Secondary Data

Secondary Data -- data gathered for purposes other than the present study  Advantages Cheap in terms of time and money  Disadvantages Data Fit Accuracy

Secondary Data Types of Secondary Data  Internal -- originates within the organization for which the research is being conducted Least costly type of secondary data  External -- data found from sources external to the organization commissioning the research Cost more than internal data, but a wealth is available  Library Sources  Government Sources  Syndicated Sources

Secondary Data (Internal) Financial Statements Sales Reports (by Region, Sales Person, Etc.) Customer Databases  Collection of data about customers developed from internal sources (could be from MR activities)  Needs to be large and extensive to be effective

Secondary Data (Internal) Customer Databases  Data mining (use of statistical techniques to identify patterns hidden in a database) is needed Complex statistical methods are used  Disciminant analysis  Cluster analysis  Uses of data mining Customer Acquisition -- look to identify “types” of customers to whom we appeal Customer Retention (Abandonment) – identify customers we want to keep (get rid of)

Secondary Data (External) Library Sources (Magazines and Other Publications – many on Internet)  Possible uses Determine market size Determine market potential Describe the market Government Sources  Census data  State/Country economic data

Secondary Data (External) Standardized Marketing Information Services  Market Analysis Dun & Bradstreet Market Identifiers  Offers demographic overviews of various markets  Market Share Data Nielsen Retail Index  Consumer Services National Panel Diary  What are people buying National Family Opinion  What are people thinking  Ad Exposure Nielsen TV Ratings Arbitron Radio Listening Ratings

Example of Syndicated Research – AC Nielsen ACNielsen provides information like the following to the grocery, health & beauty care, tobacco, snack foods and beverage industries. Sales volume - How big is my market? Trends - Is my market growing or shrinking? Shares - Are competitors taking my business? Pricing - Can I raise my price and increase profits? Brand Shifting - Who will my new products get volume from? Distribution- Can consumers find my new product? Trial and Repeat - Who is trying my new product? Will they buy it again?

What kind of Marketing Research does ACNielsen really do? ACNielsen measures the sales of consumer packaged goods and consumer preferences and behavior for products sold through retail outlets (primarily food, convenience, drug and mass merchandiser)

Tracking What Happens at the Retailer Point of Sale... ACNielsen Collects Data in:  In over 36,000 retail outlets (US) Through Scanning and in store Auditing

Data Collection & Quality Three Sources of Information Coupons, Retailer Ads Recorded in Omaha, Nebraska All Data Merged in Plano, TX (EDS) and put into DB format for delivery UPCs Coded, Store Data received and coded in Fond du Lac, WI Regional field reps. transmit store conditions via Telxon unit

ACNielsen Consumer Panel Tracking what happens in the home 61,500 Households Geographically dispersed & demographically balanced Methodology allows for all-channel and retail account analysis Projectable at the national, regional, market & account level

Retail Measurement Consumer Panel Who buys what Where do they shop How often do they shop What’s in the shopping basket How loyal are shoppers Are shoppers switchers ACNielsen Links Store Data to the Consumer Behind the Purchase What brand sold At what price Under what conditions (e.g., coupon used?)

Fun Facts from Nielsen Data Consumers who buy “IBC Root Beer” at Target will spend twice as much money as an IBC consumer who shops at Wal*Mart Source: ACNielsen Homescan U.S. Consumers spent over $2.0 billion in 2002 on Pre-Cut Fresh Salad Mix. Source: ACNielsen Strategic Planner The unit sales of the “Salsa” category surpassed the sales of the “Ketchup” category for the first time in December of 1999 Source: ACNielsen Strategic Planner Only 95.4% of all U.S. households purchase toilet paper Source: ACNielsen Homescan