This research uses the IEM as its frame of reference. The Information Environment Model complements the IMMP by outlining where information needed for these decisions can be found. A company that sees information as a central resource must learn to efficiently manage that information and turn it into useable knowledge. Strengths and weaknesses connected to competitor products, Strengths and weaknesses connected to competitor marketing, Strengths and weaknesses connected to competitor production, Strengths and weaknesses connected to competitor raw-materials, Industrial customer requirements for the products, Product requirements based on industrial end-uses, Final customers of end products and their preferences, The production technology of industrial customers, Industrial customer requirements for distribution, Industrial customer requirements for marketing communication, Location of potential industrial customers, Requirements concerning reliability of deliveries, Requirements concerning speed of deliveries, Requirements concerning size of consignment, Total demand of sawn timber and its development by end use sectors in the UK, Total demand of value added timber and its development by end use sectors in the UK, More detailed demand of raw material in joinery sector (windows, doors, stairs) in the UK, Supply of sawn timber and its development (domestic production and imports) in the UK, Supply of value added timber and its development (domestic production and imports) in the UK, General technical development of the market, Development of product norms and standards regarding joinery sector in the UK, Competing suppliers of sawn timber and value added timber in the UK, Competing raw materials in joinery sector in the UK (other wood species, PVC, MDF, aluminum), Potential distributors of value added timber for joineries in the UK, Potential customers (joineries) in the UK (number, size, geographical location), Amount of sawn softwood and timber components used in production, Purchases by suppliers (timber merchants, agent, softwood producers sales office), Quality, dimensions, lengths and moisture content of timber used in production, Perception of the future production and demand of own products, Companys impressions of their customers product requirements, Who (organizational status) is responsible for buying decisions, Attitude towards changing to use timber components, Satisfaction with the performance of present suppliers, Preferred dimensions of sawn softwood or timber components, Role of merchants in the future in the supply chain, The importance of Just In Time deliveries, Structure of a supply chain of standard and customized products, Influence of norms and standards of the market area.
The natural dynamics of the marketplace result in an equilibrium price where supply roughly meets demand buyers will drive prices higher if they are willing to buy more than is supplied, and will drive prices lower if they are willing to buy less than is available. Training and Development. The product purchased represents a high proportion of the buyers total costs. Most associations include membership lists. Webster, F. E. Jr. 1991 Industrial Marketing Strategy. The SWOT analysis illustrates how important it is for a company to be aware of its internal strengths and weaknesses, as well as its external opportunities and threats. Strengths and weaknesses are under the control of the company and reflect the companys position and potential. When planning the value proposition we are interested in customers point of view, customers needs and preferences. This is part of the integrative function of marketing. Masters Thesis. The marketing planner must know both competing companies and competing products and materials. This sort of information is also used in the policy planning of the whole forest sector. The only difference between paper and wood industries is that the information regarding distribution systems is more important for the wood industry.
Information about future investments of competitors that increase supply is clearly more important for the paper industry than for the wood industry. Economies of Scale where economies of scale exist potential entrants must either enter the market on a large scale, risking retaliation from existing firms, or enter on a smaller scale and suffer a cost disadvantage. Paper companies supplying food packaging have customers who are gaining a worldwide presence, and the power that comes with increasing size. The buyer faces few switching costs. Instead information about price competitiveness of competitors is more important for the wood industry than for the paper industry. The following list describes the order of importance of supply information according to the information specialists of the Finnish paper and paperboard industry: According to results from the two Finnish studies (from 2000s), supply information is important in marketing planning, and about equally important as demand information. The level of interest in information within a company varies according to its marketing philosophy and marketing focus. SWOT analysis (strengths, weaknesses, opportunities, threats) is a popular method used in strategic planning. This meant that companies accustomed to growing along with the market were suddenly faced with the need to gain a more in-depth understanding of their competitors. Development of market norms, regulations, standards etc. 41(3):125-145. Recall that the information environment of forest products marketing can be divided into two major categories: the Macro and Micro Environments (Figure 3-3). Benchmarking is when a company analyzes its competitors to find best business procedures leading to best performance. Prentice-Hall International, Inc. London. The questions were based on operationalizations of various main blocks of the IEM. Chapter 1 : The Context of the Forest Industry and its Markets, Chapter 2: Understanding Forest Products Marketing, Chapter 3: The Marketing Environment, an Information Approach, Chapter 4: Strategy and Strategic Planning, Chapter 7: Putting together a Marketing Plan. The list describes the order of importance of competitor information according to the business information specialists of the Finnish paper and paperboard industry: Based on the opinions of those responsible for market information both in the Finnish paper and wood industries, competitor information is as important as demand and supply information. As marketing of forest products has become more customer-oriented, grades and end-uses of products have become more sophisticated. This chapter provides some examples of market information sources that are especially relevant to the context of markets in the United States. Knowledge management has been defined in various ways in the literature, but most definitions contain several common factors, including: Information technology provides a pipeline and storage system for the exchange of knowledge. In fact, they recommend that the list should be limited to approximately eight key points. The industrial market (business-to-business, B2B) consists of all those organizations that acquire goods and services that are used to produce other products or services that are sold to others. According to Webster there are three distinct elements of the environment that are relevant for the marketing strategist: Intuitively, it is clear that a company that knows more about the market environment, its customers, and its competitors, will perform better. It may also include indicators of technological development, technological changes, and opportunities for innovation. However, the SWOT analysis is only as good as the information used in it. A sister publication, Building Products Digest focuses on the eastern US, Various journals such as: National Hardwood Magazine, Softwood Forest Products Buyer, and Import/Export Wood Purchasing News, Covers structural and non-structural panels. In our current, information-rich society, the business environment is changing at an accelerating rate. These capital requirements might be for items beyond plant and equipment, such as customer credit and inventories. At the end of the chapter we present an example how to use the IEM and how a separate frame of customer behavior is connected to it. The measures of this separate frame show exactly what information about customers will be produced. The above list shows that in planning B2B marketing of paper, the end uses of the products and requirements of both industrial customers and final consumers are the most important pieces of information. Kotler, P. 2000. In any case the measurements above must be specified. The rankings of supply information reflect the nature of the markets. A directory of sawmills, panel mills, some secondary wood products, and wholesalers. Michael Porter is perhaps the most well known advocate of competition-oriented strategic planning. Buyers are especially powerful when the following conditions are present: The bargaining power of suppliers largely parallels the power of the buyer, though in the opposite direction. The nature and content of the Information Environment Model and its relationship to the Integrated Model of Marketing Planning. Harvard Business School Press. Multiple directories softwood producers, hardwood producers, exporters, etc. Key demand drivers for paper products in a certain market area include: For marketing planning purposes, demand can be measured as follows: Generally speaking, information concerning demand is very important in marketing planning for both paper and wood products. Those parts of the environment that cannot be influenced by the firm (economic, political, social and legal forces), Competition within the markets selected by the company. The unit size, especially of paper companies, has increased dramatically and the number of players in the marketplace has decreased. Johnson, G. and K. Scholes. The reason for this may be that construction, which is the biggest end-use area of wood industry products, is heavily regulated in all developed markets. There are few suppliers and the supplying industry is more concentrated than the industry to which it sells. The supplier has the ability to integrate forward. The type of information most critical in this dynamic environment is information about change change in the environment, change among competitors, change in customer behavior, and so forth. Thus, softwood lumber manufacturers that wish to gain market share cannot rely on the growth of the marketplace, they must go and take share from the competition. The blocks to the left from Buying Center in the frame of reference describe factors having an impact on decisions made by people in the buying center. His concepts became popular after the post-World War II economic boom, when inflation in developed nations was a significant problem and economic growth was very low. Information dealing with both Macro and Micro Environments is needed for strategic marketing decisions. Earlier we explained how strategy approaches such as Porter are based mainly on competitor information. 1998. In the wood industries information concerning distribution systems is considered clearly more important than in paper industries. The model has been created, tested, and used in numerous market analyses, both at the University and company level. Third Edition. Opportunities and threats are part of the external environment and reflect market attractiveness. Environmental consciousness and public opinion in society as well as pressure groups that influence company operations are examples of the social environment. How can efficient management of information and knowledge lead to enhanced performance and competitive advantage? Most sectors of the forest industry are mature, with relatively low growth rates, which results in high levels of competition and rivalry. Slow industry growth companies must steal market share from competitors rather than relying on overall market growth. In strategic marketing planning, the market analyst must have information about the available distribution structure to make good marketing channel decisions. This could result from specialized or high value assets such as those in the paper sector. Decisions concerning marketing channel structure are often made at a corporate level to encompass the whole company, particularly where the company is creating its own sales network, including sales companies. Demand is directly dependent upon price. Some industries are known to be more highly competitive than others. The time horizons, especially of the paper business, have shortened resulting in an emphasis on medium-term supply information. Access to Distribution Channels intermediaries may be hesitant to carry products from new entrants. Further analysis of opportunities and threats can be done by comparing, for example, the attractiveness of an opportunity with the probability of success in exploiting that opportunity. It has served as a frame of reference for market environment analyses supporting the marketing development projects of Finnish forest industry companies. Capacity increases come in large increments capacity is often added in large increments, requiring a high level of investment and contributing to high fixed costs in the paper sector. Strategic planning in this situation typically emphasizes product and market decisions. In the following sections, we provide an example of how the elements in the IEM can be measured. Note that there are numerous ways to measure the model, and the most appropriate method will depend on the context of the specific planning situation. He has had a dramatic impact on the study and understanding of strategy during the last three decades. That is our aim in the following sections.
SWOT helps to draw the conclusions based on that information. Kettunen, N. 2006.  Note that the need or desire to buy does not constitute demand both willingness and ability to buy must be present.
1999. This is in accordance with what we outlined in section 3.1.1 regarding the changing focus of marketing. Marketing channels of a business unit must be adjusted to the marketing channel structure of the whole company instead of making independent channel decisions. Efficient management of information and knowledge can lead to enhanced performance and competitive advantage. Various information blocks in the model are emphasized depending on the planning situation. When demand is growing fast, companies may have little interest in customer or competitor behavior. The order of importance is nearly the same in the paper and wood industries. Cost Disadvantages Independent of Scale patents or other forms of proprietary technology, access to raw materials, and company location can all impact the relative advantage open to a potential entrant. GDP and its development is an example of the economic environment. How do changes in marketing practice change the relative importance of different types of information to the marketing manager? Information concerning the Micro Environment is a major factor when planning marketing structures, functions, and action plans. For example, if marketing planning were dealing with distribution issues, Industrial customer requirements for distribution could be further specified as follows: In this example the opportunities to develop marketing of sawn timber in the UK market are examined. Each country (or market area) has its own typical internal distribution structure (or system), normally divided into wholesale and retail levels. Measurement must be conducted with the aim of answering the questions raised in marketing planning. Intensifying competition also requires advanced marketing. same markets. Hence, continuous monitoring of the environment is necessary in order to modify and update strategies. Those conducting marketing planning are mainly interested in demand and supply figures. Marketing Management, The Millennium Edition.
In large forest industry (paper industry) companies, the logistics department takes care of all transportation issues in the company and marketing people have very little involvement.