Chapter 4 Secondary Data

Focus definition, pluses and minuses internal and external sources syndicated sources application

Definition data collected for some purpose other than the problem at hand store patronage project--criteria used for selecting stores –Journal of Retailing –Journal of Marketing –Journal of Marketing Research primary data: data originated by the researcher for the specific purpose of addressing the research problem

Advantages easily accessible relatively inexpensive quickly obtained can provide valuable insights and lay the foundation for designing studies to collect primary data

Disadvantages usefulness to the current problem may be limited –relevance –accuracy (CPI Index) currency (Census data)

Internal Secondary Data lots of data inside the organization some ready to use, while others require processing e.g., sales, service, warranty, complaints, letters not fully exploited by companies how to exploit: e.g. data base marketing

Data Base Marketing capture and track customer profiles and purchase details use in designing marketing programs start by transferring raw sales information –customer name, address, product bought, quantity, price, etc overlay with demographic and psychographic data on the customer internally generated or bought from external sources update this information and use over the lifetime of the relationship example

External Secondary Sources General Business Data –Guides –Directories –Indexes –Nongovernment statistical data Government Sources –Census data –other government publications

Computerized Databases Online Internet Off-line –Bibliographic databases –Numeric databases –Full-text databases –Directory databases

Syndicated Sources of Data collect and sell common pools of data designed to serve information needs shared by a number of clients e.g. Nielsen TV Audience information can be personalized to fit customer needs

Types of Syndicated Data Households –Surveys –Mail Diary Panels –Electronic Scanner Services Institutions –Retailer and Wholesaler audits –Industrial Firms direct inquiries clipping services corporate reports

Surveys interviews with a large number of respondents using a predesigned questionnaire Psychographics and Lifestyles –Yankelovich Monitor –Stanford Research Institute (VALS) –Audits and Surveys - leisure/travel/recreation businesses Advertising Evaluation –Starch Readership Survey –TV effectiveness studies General Surveys

Uses of Surveys market segmentation establishing consumer profiles evaluating advertising effectiveness identifying ad themes

Pluses and Minuses primary means of collecting data on motives, attitudes, and preferences variety of data can be collected from specific to general audiences however, may be subject to response errors samples may be biased interviewers/designers have to be well- trained

Diary Panels samples of respondents who provide specified information at regular intervals respondents record specific behaviors as they occur in a diary compensation - gifts, cash, coupons, information two types-purchase and media panels

Purchase Panels respondents record their purchases NPD, MRCA, NFO can be done on the Internet

Media Panels electronic devices automatically record viewing behavior Nielsen Television index n = 5000 households supplemented with audilogs (who was watching) number and % of all TV households viewing a given show disaggregated by 10 demographic and socioeconomic characteristics useful for media selection

Uses of Diary Panels purchase panels –estimate market share –forecast sales –assess brand loyalty –establish profiles –measuring promotional effectiveness media panels –establishing advertising rates –selecting appropriate programming –profiling viewers

Pluses/ Minuses can provide longitudinal data more and higher quality data eliminates recall/human errors however, lack of representativeness maturation bias high rate of attrition

Electronic Scanner Services Data obtained by passing merchandise over a laser scanner, which reads the UPC code from the packages linked to current price of the merchandise stored in the computer Volume Tracking Data Scanner Diary Panels Scanner Diary Panels with Cable TV

Uses tracking sales, price, distribution and promotion data testing new products, repositioning existing ones making advertising and pricing decisions

Pluses/Minuses not subject to any biases in-store variables are part of the data set current and obtained quickly provide a highly controlled test environment however, may not be representative quality may be suspect no data on underlying motives and attitudes

Retailer and Wholesaler Audit Audit - a formal examination and verification of product movement carried out by examining physical records or analyzing inventory compensation- reports, cash Nielsen Retail Index –biweekly audit of supermarkets, drugstores, and mass merchandisers –11350 retail stores Wholesale audits monitor warehouse withdrawals

Uses size of the total market and distribution by geographical unit brand shares and competitive activity identifying shelf space allocation and inventory problems analyzing distribution problems developing sales potential and forecasts promotional strategy tracking

Pluses/Minuses provide accurate data on movement at both retail and wholesale levels by brand, geographical area, and type of outlet however, their coverage is limited data may not be timely (lag of 8 weeks) data cannot be linked to consumer characteristics, advertising expenditures and other marketing efforts

Industry Services provide syndicated data on companies on the basis of data gathered from direct inquiries, clipping services and corporate reports Dun and Bradstreet Market Identifiers Fortune’s Input-Output Matrix reports McGraw Hill’s Dodge Reports

Uses Sales management –identifying prospects –defining territories –setting sales quotas Advertising Strategy Market segmentation

Pluses/Minuses only source for industrial products however, limited in content and quality

Single-Source Data Combining data from several sources can add to the usefulness of secondary data Single source research follows a person’s TV, reading and shopping habits V8 example

Computer Mapping combines geography, demography with a company’s sales or other data color-coded maps where are customers for product XYZ located? Useful in rollout of a new product