Beyond Surveillance Data Control and BodyCameras Joh, .docx

Beyond Surveillance: Data Control and Body
Cameras
Joh, Elizabeth E . Surveillance & Society ; Kingston
Vol. 14, Iss. 1, (2016): 133-137.
ProQuest document link
ABSTRACT (ENGLISH)
At a critical moment in American policing, we have embraced
body-worn cameras as a tool of police reform and
accountability. After the 2014 fatal shooting of Michael Brown
in Ferguson, Missouri, as well as other controversial
deaths of African-Americans at the hands of officers, American
police have drawn intense public scrutiny (Lauter
and Pearce 2015). While some proposed police reforms in
response to these deaths have been controversial,
lawmakers, police chiefs, and activists alike have supported
police adoption of body-worn cameras (Elinson 2015).
Yet a February 2016 study found that only nine states had any
explicit guidelines on how body-worn cameras
should be used (Urban Institute 2016). Body-worn cameras
collect video data -- lots of it -- and as a result, civil

liberties groups and scholars have raised questions about
increased government surveillance. But the potential
use of these cameras as surveillance tools, while an important
concern, ignores an equally pressing problem.
FULL TEXT
Introduction
At a critical moment in American policing, we have embraced
body-worn cameras as a tool of police reform and
accountability. After the 2014 fatal shooting of Michael Brown
in Ferguson, Missouri, as well as other controversial
deaths of African-Americans at the hands of officers, American
police have drawn intense public scrutiny (Lauter
and Pearce 2015). While some proposed police reforms in
response to these deaths have been controversial,
lawmakers, police chiefs, and activists alike have supported
police adoption of body-worn cameras (Elinson 2015).
Of seventy large U.S. police departments recently surveyed,
ninety-five per cent responded that they had or were in
the process of adopting body-worn cameras (Maciag 2016). In
May 2015, the U.S. Department of Justice
announced the availability of $20 million for local police
departments to adopt these cameras (Berman 2015).

Without a doubt, police body cameras "are here to stay"
(Hermann and Weiner 2014).
But this rapid adoption has come with a cost. Before 2015, only
four states had passed any laws regarding police
body-worn cameras; by 2015, a majority of them had done so
(NCSL 2015). Yet a February 2016 study found that
only nine states had any explicit guidelines on how body-worn
cameras should be used (Urban Institute 2016).
Body-worn cameras collect video data-lots of it-and as a result,
civil liberties groups and scholars have raised
questions about increased government surveillance. But the
potential use of these cameras as surveillance tools,
while an important concern, ignores an equally pressing
problem.
In our big data age, "seeing, monitoring, and recording the
digital footprints is quite different from sharing,
releasing, revealing or publicizing the data" (Harcourt 2015).
Police body camera policies must address not only
concerns about surveillance, but also data control. The absence
of clear data control policies will result in
confusion, both for the police and the public, about who has
access to see, share, and delete data produced from

body-worn cameras. And without strong presumptions in favor
of sharing the data with the public, the reform,
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accountability, and legitimacy potential of body worn cameras
will go unfulfilled.
Who controls the data?
The regulation of new police surveillance technologies-of which
body-worn cameras are only one example-must
address data control: the conditions of its production, analysis,
storage, and access. Pervasive data collection of
personal information, whether by government agencies or
private companies, is already a reality for most
Americans. Third parties use that data, once collected, to make
decisions about our consumption, health,
employability, and creditworthiness. Even the police rely on
data collected in private databases. In this way, the
information produced by police body cameras joins the data
trails already surrounding us. And body-worn camera
adoption by the police will likely only be a precursor to other
public officials (e.g. teachers) and private actors

(insurance adjustors) following suit (Maciag 2015; Mims 2015).
Matters of responsibility, innocence, and liability
will depend on who controls the data that can answer these
questions. Thus the "data fate" (Marx 2012) of the
information produced by these cameras will influence the use of
this technology well beyond policing.
What are the conditions of data production?
The very design of a police body-worn camera can influence the
resulting data (Kaste 2015). Seemingly mundane
questions of equipment design and cost can shape the
information produced. These important questions,
however, are dictated by private companies, not public
agencies. In the case of surveillance technologies, the
police are purchasers and consumers of third party products
(Joh 2016: 38). Two manufacturers, Taser and VieVu,
dominate the police-worn body camera market (Mearian 2015).
As a result, only two companies wield
disproportionate influence over the design of police body-worn
camera data collection and control.
Start with the recording decision. If a camera is only subject to
manual control, key discretionary decisions about

when and why to record are left up to the individual officer. A
failure to record may be the result of accident, stress,
or deliberate misconduct. An affirmative decision to record
might be a legitimate attempt to enhance
accountability or, worse, to humiliate or invade privacy felt in
an intimate setting like a home. Any of these
outcomes are possible when the recording decision is left to the
individual officer. We could remove that
uncertainty through design (Stroud 2015). A different type of
camera could take the recording decision away from
the officer altogether, by livestreaming the video images to the
agency datacenter (Li 2014).
Next, a body-worn camera that records secretly does little to
foster trust in the police and may increase public
suspicion. A requirement that police provide a verbal warning
leaves notice up to officer discretion. A better
alternative or supplement would be "visceral notice" by design
(Calo 2012), such as a blinking red light, when a
camera is recording. Eliminating secret recording may increase
notice, but with other mixed results. Knowledge of
a police body camera in operation may discourage some people
from coming forward or inhibit how they speak to
the police. Yet a camera that can operate in "stealth mode" may
also foster public mistrust. These design details

affect the ultimate production of the data, and yet few have
recognized their significance. Moreover, if these
design elements influence data production, the input should
come from the public, and not only corporate interests
and the police.
How will the data be stored?
Those police departments that have already adopted body-worn
cameras report that vast amounts of data result
from even limited amounts of camera use. By one estimate,
some large police departments are producing more
than 10,000 hours of video data a week (Sanburn 2016). This
amount of data created is often beyond the capacity
of most conventional police departments to store themselves.
To meet these needs, private companies offer data storage
services-sometimes the very same companies that
supply the cameras. This third party storage is costly: in fact, it
is often the most expensive part of police body-
worn camera programs. Profit margins are much higher for
video storage than they are for the cameras

themselves (Mearian 2015). Indeed, data storage costs are
sometimes cited as a reason why police departments
may be reluctant to adopt body-worn cameras at all (Ryan
2016). Thus data storage costs may be an unrecognized
factor that influences decisions about which kinds of incidents
officers will record in the first place.
No matter where police body-worn camera data is stored, there
remain questions of when data should be deleted.
Here the values of privacy and accountability may lie in
tension. The few states that have addressed body-worn
camera video storage limits have generally erred on the side of
limiting video storage unless it is involved in a
criminal investigation (Urban Institute 2016). Shorter storage
times means there is less data (of the innocent as
well as the guilty) available for inspection and analysis. Yet
longer data storage periods may enhance public
accountability if it means that the public-citizens, journalists,
and researchers-can access video that can illuminate
individual cases as well as general policing practices.
How will the data be processed?
In the age of big data, digital information once collected may be
endlessly analyzed, sifted, and sorted for different

purposes (Mayer-Schönberger and Cukier 2013: 122). Facebook
sends targeted advertising to its users based on
their posts. Tinder, the dating app, now matches its users to
presidential candidates (Opam 2016). The data
captured by police body-worn cameras will likewise be subject
to the same analysis and reuse.
The data collected by body-worn cameras could be subjected to
various software applications that would further
law enforcement interests, not accountability concerns. Body-
worn cameras could incorporate license plate reader
or facial recognition technology. Adoption of these technologies
raises distinct questions of police discretion and
policy. To what ends should a body-worn camera equipped with
facial recognition technology be used? Most
people will probably agree that the police should be able to
identify those suspected of "serious" crimes, but is
there a lower limit? Should police be able to use these cameras
to identify, for instance, those persons delinquent
on property taxes (Clift 2015)?
How will the data be shared?
Body-worn cameras have been touted as tools of police reform,

but if the resulting data is secret, reform is
impossible. Consider the fatal shooting of 17-year-old Laquan
McDonald, shot 16 times by Chicago Police in 2014.
Even after journalists raised repeated questions about the
circumstances of the shooting, the city refused to
release the video of the shooting for 13 months, until forced to
by a judge's order. Cook County State's Attorney
Anita Alvarez had taken no action in the case until, on the day
of the video's release, she announced first degree
murder charges against Officer Jason Van Dyke for his role in
McDonald's death (Glenza 2016). Within days, Mayor
Rahm Emanuel fired Police Superintendent Garry McCarthy.
Heavily criticized for her inaction until the release of
the video, Alvarez lost a primary challenge shortly thereafter
(Davey 2016). As the McDonald case shows, it is data
control as much as collection that will matter in the use of
police body-worn cameras.
Yet departments around the U.S. have not yet developed clear
policies about data sharing. Some departments
have adopted internal policies restricting public access to body-
worn camera video, while some state and local
governments are considering legislative measures to do the
same (Hermann and Davis 2015). Nearly every state

has law enforcement exemptions to public records requests;
these may be invoked to bar most public access to
data created by police body cameras (Urban Institute 2016). At
the other end of the spectrum, the Seattle Police
Department has posted videos taken during its body-worn
camera pilot project on YouTube, with sensitive images
blurred (Kravets 2015).
National questions, local responses
Most of the wide variation in data control policies can be
explained by the highly decentralized nature of American
policing. Instead of a national police force, American policing
is represented by the approximately 18,000 state and
local agencies that assume responsibility for policing (Bureau
of Justice Statistics 2011). Consequently, it is nearly
impossible for uniform policies to be imposed upon such a large
number of distinct police departments. And for
some, that variation is desirable. The President's Task Force on
21st Century Policing, for instance, emphasizes
that the implementation of new technologies, including body-
worn cameras, "should remain a local decision to
address the needs and resources of the community" (President's

Task Force 2015: 35).
Will the surveillance and privacy implications of police body-
worn cameras be worth any increase in
accountability? The answer, as I have suggested here, depends
greatly on questions of data control. While
systematic monitoring alone can affect one's behavior, equally
important are unresolved questions of how any
resulting data is stored, analyzed, and shared. Collected data
presents the danger of an endless surveillance loop:
monitoring that results in data that justifies even more
monitoring. And as this response has suggested, these
questions will apply with equal force to every new technology
the police adopt to collect information.
Who has power over "controlling the data flows" is the ultimate
political question that attends body-worn camera
adoption by the police (Harcourt 2015). Yet in the rush to
respond to calls for greater police accountability, many
American police departments lack consistent, clear, or-in some
cases-any, formal policies regarding how to control
that data. Without clear limits, body-worn cameras may become
just another tool for law enforcement rather than
a mechanism for police accountability.

References
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AuthorAffiliation
Elizabeth E. Joh
University of California, Davis School of Law, US.
[email protected]
DETAILS
Subject: Surveillance; Activism; Black Americans; Reform;

Police; Civil rights; Police
community relations; Accountability; Law enforcement;
Privacy; Public access; Data
collection; Camcorders
Location: United States--US
People: Brown, Michael
Classification: 1653: social control; police, penology,
&correctional problems
Publication title: Surveillance &Society; Kingston
Volume: 14
Issue: 1
Pages: 133-137
Number of pages: 5
Publication year: 2016
Publication date: 2016
LINKS
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Section: Debate
Publisher: Surveillance Studies Network
Place of publication: Kingston
Country of publication: United Kingdom, Kingston
Publication subject: Social Sciences: Comprehensive Works
ISSN: 14777487
Source type: Scholarly Journals
Language of publication: English
Document type: Journal Article
Document feature: References
DOI: http://dx.doi.org/10.24908/ss.v14i1.6286
ProQuest document ID: 1802200640
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Last updated: 2018-09-06

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Surveillance: Data Control and Body Cameras
Market-Driven Strategy
Chapter 01
Market-driven strategy
Corporate, business, and marketing strategy
Challenges of a new era for strategic marketing
Learning Objectives
1-‹#›

Characteristics of market-driven strategies
Classifying capabilities
Creating value for customers
Becoming customer driven
Market-Driven Strategy
1-‹#›
Becoming market oriented
Customer focus
Competitor intelligence
Cross-functional coordination
Performance implications
Determining distinctive capabilities
Characteristics of Market-Driven Strategies
1-‹#›
Exhibit 1.3 – Classifying Capabilities
Source: Chart from George S. Day, “The Capabilities of
Market-Driven Organizations,” Journal of Marketing, October
1994, 41. Reprinted with permission of the American Marketing
Association.
1-‹#›

Value for buyers consists of the benefits and costs resulting
from the purchase and use of products
Value is perceived by the buyer
Capabilities and Customer Value
1-‹#›
Customer lifetime value (CLV)
Provides a long-term measure of the future profits generated by
a customer, adjusted based on the time value of money
Customer satisfaction
Indicates how well the product use experience compares to the
buyer’s value expectations
Creating Value for Customers
1-‹#›
A customer-driven organization must identify:
Which capabilities to develop
Which investment commitments to make
Becoming Customer Driven
1-‹#›
Becoming Customer Driven
Market Sensing Capabilities
Involve more than collecting information
Must be interpreted to determine what actions need to be

initiated
Customer Linking Capabilities
Offer advantages to both buyer and seller through information
sharing and collaboration
Reduce the possibility of a customer shifting to another supplier
Aligning Structure and Processes
Require changing the design of the organization
Require cross-functional coordination and involvement
1-‹#›
Corporate, business, and marketing strategy
Components of corporate strategy
Corporate strategy framework
Business and marketing strategy
The marketing strategy process
Corporate, Business, and Marketing Strategy
1-‹#›
Choosing high performance strategies in this environment
requires:
Vision
Sound strategic logic
Commitment
Corporate, Business, and Marketing Strategy
1-‹#›

Exhibit 1.4 - Corporate, Business,
and Marketing Strategy
1-‹#›
Exhibit 1.5 - Components of
Corporate Strategy
Resource allocation addresses the division of limited resources
across businesses and opportunities.
Scope is concerned with resolving questions about the business
the firm should be in, where it should focus, and its enduring
strategic purpose.
Corporate objectives indicate the dimensions of performance
upon which to focus and the levels of achievement required.
Corporate strategies are concerned with how the company can
achieve its growth objectives in current or new business areas.
Synergies highlight competencies, resources, and capabilities
that drive efficiency and effectiveness in the business.
1-‹#›
Useful basis for examining corporate strategy consists of:
Management’s long-term vision for the corporation
Objectives that serve as milestones toward the vision

Resources
Businesses in which the corporation competes
Structure, systems, and processes
Gaining corporate advantage through multimarket activity
Corporate Strategy Framework
1-‹#›
Strategy paradigms propose:
Re-engineering the corporation
Total quality management
Building distinctive competencies
Reinventing the organization
Supply chain strategy
Strategic partnering
Business and Marketing Strategy
1-‹#›
The chief marketing executive’s business strategy
responsibilities include:
Participating in strategy formulation
Developing marketing strategies that are:
Consistent with business strategy priorities
Integrated with other functional strategies
Business and Marketing Strategy Relationships
1-‹#›

1-‹#›
Strategic Marketing
A market-driven process of strategy development, taking into
account a constantly changing business environment and the
need to deliver superior customer value
Exhibit 1.6 - Marketing Strategy
Process
1-‹#›
Activities include:
Markets and competitive space
Strategic market segmentation
Strategic customer relationship management
Capabilities for continuous learning about markets
Markets, Segments, and Customer Value

1-‹#›
Identify market opportunities
Define market segments
Evaluate competition
Assess the organization’s strengths and weaknesses
Strategies include:
Market targeting and strategic positioning
Strategic relationships
Innovation and new product strategy
Designing Market-Driven Strategies
1-‹#›
Marketing program (mix) strategies implement:
Strategic brand management
Value-chain strategy
Pricing strategy
Promotion strategy
Market-Driven Program Development
1-‹#›
Designing market-driven organizations
Marketing strategy implementation and control
Preparing the marketing plan and budget
Implementing the plan
Using the plan in managing and controlling the strategy on an

ongoing basis
Implementing and Managing Market-Driven Strategy
1-‹#›
Escalating globalization
Technology diversity and uncertainty
Internet dynamics
Ethical behavior and corporate social responsiveness
Challenges of a New Era for Strategic Marketing
1-‹#›
Strategic Customer Management: Systems, Ethics, and Social
Responsibility
Chapter 04
Pivotal role of customer relationship management
Developing a CRM strategy
Value creation process
CRM and strategic marketing

Ethics and social responsibility in strategic marketing
Learning Objectives
4-‹#›
CRM in perspective
CRM and database marketing
Customer lifetime value
Pivotal Role of Customer Relationship Management
4-‹#›
Seen as little more than building relationships with customers
To match a company’s product offer better with customer needs
Seen as developing a unified and cohesive view of the customer
Without regard to how the customer chooses to communicate
with the organization
CRM in Perspective
4-‹#›
Seen as consisting of three main elements:
Identifying, satisfying, retaining, and maximizing the value of a
firm’s best customers
Wrapping the firm around the customer to ensure that each
contact with the customer is appropriate
Creating a full picture of the customer

CRM in Perspective
4-‹#›
Database created through CRM technology should contain
information about:
Transactions
Customer contacts
Descriptive information
Response to marketing stimuli
CRM and Database Marketing
4-‹#›
Calculates past profit produced by the customer for the firm
which is:
The sum of all the margins of all the products purchased over
time, less the cost of reaching that customer
Add a forecast of margins on future purchases discounted back
to their present value
Customer Lifetime Value
4-‹#›
CRM levels
CRM strategy development
CRM implementation
Developing a CRM Strategy

4-‹#›
Levels from which CRM can be viewed:
Company-wide
Provides a strategic focus for CRM
Customer-facing
Offers single view of the customer across all of the
organization’s access channels to the customer
Functional
Considers the processes that are needed to fulfill required
marketing functions
CRM Levels
4-‹#›
Major steps in developing a CRM strategy:
Organizational commitment to CRM
The project team
Business needs analysis
The CRM strategy
CRM Strategy Development
4-‹#›
Exhibit 4.1 - The Steps in Developing a CRM Strategy
4-‹#›

Exhibit 4.2 - Develop and Define the CRM Strategy to Guide
the Management Process
4-‹#›
Front office that integrates sales, marketing, and service
functions across all media
A data warehouse that:
Stores customer information and the appropriate analytical tools
with which to:
Analyze that data and learn about customer behavior
Successful Implementation
4-‹#›
Business rules developed from the data analysis
Measures of performance that enable customer relationships to
continually improve
Integration into the firm’s operational support systems, ensuring
the front office’s promises are delivered
Successful Implementation
4-‹#›
Implementing CRM before creating a customer strategy
Putting CRM in place before changing the organization to match
Assuming that more CRM technology is necessarily better

Investing in building relationships with disinterested customers
Causes of Failure
4-‹#›
Customer value
Value received by the organization
CRM and value chain strategy
Value Creation Process
4-‹#›
Defined as:
The value the customer receives
The value the organization receives
Value Creation Process
4-‹#›
Value proposition - Expresses the benefits received by the
customer
Explains the relationship among:
The performance of the product
The fulfillment of the customer’s needs
The total cost to the customer over the customer relationship
life cycle
Customer Value

4-‹#›
Customer lifetime value (CLV) - A key concept associated with
the value received by the organization
Expected profitability of a customer over the time-span of the
relationship with the customer
Value Received by the Organization
4-‹#›
Important that CRM be integrated with the different channels
that access end-user customers
Many companies interact with customers using multiple
channels including:
Salespeople
Value chain partners
Email and Internet
Telephoning
Direct marketing
CRM and Value Chain Strategy
4-‹#›
Implementation
Performance metrics
Short-term versus long-term value
Competitive differentiation
CRM and Strategic Marketing

4-‹#›
Implementation - Critical to view this as more than technology
focused on efficiency
Performance metrics
Sales, profitability, and market share
Customer acquisition cost
Conversion rates (from lookers to buyers)
Retention/Churn rates
Same customer sales rates
Loyalty measures
Customer “share of wallet”
4-‹#›
Short-term versus long-term value
Long-term issues should be considered when:
Decisions are made about a company’s customer priorities using
historical customer profitability
Customer lifetime value - An attractive measure to use to
examine long-term customer attractiveness
4-‹#›
Competitive differentiation
Lack of competitive advantage - Requires more than just
investment in CRM technology

Particularly if it is poorly implemented
Information-based competitive advantage - The creation of a
major new source of knowledge about customers
4-‹#›
Corporate reputation
Customer value and competitive positioning
Ethics and Social Responsibility in Strategic Marketing
4-‹#›
Increasingly significant to the creation of effective customer
relationships
In part because of the impact on corporate reputation
Ethics and Social Responsibility in Strategic Marketing
4-‹#›
Damage to corporate reputation of a business can:
Substantially reduce its ability to compete
Undermine the value of a company
Strength or weakness of an organization’s corporate reputation
impacts:
Customer perceptions of how attractive it is to do business with
that company

Corporate Reputation
4-‹#›
Ethical imperatives
Defining ethical standards
Business ethics
Marketing ethics
Drivers of ethical demands
Green and ethical consumer
Ethical consumerism
4-‹#›
Proactive responses by firms - Trends that are indicative of the
relevance of ethics and CSR in firms
Establishment of ethics executives
Codes of ethics and internal procedures to provide a framework
for ethics actions
4-‹#›
Organizational involvement - Includes:
Favorable organization culture
Assignment of responsibility
Ethics codes

Operating processes/guidelines
Action
Monitoring and control
Corporate social responsibility initiatives
Spans economic, legal, ethical, and philanthropic concerns by
an organization and its stakeholders
4-‹#›
Defining CSR - Understood to encompass company activities
that
Integrate social and environmental concerns into business
operations
Into the company’s interaction with other stakeholders, on a
voluntary basis
Drivers of CSR:
Defensive CSR
Strategic CSR
Creating shared value
4-‹#›
Escalating transparency - Underlines the importance of CSR to
a company’s competitive position with customers
Customer Value and Competitive Positioning
4-‹#›

Strategic Market Segmentation
Chapter 03
Levels and types of market segmentation
Market-driven strategy and segmentation
Activities and decisions in market segmentation
Defining the market to be segmented
Identifying market segments
Forming market segments
Finer segmentation strategies
Selecting the segmentation strategy
Learning Objectives
3-‹#›
Exhibit 3.1 - Levels of Market
Segmentation
3-‹#›
Market segmentation, value opportunities and new market space
Market targeting and strategic positioning
Market-Driven Strategy and Segmentation

3-‹#›
Exhibit 3.2 - Segmentation in
the Market-Driven Strategy Process
3-‹#›
Market segmentation - Placing the buyers in a product-market
into subgroups
Examining specific market segments helps to identify how to:
Attain a closer match between buyers’ value preferences and the
organization’s capabilities
Compare the organization’s strengths (and weaknesses) to the
key competitors in each segment
Market Segmentation, Value Opportunities and New Market
Space
3-‹#›
Market targeting consists of:
Evaluating and selecting one or more segments whose value
requirements provide a good match with the organization’s
capabilities
Market Targeting

3-‹#›
Positioning strategy - Combination of actions management takes
to meet needs and wants of each market target
Consists of:
Product(s) and supporting services
Distribution
Pricing
Promotion components
Strategic Positioning
3-‹#›
Exhibit 3.3 - Activities and
Decisions in Market Segmentation
3-‹#›
Important consideration in defining market to be segmented is:
Estimating variation in buyers’ needs and requirements at
different product-market levels
Identifying the types of buyers included in the market
Defining the Market to be Segmented
3-‹#›

Exhibit 3.4 - Market Segmentation
in the Health and Beauty Supplies Market
3-‹#›
Segmentation variables
Characteristics of people and organizations
Product use situation segmentation
Buyers’ needs and preferences
Purchase behavior
Identifying Market Segments
3-‹#›
One or more variables may be used to divide the product-market
into segments
Demographic and psychographic
Use situation
Needs and preferences
Purchase-behavior
Segmentation Variables
3-‹#›

Consumer markets - Characteristics of people fall into two
major categories:
Geographic and demographic
Psychographic
Organizational segmentation is aided by examining:
The extent of market concentration
The degree of product customization
Characteristics of People and Organizations
3-‹#›
Markets can be segmented based on how the product is used
Needs and preferences vary according to different use situations
Mass customization offers a promising means of responding to
different use situations at competitive prices
Product Use Situation Segmentation
3-‹#›
Needs and preferences specific to products and brands can be
used as segmentation bases and segment descriptors
For example:
Loyalty status
Benefits sought
Proneness to make a deal
Buyers’ Needs and Preferences

3-‹#›
Consumer needs
Physiological needs
Need for safety
Need for relationships with other people
Personal satisfaction needs
3-‹#›
Understanding the nature and intensity of needs is important in:
Determining how well a particular brand may satisfy the need
Indicating what change(s) in the brand may be necessary to
provide a better solution to the buyer’s needs
3-‹#›
Attitudes
Enduring systems of favorable or unfavorable evaluations about
brands
Reflect the buyer’s overall liking or preference for a brand
May develop from:
Personal experience
Interactions with other buyers
Marketing efforts

3-‹#›
Perceptions
Process by which an individual selects, organizes, and interprets
information inputs to create a meaningful picture of the world
People perceive things differently
3-‹#›
Consumption variables useful in segmenting consumer and
business markets
Level of product use may not necessarily identify the best value
opportunities
Useful to classify buying decisions according to:
Their characteristics
Products to which they apply
Marketing strategy implications of each type of purchase
behavior
Purchase Behavior
3-‹#›
Exhibit 3.6 - Consumer
Involvement in Purchase Decisions
Source: Eric N. Berkowitz, Roger A. Kerin, Steven W. Hartley,

and William Rudelius, Marketing, 5th ed. (Chicago: Richard D.
Irwin, 1997), 156. Copyright © The McGraw- Hill Companies.
Used with permission.
3-‹#›
Exhibit 3.7 - Illustrative
Segmentation Variables
Source: Eric N. Berkowitz, Steven W. Hartley, William
Rudelius, and Roger A. Kerin, Marketing, 7th ed. (Burr Ridge,
IL: McGraw-Hill/Irwin, 2003).
3-‹#›
Requirements for segmentation
Approaches to segment identification
Customer group identification
Forming groups based on response differences
Forming Market Segments
3-‹#›
Useful criteria for evaluating a potential segmentation strategy:
Response differences
Identifiable segments
Actionable segments
Cost/benefits of segmentation

Stability over time
Product differentiation and market segmentation
Requirements for Segmentation
3-‹#›
Exhibit 3.8 – Approaches to Segment Identification
3-‹#›
Necessary to select one or more of the characteristics of people
or organizations as the basis of segmentation
Segments are formed by:
Management judgment and experience
Supporting statistical analyses
Customer Group Identification
3-‹#›
Exhibit 3.9 - Product-Market Segmentation Dimensions for
Hotel Lodging Services
3-‹#›

Management’s knowledge of customer needs is a useful guide to
segmentation
Business segment variables include:
Type of industry
Size of purchase
Product application
Management Insight and Available Information
3-‹#›
Identify customer groups using descriptive characteristics
Compare response rates by placing the information in a table
Cross Classification Analyses
3-‹#›
Useful in consumer market segmentation
Databases are organized by geography and buyers’ descriptive
characteristics
Can be used to identify:
Customer groups
Design effective marketing programs
Improve the effectiveness of existing programs
Data Mining for Segmentation

3-‹#›
Important to recognize that segmentation has an international
dimension in many markets
At the simplest level, country differences may dictate the need
for variations in the sizes of products
Segmentation Illustrations
3-‹#›
Alternative to selecting customer groups based on descriptive
characteristics:
Identify groups of buyers by using response differences to form
the segments
Segments vary in responsiveness based on:
Relative price
Relative service
Forming Groups Based on Response Differences
3-‹#›
Cluster analysis
Groups people according to the similarity of their answers to
questions
Perceptual maps
Uses consumer research data to construct perceptual maps of
buyers’ perceptions of products and brands

Forming Groups Based on Response Differences
3-‹#›
Exhibit 3.11 - Consumer Perception Mapping Illustration
3-‹#›
Logic of finer segments
Finer segmentation strategies
Finer Segmentation Strategies
3-‹#›
Factors add up to the benefits of considering very small
segments
The capabilities of companies to offer cost effective,
customized offerings
The desires of buyers for highly customized products
The organizational advantages of close customer relationships
Logic of Finer Segments
3-‹#›

Microsegmentation
Seeks to identify narrowly defined segments using one or more
of the previously discussed segmentation variables
Mass customization
Provides customized products at prices not much higher than
mass-produced items
Variety seeking
Intended to offer buyers opportunities to vary their choices in
contrast to making unique choices
3-‹#›
Finer segmentation issues
How much variety should be offered to buyers?
Will too much variety have negative effects on buyers?
Is it possible to increase buyers’ desire for variety, creating a
competitive advantage?
What processes should be used to learn about customer
preferences?
3-‹#›
Deciding how to segment
Strategic analysis of market segments
Selecting the Segmentation Strategy
3-‹#›

Choice of a segmentation method depends on:
The maturity of market
The competitive structure
The organization’s experience in the market
Deciding How to Segment
3-‹#›
Each market segment of interest needs to be studied to
determine its potential attractiveness as a market target
Major areas of analysis:
Customers
Competitors
Positioning strategy
Financial and market attractiveness
Strategic Analysis of Market Segments
3-‹#›
Important aspect of evaluating segment attractiveness
How well the segments match company capabilities
The ability to implement marketing strategies around those
segments
Segment “Fit” and Implementation
3-‹#›

Markets and Competitive Space
Chapter 02
Markets and strategies
Matching needs with product benefits
Defining and analyzing product-markets
Describing and analyzing end-users
Analyzing competition
Market size estimation
Developing a strategic vision about the future
Learning Objectives
2-‹#›
Markets and strategies are interlinked
An array of challenges
Markets and Strategies
2-‹#›
Challenges:
Markets are increasingly complex, turbulent, and interrelated
Need for a broader view of the market
Essential to develop a vision about markets are likely to change

Continuous monitoring is necessary to:
Identify promising business opportunities
Assess the shifting requirements of buyers
Evaluate changes in competitive positioning
Markets and Strategies
2-‹#›
Market changes require altering business and marketing
strategies
Many forces are:
Causing the transformation of industries
Changing the structure of markets and nature of competition
Markets and Strategies are Interlinked
2-‹#›
These influences create market opportunities and threats by:
Altering the nature and scope of products, markets, and
competitive space
Markets and Strategies are Interlinked
2-‹#›
Exhibit 2.1 - Opportunities Outside the Competitive Box
2-‹#›

Disruptive innovation
Commoditization threats
Creating new market space
Fast-changing markets
An Array of Challenges
2-‹#›
Product-market recognizes that a market exists only when:
There are buyers with needs who have the ability to purchase
goods and services
Products are available to satisfy the needs
Matching Needs with Product Benefits
2-‹#›
Markets are comprised of groups of people who have:
The ability to buy something because they have a need for it
The willingness to buy something because they have a need for
it
Matching Needs with Product Benefits
2-‹#›
Determining product-market boundaries and structure

Forming product-markets
Illustrative product-market structure
Defining and Analyzing Product-Markets
2-‹#›
Exhibit 2.2 - Defining and Analyzing Product-Markets
2-‹#›
Product-market structure
Generic product-market
Broad group of products that satisfy a general, yet similar, need
Product-type product-market
Brands of a particular product type, such as ovens for use in
food preparation by consumers
Product-variants
Created by differences in the products within a product-type
product-market may exist
Determining Product-Market Boundaries and Structure
2-‹#›
Guidelines for definitions
The basis for identifying buyers in the product-market of
interest

The market size and characteristics
The brand and/or product categories competing for the needs
and wants of the buyers included in the product-market
Determining Product-Market Boundaries and Structure
2-‹#›
Exhibit 2.3 - Determining the
Composition of a Product-Market
2-‹#›
Includes:
Purpose of analysis
Changing composition of markets
Extent of market complexity
Functions
Technology
Customer segments
Forming Product-Markets
2-‹#›
Exhibit 2.4 - Illustrative Fast-Food Product-Market Structure

2-‹#›
Exhibit 2.5 - Illustrative Product-Market Structure
2-‹#›
Identifying and describing buyers
How buyers make choices
Environmental influences
Building customer profiles
Describing and Analyzing End-Users
2-‹#›
Characteristics such as family size, age, income, geographical
location, sex, and occupation
Illustrative factors such as type of industry, company size,
location, and types of products
Identifying and Describing Buyers
2-‹#›

Steps in the buying process:
Recognize a need
Seek information
Identify and evaluate alternative products
Purchase a brand
How Buyers Make Choices
2-‹#›
External factors that influence buyers’ needs and wants:
Government, social change, economic shifts, and technology
Not controlled by the buyer or the firms that market the product
But they can have a major impact on purchasing decisions
Environmental Influences
2-‹#›
Begin with the generic product-market
Likely to describe the size and general composition of the
customer base
Product-type and variant profiles are more specific about
customer characteristics
Building Customer Profiles
2-‹#›

Defining the competitive arena
Key competitor analysis
Anticipating competitors’ actions
Analyzing Competition
2-‹#›
Exhibit 2.8 - Analyzing the Competition
2-‹#›
Exhibit 2.9 - Examples of Levels of Competition
2-‹#›
Two kinds of information are needed:
A descriptive profile of the industry
An analysis of the value chain channels that link together the
various organizations in the value-added system
The industry analysis includes:
Industry characteristics and trends
Operating practices of the firms in the industry
Industry Analysis
2-‹#›

Rivalry among existing firms
Threat of new entrants
Threat of substitute products
Bargaining power of suppliers
Bargaining power of buyers
Competitive Forces
2-‹#›
Exhibit 2.11 - Describing and Evaluating Key Competitors
2-‹#›
Estimating competitors’ future strategies
Identifying new competitors - Four major sources
Companies competing in a related product-market
Companies with related technologies
Companies already targeting similar customer groups with other
products
Companies competing in other geographical regions with
similar products
Anticipating Competitors’ Actions
2-‹#›

Market potential
Sales forecast
Market share
Evaluating market opportunity
Market Size Estimation
2-‹#›
Market potential - Maximum amount of product sales that can
be obtained from a defined product-market during a specified
time period
Sales forecast - Indicates the expected sales for a defined
product-market during a specified time period
2-‹#›
Market share of a firm - Determined by the company sales
divided by the total sales of all firms for a specified product-
market
Essentials in preparing forecasts to specify:
What is being forecast
Time period involved
Geographical area
Evaluating market opportunity
Projections of key competitors are useful in evaluating market
opportunities

2-‹#›
Exhibit 2.13 - Summary of Advantages and Disadvantages of
Various Sales Forecasting Techniques
Source: Mark W. Johnston and Greg W. Marshall, Sales Force
Management, 9th ed. (New York: McGraw-Hill/Irwin, 2009),
141.
2-‹#›
141.
2-‹#›
141.

2-‹#›
Phases of competition
Anticipating the future
Developing a Strategic Vision about the Future
2-‹#›
Phases of competition
Useful to distinguish between different phases in the
development of competition
Anticipating the future
Organizations that choose to invest substantial time and effort
in anticipating the future create an opportunity for competitive
advantage
Developing a Strategic Vision about the Future
2-‹#›
Exhibit 2.14 - Developing a Strategic Vision
2-‹#›

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