Chapter 5: Secondary Data

Packaged Information

Packaged information is a type of secondary data in which the data collected and/or the process of collecting the data are prepackaged for all users. There are two broad classes of packaged information: -Syndicated data: collected in a standard format and made available to all subscribers. For example, Marketing Evaluations, Inc., offers several Q Scores® services -Packaged services: The term packaged services refers to a prepackaged marketing research process that is used to generate information for a particular user. Unlike syndicated data, the data from a packaged service will differ for each client.

Advantages of Secondary Data

-Are obtained quickly -Are inexpensive -Are readily available -Enhance existing primary data -May achieve research objective

Disadvantages of Packaged Services

-Aspects of a project cannot be customized. -The company providing the packaged service may not know the idiosyncrasies of a particular industry.

Disadvantages of Syndicated Data

-Buyers have little control over what information is collected. -Firms often must commit to long-term contracts when buying syndicated data. -No strategic information advantage exists in purchasing syndicated data (other firms can buy the same data).

Key Sources of Secondary Data

-Census of the Population, conducted every 10 years -Economic Census, conducted every five years -Statistics Canada -Industry Canada

Types of Internal Databases

-Data mining is the name for software that helps managers make sense out of seemingly senseless masses of information contained in databases. -Micromarketing refers to using a differentiated marketing mix for specific customer segments, sometimes fine-tuned for the individual shopper.

Internal Databases

-Internal databases consist of information gathered by a company, typically during the normal course of business transactions. -Companies use their internal databases for purposes of direct marketing and to strengthen relationships with customers, which is referred to as customer relationship management (CRM).

Classification of Secondary Data

-Internal secondary data are data that have been collected within the firm, such as sales records, purchase requisitions, and invoices. -Internal secondary data is used for database marketing. Database marketing is the process of building and maintaining customer (internal) databases and other (internal) databases for the purpose of contacting, transacting, and building relationships. Examples: CRM and data mining.

Marketing Applications of Packaged Information

-Measuring consumer attitudes and opinions -Market segmentation -Monitoring media usage and promotion effectiveness Monitoring consumer buzz or consumer-generated media (CGM) Monitoring and effectiveness of print media

Primary Versus Secondary Data

-Primary data: information that is developed or gathered by the researcher specifically for the research project at hand (caution re: definition) -Secondary data: information that has previously been gathered by someone other than the researcher and/or for some other purpose than the research project at hand

Disadvantages of Secondary Data

-Reporting units may be incompatible -Measurement units do not match -Class definitions are not usable -May be outdated -May not be credible

Uses of Secondary Data

-Secondary data has many uses in marketing research, and sometimes the entire research project may depend on the use of secondary data. -Applications include economic-trend forecasting, corporate intelligence, international data, public opinion, and historical data.

Advantages of Syndicated Data

-Shared costs -Quality of the data collected typically very high -Speed

Advantages of Packaged Services

-The experience of the research firm offering the service -Reduced cost of the research -Speed of the research service

Ways Companies Use Databases

-To identify prospects -To decide which customers should receive a particular offer -To deepen customer loyalty -To reactivate customer purchases -To avoid serious customer mistakes

Evaluating Secondary Data

-What was the purpose of the study? -Who collected the information? -What information was collected? -How was the information attained? -How consistent is the information with other information?

External Secondary Data

External databases are databases supplied by organizations outside the firm: 1) Published: information prepared for public distribution and normally found in libraries or a variety of other entities, such as trade organizations. 2) Syndicated services data: provided by firms that collect data in a standard format and make them available to subscribing firms—highly specialized and not available in libraries. 3) External Secondary Databases: databases supplied by organizations outside the firm, such as online information databases (e.g., IBISWorld, FACTIVA, Ebsco, and ProQuest).