Some people consider planning as something done by staff specialists, whereas budgeting is seen to fall within the purview of line
managers.

It is necessary for a company to be clear about the nature and scope of the planning that it intends to adopt. A definition of planning should then be based on what planning is supposed to be in an organization. It is not necessary for every company to engage in the same style of comprehensive planning. The basis of all planning should be to design courses of action to be pursued for achieving stated objectives such that opportunities are seized and threats are guarded against, but the exact planning posture must be custom-made (i.e., based on the
decision-making needs of the organization).

Operations management, which emphasizes the current programs of an organization,
and planning, which essentially deals with the future, are two intimately related activities. Operations management or budgeted programs should emerge as the result of planning. In the outline of a five-year plan, for example, years two through five may be described in general terms, but the activities of the first year should be budgeted and accompanied by detailed operational programs.

A distinction should also be made between planning and forecasting. Forecasting considers future changes in areas of importance to a company and tries to assess the impact of these changes on company operations. Planning takes over from there to set objectives and goals and develop strategy. Briefly, no business, however small or poorly managed, can do without planning.
Although planning per se may be nothing new for an organization, the current emphasis on it is indeed different. No longer just one of several important functions of the organization, planning’s new role demands linkage of various parts of an organization into an integrated system. The emphasis has shifted from planning as an aspect of the organization to planning as the basis of all efforts and decisions, the building of an entire organization toward the achievement of designated
objectives.

There is little doubt about the importance of planning. Planning departments are key in critiquing strategies, crystallizing goals, setting priorities, and maintaining control;8 but to be useful, planning should be done properly. Planning just for the sake of it can be injurious; half-hearted planning can cause more problems than it solves. In practice, however, many business executives simply pay lip service to planning, partly because they find it difficult to incorporate planning into the decision-making process and partly because they are
uncertain how to adopt it.

planning concept

CONCEPT OF PLANNING

Throughout human history, people have tried to achieve specific purposes, and in this effort some sort of planning has always found a place. In modern times, the former Soviet Union was the first nation to devise an economic plan for growth and development. After World War II, national economic planning became a popular activity, particularly among developing countries, with the goal of systematic and organized action designed to achieve stated objectives within a given period. Among market economies, France has gone the furthest in planning its economic
affairs. In the business world, Henri Fayol, the French industrialist, is credited with the first successful attempts at formal planning.

Accomplishments attributed to planning can be summarized as follows:

1. Planning leads to a better position, or standing, for the organization.
2. Planning helps the organization progress in ways that its management considers most suitable.
3. Planning helps every manager think, decide, and act more effectively and progress in the desired direction.
4. Planning helps keep the organization flexible.
5. Planning stimulates a cooperative, integrated, enthusiastic approach to organizational problems.
6. Planning indicates to management how to evaluate and check up on progress toward planned objectives.
7. Planning leads to socially and economically useful results.

Planning in corporations emerged as an important activity in the 1960s. Several studies undertaken during that time showed that companies attached significant importance to planning. A Conference Board survey of 420 firms, for example, revealed that 85 percent had formalized corporate planning activity.2A1983 survey by Coopers & Lybrand and Yankelovich, Skelly, and White confirmed the central role played by the planning function and the planner in running most large businesses.

Although the importance of planning had been acknowledged for some time, the executives interviewed in 1983 indicated that planning was becoming more important and was receiving greater attention. A 1991 study by McDonald’s noted that marketing planning is commonly practiced by companies of all sizes, and there is wide agreement on the benefits to be gained from such planning 1996 survey by the Association of Management Consulting Firms found that business persons, academics, and consultants expect business planning to be their most
pressing management issue as they prepare to enter the next century.

Some companies that use formal planning believe that it improves profits and growth, finding it particularly useful in explicit objective setting and in monitoring results.6 Certainly, the current business climate is generating a new posture among executives, with the planning process being identified by eight out of ten respondents as a key to implementing the chief executive officer’s (CEO) chosen strategy. Today most companies insist on some sort of planning exercise to meet the rapidly changing environment. For many, however, the exercise is cathartic rather than creative.

Growth is an accepted expectation of a firm; however, growth does not happen by itself. Growth must be carefully planned: questions such as how much, when, in which areas, where to grow, and who will be responsible for different tasks must be answered. Unplanned growth will be haphazard and may fail to provide desired levels of profit. Therefore, for a company to realize orderly growth, to maintain a high level of operating efficiency, and to achieve its goals
fully, it must plan for the future systematically. Products, markets, facilities, personnel,
and financial resources must be evaluated and selected wisely.

Today’s business environment is more complex than ever. In addition to the keen competition that firms face from both domestic and overseas companies, a variety of other concerns, including environmental protection, employee welfare, consumerism, and antitrust action, impinge on business moves. Thus, it is desirable for a firm to be cautious in undertaking risks, which again calls for a planned effort. Many firms pursue growth internally through research and development.

This route to growth is not only time-consuming but also requires a heavy commitment of resources with a high degree of risk. In such a context, planning is needed to choose the right type of risk. Since World War II, technology has had a major impact on markets and marketers.
Presumably, the trend of accelerating technological change will continue in the future. The impact of technological innovations may be felt in any industry or in any firm. Therefore, such changes need to be anticipated as far in advance as possible in order for a firm to take advantage of new opportunities and to avoid the harmful consequences of not anticipating major new developments.


Finally, planning is required in making a choice among the many equally attractive alternative investment opportunities a firm may have. No firm can afford to invest in each and every “good’’ opportunity. Planning, thus, is essential in making the right selection.

Concept

Marketing and the Concept of Planning and Strategy

Over the years marketers have been presented with a series of philosophical approaches to marketing decision making. One widely used approach is the marketing concept approach, which directs the marketer to develop the product offering, and indeed the entire marketing program, to meet the needs of the customer base. A key element in this approach is the need for information flow from the market to the decision maker. Another approach is the systems approach, which instructs the marketer to view the product not as an individual entity but as just one aspect of the customer’s total need-satisfaction system.

A third approach, the environmental approach, portrays the marketing decision maker as the focal point of numerous environments within which the firm operates and that affect the success of the firm’s marketing program. These environments frequently bear such labels as legal-political, economic, competitive, consumer, market structure, social, technological, and international.

Indeed, these and other philosophical approaches to marketing decision making are merely descriptive frameworks that stress certain aspects of the firm’s role vis-à-vis the strategic planning process. No matter what approach a firm follows, it needs a reference point for its decisions that is provided by the strategy and the planning process involved in designing the strategy. Thus, the strategic planning process is the guiding force behind decision making, regardless of the approach one adopts. This relationship between the strategic planning process
and approaches to marketing decision making is depicted in Exhibit 1-1.

Planning perspectives develop in response to needs that arise internally or that impinge on the organization from outside. During the 1950s and 1960s, growth was the dominant fact of the economic environment, and the planning processes developed during that time were typically geared to the discovery and exploitation of entrepreneurial opportunities. Decentralized planning was the order of the day. Top management focused on reviewing major investment proposals
and approving annual operating budgets. Long-range corporate plans were occasionally put together, but they were primarily extrapolations and were rarely used for strategic decision making.

Planning perspectives changed in the 1970s. With the quadrupling of energy costs and the emergence of competition from new quarters, followed by a recession and reports of an impending capital crisis, companies found themselves surrounded by new needs. Reflecting these new management needs and concerns, a process aimed at more centralized control over resources soon pervaded planning efforts. Sorting out winners and losers, setting priorities, and conserving capital became the name of the game. A new era of strategic planning dawned over corporate America. The value of effective strategic planning is virtually unchallenged in today’s business world. A majority of the Fortune 1000 firms in the United States, for instance, now have senior executives responsible for spearheading strategic planning efforts.

Strategic planning requires that company assets (i.e., resources) be managed to maximize financial return through the selection of a viable business in accordance with the changing environment. One very important component of strategic planning is the establishment of the product/market scope of a business. It is within this scope that strategic planning becomes relevant for marketers.1 Thus as companies adopted and made progress in their strategic planning capabilities, a new strategic role for marketing emerged. In this strategic role, marketing concentrates on the markets to serve, the competition to be tackled, and the timing of
market entry/exit.

Investment research

INVESTMENT RESEARCH REPORTS

Investment research reports are highly valued because they are written by expert analysts at investment banks, brokerage houses and consulting firms which closely follow particular industries and companies. Produced by financial services firms to guide investors, they focus on
stock market buy-and-sell analysis and on individual companies. However, in addition to the company-level investment advice, many firms also produce broader reports about whole industries, which contain useful information for marketers.

The reports compile information from a variety of sources, some of which are unique. Thus, in addition to such standard sources as annual reports, business and trade press, and government sources, these investment research reports may also be based on one-on-one interviews, personal relationships with company management, company contracts, focus groups, and proprietary market forecasts.

One major problem is that analysts’ reports can be somewhat difficult to access due to their high cost and specialized nature. Available both in print and through subscription Web sites, many specialized research- oriented business libraries may provide them, but smaller more general collections probably will not. In some cases, they may also be available in public libraries with large investment collections, and sometimes they can also be purchased individually through the investment company’s Web site.

Research Bank Web. New York: Thomson Financial. Online subscription. Price varies. Contact: http://www.investext.com. Research Bank Web is an online search system providing three content data sets that are highly useful for industry research: Investext Investment Research, MarkIntel Market Research, and Industry Insider Trade Association Research. The emphasis is on current material, though some historical reports as old as 1994 are available.

The Research Bank Web interface is user-friendly, with excellent search and retrieval features and functions. It is possible to view tables of contents before purchasing and to selectively print required pages or sections. Documents can be viewed in PDF format so they appear just like the print originals. Investext and MarkIntel are also available through other vendors’ online systems, such as Gale’s General Business File, Dialog, LexisNexis, and others.

International in scope, Investext is a collection of analyst reports from over 630 brokerage, consulting, and investment firms, including Morgan Stanley Dean Witter, Merrill Lynch, Credit Suisse First Boston, Robertson Stephens, Lehman Brothers, and Salomon Smith Barney. These industry reports discuss trends, identify major players, disclose market share, and examine historical performance in an industry or region. MarkIntel Market Research covers 145 market research publishers including Datamonitor, GartnerGroup, and Economist Intelligence Unit.

These reports offer coverage of public and private companies, including primary research and statistics, interviews with industry leaders, survey research, trends and forecasts, market size and share data, and market segment analysis. Industry Insider Trade Association Research is a unique online collection of professional association research. Reports cover approximately 200 trade organizations worldwide such as the Food Institute, the Personal Communications Industry Association, and Sporting Goods Manufacturers. These reports, often written by economists employed by the professional associations, contain growth trends, consumer spending habits, sales figures, export/import facts, manufacturing capacity, product development, market share, and news and analysis. Investment analyst reports are also available from brokerage firms themselves, especially to customers of the firm or through
Web sites and other e-commerce gateways.

Multex (http://www.multexusa.com) is another source of online investment analyst reports. Registration is required, but the database can be accessed at no charge; in addition, institutional subscriptions are available. Multex software provides an easy method for limiting search
results to industry reports only. TIP: Industry Analysis in Market

Multi - Industry

A multi-industry overview is a collection of specific information about multiple industries across all sectors of the economy. These industry discussions generally give a snapshot review of the industry, and include narrative analysis together with facts, figures, and other data. Also included are sources for further leads, such as names of associations and trade journal titles.
The value for the researcher is that these multi-industry overview sources integrate a tremendous amount of narrative analysis and statistics into one concise report.

Encyclopedia of American Industries. Edited by Rebecca Marlow- Ferguson. 3rd edition. Farmington Hills, MI: Gale Group, 2001. Print. $560. 3,434 pages. Contact: http://www.galegroup.com.

Due to its broad scope, the Encyclopedia of American Industries (EAI) is an excellent place to start an industry research project. According to its Introduction, EAI provides coverage on “every industry recognized by the U.S. Standard Industrial Classification (SIC) system,” although sometimes the reports are not highly detailed or lengthy. The 3rd edition, published in two volumes, continues to be organized using the SIC system, but NAICS numbers are also given in each entry. Conversion tables for SIC and NAICS code comparisons are also provided. Manufacturing Industries are covered in Volume 1 and Service Industries in Volume 2. In addition to discussions of current circumstances and future trends, EAI’s industry essays also treat historical events of consequence. This feature is useful for teachers and students of marketing because it offers opportunities to analyze outcomes and impacts of previous circumstances. The following issues are discussed in most industry entries (with some variation due to the idiosyncrasies of individual industries):

• Industry Snapshot–overview of key trends, issues and statistics
• Organization and Structure–configuration and functional aspects of the industry, including government regulation, sub-industry divisions, and interaction with other industries

Background and Development–industry’s genesis and history, including major technological advances, scandals, pioneers, major products, and other factors
• Current Conditions–status of the industry in the mid-to-late 1990s
• Industry Leaders–profiles major companies within the industry; includes discussion of financial performance
• Work Force–size, diversity and characteristics of the industry’s work force
• America and the World–global marketplace factors
• Research and Technology–major technological advances and new areas of research that may have potential impact on the industry
• Further Reading–sources used to compile the articles and which
can be used for further research

Industry codes

When researching an industry, the marketer will encounter two common systems for classifying industries: the North American Industry Classification System (NAICS) and the Standard Industrial Classification (SIC). Both systems use a hierarchic, numeric scheme to define and
distinguish one industry from another, helping to clarify whether the business is manufacturing, retail, wholesale, service-based, or commodity- based. As Michael Lavin puts it:

It is vague to say a company is in the motion picture business. Is the speaker describing a film studio? A production company? A distributor? A casting service? . . . (Lavin 1992, 62)

The primary purpose of industry codes, such as NAICS and SIC, is to aid U.S. government agencies (and their North American counterparts) in collecting, tabulating, disseminating, and analyzing statistical data about business establishments and activity. The codes are also heavily
used by information providers as a means of arranging many different types of information by industry, including company listings, narrative overviews, financial ratios, economic reports, and statistics.

NAICS officially replaced SIC codes in 1997, but SIC continues to be used in many commercial publications, and for historical data. Although the direct impetus for the revision was the adoption of the North American Free Trade Agreement (NAFTA), the SIC system had regularly been critiqued as out-of-date, and NAICS has indeed improved the definition of new and emerging sectors, especially technology, information, and service industries in general. Furthermore, regular revisions continue to keep it current.

While appreciating their usefulness, it is also important to recognize the limitations of industry codes as aids to research. Simply because there is a code for a particular industry, does not necessarily mean that there is a corresponding ability to capture a significant amount of information about it. For example, “bowling centers” has a NAICS code of 71395, but the researcher should not expect to find a great deal of published information about that particular enterprise. Instead, it might be necessary to look at the broader segment “Amusement, Gambling & Recreation Industries” (NAICS 713).

Furthermore, many of the sources given below utilize their own industry names rather than the numerical, hierarchical NAICS or SIC systems. NAICS is based on a six-digit code system whereby each industry can be broken down into finer distinguishing segments than was possi-ble in the 4-digit SIC system. There are 20 major divisions, represented by the first two digits. After the initial two-digit category, the digits classify the industry more specifically in its sector.

Thus, 71 represents Arts, Entertainment and Recreation; 713 is Amusement, Gambling and Recreation; 7139 is used for “Other Recreation”; 71391 is Golf Courses and Country Clubs, 71392 is Skiing, 71394 is Fitness and Recreational Sports Centers, 71395 is Bowling Centers, and so on.

Industry Scan

Sources for an Industry Scan

Industry Codes
Multi-Industry Overviews
Investment Research Reports
Statistics and Quantitative Data (market size, market share, financial
ratios, etc.)
Industry Specific Information
Trade Journals
Trade Association and Other Web Sources
Government and Regulatory Information

Sources
Encyclopedia of American Industries
Industry Surveys
U.S. Business Reporter
Value Line Investment Survey
Research Bank Web
Economic Census
County Business Patterns
Current Industrial Reports
Annual Survey of Manufactures
Manufacturing & Distribution USA
Business Statistics of the United States

Whether tangible goods or beneficial services, the marketer has a product to sell. The initial focus of any marketing project is the product that will attract customers, be sold, generate profits, and garner new business. However, the product does not exist in isolation. It will be launched into a complex existing environment fraught with competitive constraints, social and political influences, and technological challenges.

It is essential to understand the broader situational and environmental factors in the industry because they have direct impact on the ability to market a product or service effectively and thus sell it successfully. Learning about the industry environment, often referred to as the
“market,” may seem at times to be far from the main goal of selling the product, but an in-depth analysis of the entire industry is an essential component of the overall marketing strategy.

It can tell you whether you will be selling your product or service in a growing or contracting industry, whether there are a few large competitors or many small players, what new technologies may offer, whether the regulatory climate is benign or challenging, and whether the target customer base is growing. When the industry (or market) scan is complete, you will have an understanding of the current market size and the growth potential for your product or service.

World Wide Web

The World Wide Web (“the Web”) has dramatically revolutionized information dissemination. In fields such as business, where there is a high premium on current information, the impact has been particularly powerful. In common parlance, the term “World Wide Web” is often used to indicate “online” or “electronic,” implying that it is also freely available.

There are also numerous fee-based sites and subscription databases, particularly in business, that use Web-based software; this content is not available to the general public without cost. Many of these online sources originated in other print or electronic formats (e.g., CD-ROM). Most now have at minimum an introductory Web page that is freely accessible to anyone with a network connection or an Internet Service Provider (“ISP”), such as AOL, and browser software such as Internet Explorer or Netscape.

The fact that the Web makes it so easy to find information about other content is no less innovative than the provision of free information (which is notorious for its lack of accountability and authority). Because the Web is such an outstanding promotional and communication tool, professional associations, government agencies, university research centers, and commercial publishers all but universally use it to publicize themselves and their services.

In addition to the “free” Web and the fee-based online resources available through it, information professionals are also aware of a third component, the “invisible Web” or “deep Web.” The invisible Web refers to materials that are not readily accessible–or findable at all–using standard searches in tools such as AltaVista, Yahoo, and Google.

It is not that the information is not there, but rather it is not available at the strata closest to the surface. Increasing amounts of Web information are embedded within interactive databases, which must be are queried by the searcher in real-time. Product catalogs, glossaries, currency conversion calculators, and directories commonly take this form and are therefore important to business researchers. It is only when a “search form” is filled in that the request is executed and the information is retrieved. (This is the explanation for those often lengthy, garbled-looking Web addresses containing initials, numerals, and question marks; anything you cannot re-type easily is probably a “dynamic” URL.)

These free, searchable databases may originate from government sources (e.g., a directory of contractor’s license numbers or historical census data) or from private or commercial sources (e.g., company product catalogs or vendor directories).Another type of deep Web information is lengthy textual material, such as that found in white papers, case studies, articles, reference books, and reports. These are often coded using software formats other than the usual Web software known as “HTML.” Unless one has an exact

title and Web address, these narrative documents can be difficult to locate except by scouring individual Web pages. The search engine Google (http://www.google.com) has made locating these documents easier by searching within the text of a variety of software formats, such as PDF, Microsoft Word, Microsoft Excel, PowerPoint, Postscript, and others. When you do a regular search in Google, your results list will include a notation of the format of the document. One way to locate case studies, white papers and other narrative documents is to restrict your
search to one of the common textual file types.

Statistics and Tables

Much business and economic information is quantitative and is best presented as tables, charts, graphs, rankings and the like. Economic data in particular is often reported in time series format, a term which refers to the fact that the information is presented in intervals arranged by some time-based frequency (e.g., daily, weekly, annually). Long time series of data are those that include historic depth, which are particularly valued because they enhance statistical certainty in spotting trends and making forecasts for the future.

Many of the databases discussed previously include articles from trade journals and industry newsletters that are likely to include tables and other graphics. In addition, there is a database that specializes in tables and other types of quantitative data.


TIP: Using Statistics and Tables
• Be aware of units of measurement in a table, especially when comparing data from multiple sources. Are figures reported as dollars, percentages, percent change, indexes, or whole numbers?
• Use source notes to identify leads to more detailed and in-depth information. For example, a table of market share data for the textbook publishing industry could lead to an annual special issue devoted to the topic in Educational Marketer, a trade journal.

• In his book Business Information: How to Find It, How to Use It (2nd edition; Phoenix, AZ: Oryx Press, 1991), Michael R. Lavin offers a comprehensive treatment of business statistics. In
addition to defining basic concepts such as averages, percent change, ratios, index numbers, and rankings, there is discussion of advantages and disadvantages, logic, abuses and potential
pitfalls of numeric data. This excellent overview is in his Chapter 13, “Introduction to Statistical Reasoning.”

The statistical publications of more than 1,000 leading trade associations and professional societies, universities and research centers, commercial publishers, and state government agencies are described and analyzed in SRI, which began publication in 1980. All types of publications are treated, including periodicals (Advertising Age, Sales and Marketing Management, etc.), annuals (Trends in Advertising, U.S. Hispanic Market, etc.) and other serials, and one-time publications; many of the titles covered are indexed in no source other than SRI.

As the subject coverage tends to emphasize economics, business, and industry, SRI will usually be found in academic or public libraries serving a high demand for business information; however, the scope of the index encompasses many other fields as well.

Periodical Indexes

Features Found in Most Periodical Indexes

Keyword Searching
A “keyword” search finds all occurrences of a particular word in a title, subject heading, abstract/summary, or author name. This is useful when you are not sure of the correct subject term and just want to find some articles on your topic.

Subject Searching
Like library catalogs described previously, most periodical indexes employ a structured vocabulary of subject headings (sometimes known as a “thesaurus”) in order to gather all similar articles together, thus reducing the need for trying different keyword variants. Many employ a
thesaurus designed for the topic area covered by the database, enabling the researcher to perform very accurate searches. It is often possible to “browse” the alphabetical listing of subject headings in the thesaurus in order to select the term that best reflects your particular topic.

Field Searching
Field searching lets you target a search within a particular segment of the description of the article. For example, you could look for the words “niche marketing” in only the article title field. This is often a good way of retrieving the most relevant articles or of restricting your search when you get too many irrelevant “hits.”

Truncation and Wildcards
This feature lets the searcher look for variations of words using only the word stem. For example, “advertis*” retrieves advertisement, advertising, advertiser, etc. Each database uses its own truncation symbols, and some have different ways of searching for one letter (useful for plurals) versus searching for unlimited additional letters. Some will also permit a wildcard character to be embedded within a word to be searched.

Boolean Combinations
The Boolean logic operators, AND, OR, NOT, allow the searcher to combine or exclude more than one word or phrase in a precise manner. Unlike many Web search engines, most structured databases are designed so that a two-word search is always executed as if the two words are next to each other, in the exact order as typed unless the searcher has joined them with AND or OR. Note the difference between these searches: “sports marketing” (no Boolean operator; searches as a phrase); “sports AND marketing” (retrieves articles that have both words in them); “sports OR marketing” (retrieves articles with either term or both).

The first search would retrieve the fewest articles, probably those most relevant to sports marketing. The second would retrieve only articles that include both words, but not necessarily near each other; the third would retrieve all articles that include either the word sports or the word marketing, a result that would probably be neither manageable nor relevant. On the other hand, OR is useful when you want to include similar concepts or synonyms: for example, “game or toy.”

Publication Searches
Periodical databases always include a list of the publications that are indexed. In a full-text database, this list can be used to retrieve a known article using the journal title, volume number, page, and date information,
as with a citation from a bibliography or reading list

Searching database

SEARCHING PERIODICAL DATABASES

A periodical index is a tool that enables the researcher to pinpoint relevant articles published in a wide array of different magazines and periodicals. Print versions of the Reader’s Guide to Periodical Literature and Business Periodicals Index have saved researchers countless hours of time and frustration, but still required an additional step of retrieving the actual article itself.

With computers, searching and retrieval can be combined into one process, and today’s periodical databases have expanded to include the complete full text of many–sometimes all–of the cited articles in a database.

Many business libraries will have at least one of the following periodical databases which can be used as an index to locate articles on a specific topic. These are subscription databases that are usually too costly for individuals to consider. Independent researchers and professional information brokers often subscribe to search systems that offer numerous periodical databases at transactional pricing, such as those discussed below in the section “Specialized Business Search Systems.” Although each of the databases listed here has a different navigational system or “front-end software,” most offer similar features.

Like online library catalogs, they are structured databases that segment individual units of information about the article into “fields.” This makes searching more reliable than it is on the Web, but it also requires some knowledge and skill to search effectively. Once learned, these search skills transfer readily to many different databases.

Research Strategies

RESEARCH STRATEGIES

In order to find the right information, you must start with defining a research problem. First, determine whether you are researching companies, or industries and products, or management theory and practice, or the general business climate. Each of these categories has particular
business information tools. For company research, there are directories and annual reports; for industry research, there are industry overviews and statistics; for management practice, there are handbooks and “best practice” guidelines; and for the general business climate, there are economic reports from government and commercial analysts.

Second, determine whether specific or comparative information is needed: do you need to find out about the marketing strategy of one particular company, or retrieve a ranked list of several apparel manufacturers? The next useful question is whether quantitative or narrative information is needed: for example, do you need statistical data showing sales revenue in the retail apparel industry or do you need an analysis of retailing technologies? Next, determine the time frame required. Are you seeking current information, or does the project require historical trend data? Do you also require projections and future forecasts?

You will also need to consider whether you require primary or secondary information. Primary information is information collected and generated directly, and might include personal telephone calls to experts or compiling a spreadsheet report of a company’s sales. Secondary information is that which you gather from existing sources, such as company memos or commercial publishers.

In Business Information: How to Find It, How to Use It, Michael Lavin (1992, 5) provides a useful matrix that distinguishes between internal or external and primary or secondary information. Lavin points out that secondary information is generally easier to acquire and less costly than primary data. In particular, understanding how to research and “mine” external secondary information is an often overlooked tool for business success. After you have analyzed your business problem, and have determined whether you need comparative or specific information, narrative or quantitative, historical, current, or future data, you are ready to start
looking for the right information.

Using this book, review the discussion of the sources in each topic to find the type of information that meets your criteria. In addition, it is important not to overlook the general sources that do not focus on any one particular aspect of marketing, which are discussed in this chapter. Although these general sources might seem to be unfocused, they actually contain information about many different topics. Many of them will contain just the right nugget for your particular information need, but that can only be recognized at the moment that you need it. The last crucial step in your research strategy is evaluating and critically assessing the information you have found for its currency, accuracy, and usefulness. This has always been true, but the Internet requires

a slightly different set of criteria because anyone can publish anything on the Web. Without the usual controls and review processes of commercial or academic publication, the user must consciously consider some essential questions in order to determine the authority and reliability
of the information, especially if it is to be used for decision making purposes. Is there a named author or producer? What is the primary purpose of the Web site–to sell or promote, to educate, or to advocate? Does the purpose alter the objectivity of the information provided? Is there a date of creation or revision? Can you ascertain whether the information is current or out-of-date? Is there a bibliography or list of sources cited where information can be verified and leads followed? Finally, is the Web site organized well with few typographical errors?

BUSINESS LIBRARIES

BUSINESS LIBRARIES

Business information cannot be discussed without including business libraries, a traditional “purveyor” of business information and still a locus for expert advice about this specialized area of research. Throughout this book, we refer to certain sources as “typically available in public and academic libraries.” This phrase is intended to highlight sources which the authors, both of whom are academic business librarians, know to be commonly available in business departments of public

libraries or in college and university libraries supporting degree programs in business. In the public library sector, there are only a very few entire libraries devoted exclusively to business. New York Public Library’s Science, Industry and Business Library (SIBL) is the preeminent
example. Throughout the rest of the United States, many large municipal or county library systems have a major reference department serving the business community. These are more likely than small neighborhood branches to own the most specialized sources. In any case, it is always worth calling a local branch to ask a librarian whether a specific resource may be available and, if not, what would be the best regional library for business information, or whether interlibrary borrowing is possible.

In some cases, the best local library will be an academic library serving students and faculty involved in learning and teaching business subjects. Within academic libraries, there are some distinctions. The most extensive collections are generally located in separate business libraries
serving universities with MBA and doctoral programs. An important caveat is that some are private and not open to the public, or even if they are open, some resources may be restricted to currently enrolled students and faculty only. College libraries serving even undergraduate
business programs will have many business reference resources, though again some may be restricted.

Another type of business library is known as the “special library.” Often called “information centers,” these are libraries that support the information needs of corporations, associations, or agencies. Because they are rarely open to the general public, they cannot be considered an
access point, but nonetheless they play an important role. Many of the sources named in this book, as well as additional sources, are likely to be available in the marketing collections of corporate libraries, or in information centers of advertising agencies. Furthermore, special librarians are likely to be the most knowledgeable specialists in the intricacies of business research and the hundreds of available databases. If you are an employee of a corporation with a well-staffed library or information center, do not overlook this valuable resource.

OVERVIEW 2

OVERVIEW OF BUSINESS INFORMATION - 2

Another form of raw data is produced by government agencies. These sources are considered most reliable and authoritative, but they are often published in formats with limited features and convenience. Because almost all government information is in the public domain, it is common for private publishers to re-publish it with “value-added” features. Scholarly publications, such as journal articles and conference proceedings, are also known for high authority value, but they are generally lower on the timeliness scale. Books take the longest to research and produce, but they can range in authority depending on whether the work may be scholarly, published by a well-reputed firm, authored by an expert, or other factors.

It is important to note that all information “packages”–raw news, press releases, newspaper and magazine articles, proceedings, government reports, scholarly journal articles, and even books–may appear both in print and online. It is not the physical format per se that is crucial, but rather whether a format is appropriate for the information being conveyed. The forms of business information “packages” are diverse. Though most are not unique to business, some forms are more common than they may be in other fields. The familiar, prosaic list is a basic form of information that is very commonly used in business.

Directories of companies are a prime example of lists, and there are directory titles covering virtually every specialty. Because business is a competitive field, rankings, a form of list that offers a comparative measurement dimension, have a prominent role. The index number is another typical quantitative form which represents a “measure of relative value compared with a base quantity” (Shim and Siegel 1995, 180). The Consumer Price Index, issued by the federal Bureau of Labor Statistics, is the most well-known example, but marketers often use index numbers to express a relationship between ranked items, such as sales potential in geographic regions.

Qualitative, narrative forms that blend analysis, assessment, commentary, and review with charts, tables, graphs, and rankings are especially highly valued. Overviews are a common configuration that is used to present in-depth, detailed factual material in a concise form. The
term “report” can be used in its most commonly-understood meaning, or it can convey a particular blend of narrative analysis and quantitative data, such as that found in investment analyst and market research reports. The “white paper,” a term originally used by governments and later made popular in scientific communities, is another report form often used for lengthy reports, particularly those with a technical, investigative, or advocacy component.

Marketing is both a practitioner and an academic field, and there is a symbiotic relationship between the two perspectives. Academic researchers provide a theoretical foundation. Practitioners synthesize this theory with real-world applications to develop “best practices.” Academic researchers, in turn, refer back to real world data and examples in the form of quantitative studies, case studies, and analysis in order to teach students to become professionals and to develop additional areas of research.

Case studies and handbooks are formats used to convey concrete concepts and practical applications of theoretical ideas. The former are often used in textbooks and courses to focus on company-level examples and real-world solutions to problems. Case studies also continue to
be an important form of publication in the practitioner environment, and are often published as articles for professional audiences.

Similarly practical in purpose, handbooks are a special type of reference book that combines some characteristics of articles, how-to guides, encyclopedias,and even statistical abstracts and directories. The best handbooks provide overview, background, in-depth discussion, and references to further reading in addition to hands-on, practical advice. They can be used by the novice to gain insight into the knowledge base of professional specialists, while at the same time guiding the expert to more detailed information. Many chapters throughout this book refer to excellent handbooks on a particular sub-specialty of marketing. In this introductory chapter we discuss some useful examples and provide strategies for locating others.

OVERVIEW 1

OVERVIEW OF BUSINESS INFORMATION

An understanding of the special forms and structure of business information will promote the effective utilization of it, whether for a marketing plan, term paper, competitive analysis, or any other research project. The very fact that business information is used as a profit-making tool is the driving force behind many publications. Often information is available simply because it is so saleable and desirable. As Michael Lavin puts it,

Literally, any type of business information can be published, no matter how unlikely. Since information can be the key to business success, managers are usually willing to pay for it when the need arises. . . . Never assume information is unavailable just because its existence seems unreasonable. (Lavin 1992, 6-7)

However, as Lavin also points out, some information is proprietary, very expensive, and available only to bona-fide subscribers, citing two well-known examples in the Arbitron radio and television ratings and the Multiple Listing Service used by realtors (Lavin 1992, 5). Some information can also be so valuable that it is effectively unavailable to the average researcher. It helps to ask oneself: Why would someone provide a certain piece of information? What is its value to someone using it to make money? Is it particularly time- or labor-intensive to gather,
valuable for profit making purposes, and/or competitive positioning? If so, it is likely to be expensive. At the other end of the spectrum, if it is likely to be useful to a government agency for economic or regulatory reasons, then it may be available at no charge.

The foregoing factors have important implications for the ease of locating and using business information. First and foremost, there is a huge volume of it. Second, its sources are fragmented, ranging from government agencies, to commercial publishers, to professional associations, to other advocacy groups. Frustratingly, the most valuable information may be proprietary, or at the least, very expensive (Butler and Diamond 2001).

Generally, business information is most useful when it is current and timely. There is a life cycle to business information that dictates the type of “packet” in which it appears. Thinking about information in terms of its stage in the life cycle can be helpful in discovering where to look for
a particular item. Both timeliness and reliability have a high value, and to some extent there is an inverse relationship between these two dimensions.

At the earliest stages of the information life cycle, such as raw news and press releases, timeliness presents the greatest value but reliability may be low. With the Internet, raw data are disseminated continuously and easily but, as most people understand, with questionable reliability. As a piece of information moves along its life cycle, there is time for discussion and verification. At the next stage, the information appears in business newspapers, magazines, and newsletters, with added commentary and data (Ojala 1996, 79). Eventually, it may end up in a
book, scholarly journal article, or published in a conference proceeding.