Skip to content
Product cover

Winning in Smart Markets

July 15, 1999 | Rashi Glazer | Marketing

Smart markets, or markets defined by frequent turnover in the general stock of knowledge or information embodied in products and possessed by competitors and consumers, are based on new kinds of products, competitors, and customers. As a result, companies seek to understand the degree to which their own capabilities and motivations as information-processing "organisms" are crucial in enabling them to extract maximum value from their customer information assets.

Firms that have gained a significant competitive advantage are distinguished by their ability to see beyond their IT infrastructure and view information itself as the core asset and the management of information as the company's main priority. Understanding how consumers are adapting their behavior to the demands of an increasingly information-intensive environment has been a starting point for companies that have achieved success in smart markets.

By observing the activities of these firms across industries, it is possible to identify generic strategies and develop a preliminary taxonomy, or categorization scheme, that can be used to compare and contrast them. The placement of individual strategies within a conceptual framework guides managers in making customer-management decisions.

The organizing tool, or asset around which the full range of strategies is based, is the customer information file (CIF) -- a single virtual database that captures all relevant information about a firm's customers. Underlying the notion of the CIF as the key asset is the assumption that the firm's operational goal is to maximize communication with its customers -- to look for every opportunity to "talk" with them. After all, the data collected from these interactions are the raw material from which companies craft their information-intensive strategies.

A company thus sets as its main objective the maximizing of returns to the CIF. It then chooses any one of several strategies to accomplish that objective. This approach represents a shift in performance goals. In particular, concepts such as profitability or market share per product are being replaced with concepts such as profitability per customer (sometimes referred to as "lifetime value of a customer") or customer share (the total share of a customer's purchases in a broadly defined product category).

Purchase Options

Educator and Student Discounts Available. Learn more »

  BENCHMARKS  
Loading Time: Base Classes  0.0006
My Controller Construct  0.0003
Build Nav  0.0007
Controller Execution Time ( Products / Route )  0.1021
Total Execution Time  0.1027
  GET DATA  
No GET data exists
  MEMORY USAGE  
1.5719 MB
  POST DATA  
No POST data exists
  URI STRING  
store/winning-in-smart-markets
  CLASS/METHOD  
products/route
  DATABASE:  MITSLOAN_DEV   QUERIES: 68  (Hide)
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0006  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0015  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0007  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0004  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0009  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0003  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0007  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0008  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0002  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0001  

SELECT *
FROM (`carts`)
WHERE `cart_id` =  '23397818d5c1fc638e75ea73c3d8f1b6'
ORDER BY `created_at` DESC 
0.0004  

SELECT SQL_CALC_FOUND_ROWS cat_id
FROM (`product_categories`)
WHERE `status_id` =  'A'
AND `url_friendly` =  'winning-in-smart-markets'
AND `parent_id` =  1 
0.0158  

SELECT c.parent_id, c.format_id
                    FROM products AS p, products AS c
                    WHERE p.prod_id = c.parent_id AND
                        c.avail_id IN ('A','B','D') AND
                        c.type_id = 'V' AND
                        (
                            c.sku = 'winning-in-smart-markets' OR
                            if(c.format_id = 'Certificate', '', p.url_friendly) = 'winning-in-smart-markets'
                        )
                    LIMIT 1 
0.0004  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  2195 
0.0007  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '2195' 
0.0008  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '2195'
ORDER BY `sort` ASC 
0.0002  

SELECT `cat_id`
FROM (`product_categories__products`)
WHERE `prod_id` =  '2195' 
0.0005  

SELECT *
FROM (`product_flags__products`)
WHERE `prod_id` =  '2195' 
0.0002  

SELECT `sku`
FROM (`products__xsell`)
WHERE `prod_id` =  '2195'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0354  

SELECT `products`.`parent_id`
FROM (`transaction_lines`)
JOIN `products` ON `products`.`sku` = `transaction_lines`.`sku`
JOIN `product_categories__products` ON `products`.`parent_id` = `product_categories__products`.`prod_id`
WHERE `products`.`avail_id` =  'A'
AND TO_DAYS(transaction_lines.updated_at) < (TO_DAYS(NOW()) - 90)
AND `product_categories__products`.`cat_id` IN ('247') 
GROUP BY `products`.`parent_id`
ORDER BY COUNT(*) DESC
LIMIT 6 
0.0003  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '1211' 
0.0013  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '1211' 
0.0040  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '1211'
ORDER BY `sort` ASC 
0.0022  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '305' 
0.0003  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '305' 
0.0002  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '305'
ORDER BY `sort` ASC 
0.0003  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '1325' 
0.0005  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '1325' 
0.0014  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '1325'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '523' 
0.0008  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '523' 
0.0005  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '523'
ORDER BY `sort` ASC 
0.0001  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '3987' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '3987' 
0.0003  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '3987'
ORDER BY `sort` ASC 
0.0006  

SELECT `parent_id`
FROM (`products`)
WHERE `prod_id` =  '339' 
0.0002  

SELECT *
FROM (`products`)
WHERE `products`.`prod_id` =  '339' 
0.0010  

SELECT *
FROM (`authors`)
JOIN `products__authors` ON `authors`.`author_id` = `products__authors`.`author_id`
WHERE `products__authors`.`prod_id` =  '339'
ORDER BY `sort` ASC 
0.0009  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2195'
AND `kind` =  'image_600x600'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0008  

SELECT *
FROM (`media`)
WHERE `media`.`media_id` =  '985' 
0.0002  

SELECT *
FROM (`mime_types`)
WHERE `mime_types`.`extension` =  'jpg' 
0.0002  

SELECT *
FROM (`media_metadata`)
WHERE `media_id` =  '985' 
0.0006  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2195'
AND `kind` =  'gallery_image'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0003  

SELECT *
FROM (`products`)
WHERE `avail_id` IN ('A', 'B', 'C', 'H') 
AND `parent_id` =  '2195'
AND `type_id` =  'V'
ORDER BY IF(position = 0, 1, 0) ASC , `position`, `title` 
0.0001  

SELECT `c`.`format_id`, `c`.`price`, `c`.`sale_price`
FROM (`products` AS c)
WHERE `c`.`prod_id` =  '2196'
LIMIT 1 
0.0003  

SELECT SQL_CALC_FOUND_ROWS media_id, position
FROM (`media`)
WHERE `foreign_key_table` =  'products'
AND `foreign_key_column` =  'prod_id'
AND `foreign_key_value` =  '2196'
AND `kind` =  'thumbnail'
ORDER BY IF(position = 0, 1, 0) ASC , `position` 
0.0011  

SELECT `product_categories__products`.`cat_id`
FROM (`product_categories__products`)
JOIN `product_categories` ON `product_categories__products`.`cat_id` = `product_categories`.`cat_id`
WHERE `product_categories__products`.`prod_id` =  '2195'
AND `product_categories`.`parent_id` =  1
AND `product_categories__products`.`cat_id` NOT IN (1, 261)  
0.0013  

SELECT `cat_id` AS id, `parent_id` AS parent, `status_id`, `name`, `description`, `url_friendly`, `page_title`, `meta_keywords`, `meta_description`, `position`, `updated_at`
FROM (`product_categories`)
WHERE `cat_id` != 1
ORDER BY `parent_id`, IF(position = 0, 1, 0) ASC , `position`, `name` 
0.0003  

SELECT *
FROM (`product_categories`)
WHERE `status_id` =  'A'
AND `parent_id` =  1
AND `cat_id` NOT IN (1, 261) 
ORDER BY `name` 
0.0002  

SELECT *
FROM (`site_settings`)
WHERE `option_key` =  'announcement' 
  HTTP HEADERS  (Show)
  SESSION DATA  (Show)
  CONFIG VARIABLES  (Show)