Market Factors:

Number of Immediate Customers Accounting for 50% of Sales - The number of customers purchasing directly from this business required to account for 50% of sales.
Example: Counting from the top, this business has 4 immediate customers which account for 20%, 15%, 10% and 5% of sales , giving 4 as the number which account for 50% of sales.
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Number of End Users - An index describing the number of end users who purchase the business' products or services, and consume them or incorporate them into other products or services:

Index		Number of End Users
1		19 or fewer
2		20 to 99
3		10 to 999
4		1,000 to 9,999
5		10,000 to 99,999
6		100,000 to 999,999
7		1,000,000 to 9,999,999
8		10,000,000 to 24,999,999
9		25,000,000 or more

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Purchases Amount - End User - An index describing the typical end-user purchase amount. When customers buy on a contract basis covering a period of time, the total amount covered by such a contract should be regarded as a single purchase:

Index		Purchases Amount- End User
1		Less than $1.00
2		$1.00 to $9.99
3		$10 to $99
4		$100 to $999
5		$1,000 to $9,999
6		$10,000 to $99,999
7		$100,000 to $999,999
8		$1,000,000 to $9,999,999
9		$10,000,000 or more

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Served Market Concentration - Percentage calculated as the combined share in the served market of its four largest players. Include this business if it is one of the four largest.
Example: The combined share in the served market of the four largest competitors (25%, 20%, 15% and 10%) give a concentration of 70%.
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Market Differentiation - An index describing customer perceptions of how much the offerings of suppliers to the served market differ one from another:

Index		Market Differentiation
1		No differentiation (Pure commodity).
		Example: Home heating oil.
2		Somewhat differentiated.
		Example: Frozen orange juice, paper towels.
3		Highly differentiated.
		Example: Automobiles, breakfast cereals.

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Percent of Sales Accounted for by New Products - Percentage calculated as sales of new products as a percent of total sales. PIMS defines new products as products introduced during the 3 preceding years.
Example: For 2001, new products should include those introduced in 1999, 2000 and 2001.

New products differ from product improvements and product-line extensions. New products are characterized by one or more of the following: a long gestation period, major changes in manufacturing process, separate promotional budgets, or separate product management. An example of new product is color television added to a line of black-and-white televisions. An example of a product improvement is the annual model changes of automobiles. An example of a line extension is the addition of a plum flavor to a line of jams. In PIMS, product improvements and line extensions are not considered "new" products.
Example: New-product sales of $2 million, line-extension sales of $1 million, total sales of $10 million gives percent new-product sales of $2/$10 or 20%.
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Product R&D Expenses - Percentage calculated as total product R&D expenses as a percent of sales. Product R&D includes all expenses incurred to improve the existing products of services of the business or to develop new products or services. Include R&D expenses incurred for improvements in packaging as well as in product or service design, features and functions.
Example: Product R&D expense of $1 million, sales of $20 million. $1/$20 gives a product R&D expense of 5%.
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Competitiveness Factors:

Relative Quality - An index describing customer perceptions of the total performance-in-use of the offering of this business relative to the offerings of its leading competitors. Total quality includes product-, service-, and image-related attributes that count throughout the product use cycle. Common product attributes include speed, durability, etc. Common service attributes include availability, technical service, etc. Image attributes are limited to those cases where customers want the brand image per se (e.g. Gucci label on hand bags):

Index		Relative Quality
1		Much worse than the competition
2		Somewhat worse than the competition
3		Equivalent to the competition
4		Somewhat better than the competition
5		Much better than the competition

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Market Share - Percentage calculated as sales billed by this business as a percent of the total sales to the served market.
Example: Sales of $10 million divided by served market sales of $100 million gives a market share of 10%.
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Market Share Rank - Market share rank (1 = largest, etc.) of this business.
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Shared Marketing - An index describing the percent of your marketing programs (salesforce, advertising, promotion and administration) that is shared with other operations of your corporation:

Index		Shared Marketing
1		No sharing
2		Less than 10%
3		10% - 24%
4		25% - 49%
5		50% - 74%
6		Over 75%

Example: Salesforce expense of $10 million is shared with other operations, other marketing programs are not shared, and Total Marketing expense is $20 million; so 50% of your marketing is shared.
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