Profit Impact of Marketing Strategy (PIMS)

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Definition: Profit Impact of Marketing Strategy (PIMS)

Profit Impact of Marketing Strategy or PIMS is an ongoing study of strategies that drive business profitability, cash flows, and revenues and help companies gaining and sustaining competitive advantage in the industry.

It is quite an in-depth study carried out my companies and cover several concepts and issues before a company comes out with PIMS. The study helps a company to identify and quantify several variables like market share, profit share, product quality, investment and service quality etc. After the study is carried out and after the findings of the study the company can know what strategy to adopt so that it earns profits out of it. PIMS is carried out as a US research service of 3000 business units of 500 firms. These studies are documented and the findings are kept in a record.


PIMS seeks to address some of the basic things in a comprehensive way. The things which it seeks to address are that of the company’s strategy and what is its future operations will likely be. It addresses how the profit is driven in a company and what is its profit rate. It also suggests how the companies can improve its strategies in order to stay competitively ahead in the market.


PIMS is also being criticised by many people and organisations alike. They say that this study was carried out on the 500 firms which are hugely traditional industries. Also, the critique suggest that the data is quite old and was carried out on only big companies and left out the old companies. They claim that not always high market shares translates into high profit margins. Though there are critiques PIMS study still stands the test of time.



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