Chapter Three

Chapter Three

Copyright © 2006McGraw-Hill/Irwin

Information Management for Marketing Decisions: Secondary Data Sources

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• Secondary Data– Collecting Customer Data

• Electronic customer councils• Customer usability labs• E-mail comments• Chat sessions

– Data used to make sound marketing decisions

Value of Secondary Data

Understand how secondary data fit into the marketing research process

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• Types of Secondary Data– Secondary data– Internal secondary data– Customer knowledge information– External secondary data

Understand how secondary data fit into the marketing research process

Nature and Scope of Secondary Data

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• Change in the Role of Secondary Data– Traditional

• Viewed as nonoriginal• Provided historical background• Viewed as filler, attachment, or appendix

– Future• Applied more often to specific marketing

problems• Cost-effectiveness of gathering secondary data• Redefined the role of secondary research analyst

Role of Secondary Data in Marketing

Research

Understand how secondary data fit into the marketing

research process

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• Secondary Data and Customer Relationship Management– Customer Relationship Management

(CRM)• To learn more about customers’ needs and

behaviors• To develop stronger relationships with

customers• Uses combination of technology and human

resourses

Role of Secondary Data in Marketing

Research

Explain how secondary data fit into the customer relationship

management process

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• Different Methods of Gathering Information– Customer Information—look at all the ways it

comes into the company– Data--where and how stored and being used– Data—flow between operational and

analytical systems– Analysts—searches data for customer info– Secondary data—nucleus for CRM process

Role of Secondary Data in Marketing

Research

Understand how secondary data fit into the marketing research process

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• External Market Data– Trend analysis– Business and competitive intelligence

• External Customer Data– Current customers– New customers– Need analysis– Customer knowledge– Information

Role of Secondary Data in Marketing

Research

Know how to use and extract external secondary data

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Exhibit 3.9 Know how to use and extract external secondary data

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• Internal Support Data– Primary research support– Presentation support– Decision-making support

• Society of Competitive Intelligence Professionals– Survey results from marketing research

firms use of secondary research

Role of Secondary Data in Marketing

Research

Know how to use and extract external secondary data

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• Primary Reason for Using Secondary Data– Saves time and money– General rule of thumb

• Exhaust all potential sources of secondary data

– Secondary data will become more accurate

Use and Evaluation of Secondary Data Sources

Demonstrate how secondary data can be used in problem solving

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• 6 Fundamental Principles for Developing Better Procedures to Evaluate Secondary Data Sources– Purpose– Accuracy– Consistency– Credibility– Methodology– Bias

Use and Evaluation of Secondary Data Sources

Demonstrate how secondary data can be used in problem solving

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• Types of Internal Secondary– Sales invoices– Accounts receivable reports– Quarterly sales reports– Sales activity reports

Traditional Internal Sources of

Secondary Data

List sources of traditional internal secondary data

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Exhibit 3.2List sources of traditional internal

secondary data

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• Other Types– Customer letters– Customer comment

cards– Mail order forms– Credit application– Cash register

receipts

– Salesperson expense report

– Employee exit interview

– Warranty cards– Past marketing

research studies– Internet-provided

information

Traditional Internal Sources of

Secondary Data

List sources of traditional internal secondary data

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List sources of traditional internal secondary dataExhibit 3.2

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• Seeking Secondary Data Sources– Go-Cart Approach

1. Goals

2. Objectives

3. Characteristics

4. Activities

5. Reliability

6. Tabulation

Using and Extracting External Sources of

Secondary Data

List sources of traditional internal secondary data

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• North American Industry Classification System (NAICS)

• Government Documents– U S Census Data– U S Census Reports– U S Department of

Commerce Data

– Additional Government Reports

• Aging America• Economic Indicators• Economic Report of

the President• Federal reserve

Bulletin• Statistics of Income• Survey of Current

Business

Identify sources of external secondary data

Key Sources of External Secondary Data

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Identify sources of external secondary dataExhibit 3.4

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Identify sources of external secondary dataExhibit 3.5

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Identify sources of external secondary dataExhibit 3.6

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• Secondary Sources of Business Information– Directories

• Business Organizations, Agencies and Publication

• Directory of Corporate Affiliation

• Fortune Magazine Directory

• International Directory of Corporate Affiliations

• Million Dollar Directory• F&S Index• Standard & Poor’s

Registry of Corps• Thomas’ Register of

American Mfg• Marketing Economics

Guide• Business Index• Business Periodical

Index

Key Sources of External Secondary Data

Identify sources of external secondary data

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– ABI Inform Database– Sales and Marketing Management’s Survey

of Buying Power• MSA, counties, cities, and states in US• Effective buying income (EBI)• Buying Power Index (BPI

– Source Book of Demographics and Buying Power for Every Zip Code in the USA

Identify sources of external secondary data

Key Sources of External Secondary Data

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– Statistical Sources of Information• Merchandising: “Statistical and Marketing

Report”• Standard and Poor’s Industrial Surveys• American Statistics Index• Statistical Reference Index• Federal Statistical Directory

Identify sources of external secondary data

Key Sources of External Secondary Data

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– Commercial Publication and Newspapers• Newspapers that are indexed

– The New York Times

– The Wall Street Journal

– Christian Science Monitor

– Los Angles Times

– Chicago Tribune

– Boston Globe

– Atlanta Constitution

– Business Periodical Index

Identify sources of external secondary data

Key Sources of External Secondary Data

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• Characteristics of Syndicated Data Sources– Syndicated Data

• organized by geographic region, sales territory, market segment, product class or brand

Understand the availability and use of syndicated sources of

secondary data

Syndicated Sources of Secondary Data

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– Consumer Panels• Benefits

– Lower cost than primary data collection methods– Rapid availability and timeliness– Accurate reporting– High level of specificity

• Weakness– Sampling error– Turnover– Response bias

Understand the availability and use of syndicated sources of

secondary data

Syndicated Sources of Secondary Data

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– Examples of Consumer Panel Data Sources• NPD Group• National Family Opinion (NFO)• Market Facts, Inc• The Bases Group• J. D. Power and Associates• Roper Starch Worldwide• Creative and Response Research Service• Chilton Research Service• Yankelovich Partners, Inc

Understand the availability and use of syndicated sources of

secondary data

Syndicated Sources of Secondary Data

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– Examples of Media Panel Data Sources• Nelsen Media Research

– Rating– Share– People meter– Primary purpose– Diary panels

• Arbitron, Inc• Other Media Panels• Store audits

Understand the availability and use of syndicated sources of

secondary data

Syndicated Sources of Secondary Data

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– Data Gathering in the Store Audit• Product/brand sales in relation to competition• Direct sales and inventory level at retail• Effectiveness of shelf space and POP displays• Sales at various price points and levels• Effectiveness of in-store promotion • Competitive marketing practices

– Major providers of In-store Audit Services• AC Nielsen (Nielsen Retail Index)• Information Resources (Infoscan)

Understand the availability and use of syndicated sources of

secondary data

Syndicated Sources of Secondary Data

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• Company Information Available on Web– To find companies URL

• KnowThis http://www.knowthis.com/

– Business Intelligence Program (BIP)• Corporate Information

– http://www.corporateinformation.com

– Additional Use of the Internet• Track and monitor current alerts about competitors• Search engines—Google, Yahoo!, Excite, AltaVista

Understand the changing focus of secondary data usage

The Internet as a Growing Source of Secondary Data

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Understand the changing focus of secondary data usageExhibit 3.9

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• Future of Secondary Data Sources– Explosion of Information on the Net– Technology of Information Management

• Interactive television and shopping• Two-way satellite communication• At-home on-demand shopping

Understand the changing focus of secondary data usage

The Internet as a Growing Source of Secondary Data

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• Value of Secondary Data• The Nature and Scope of Secondary Data• The Role of Secondary Data in Marketing Research• Use and Evaluation of Secondary Data Sources• Traditional Internal Sources of Secondary Data• Using and Extracting External Sources of Secondary

Data• Key Sources of External Secondary Data• Syndicated Sources of Secondary Data• The Internet as a Growing Source of Secondary Data

Summary