Using Secondary Data and Online Information Databases

1. Using Secondary Data and Online Information Databases

2. Primary Versus Secondary Data • Primary data: information that is developed or gathered by the researcher specifically for the research project at hand. • 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.

3. 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. • See www.secondarydata.com.

4. 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.

5. Classification of Secondary Data • Database marketing is the process of building, maintaining customer (internal) databases and other (internal) databases for the purpose of contacting, transacting, and building relationships. CRM and DATA Mining • Ethical Issue? How much information should companies have about consumers? http://www.adcritic.com/interactive/view.php?id=5927

6. Internal Databases • Database refers to a collection of data and information describing items of interest. • Vehicle Registration Database • Record: is a unit of information in a database. • SS#XXX YY ZZZZ • Fields: subcomponents of information composing records. • Brand – Color – Year • Model – Violations

7. Types of Secondary Data • Internal Data – Internal databases (files, records, reports, etc.) Sales records Scanner data Sales reports Database: Records Fields Data mining

8. External Secondary Data • Published: are sources of information prepared for public distribution and normally found in libraries or a variety of other entities such as trade organizations.

9. External Secondary Data • Syndicated Services Data: are provided by firms that collect data in a standard format and make them available to subscribing firms -- highly specialized and not available in libraries. Arbitron Radio Listenership Studies

10. External Secondary Data • External databases: are databases supplied by organizations outside the firm such as online information databases such as FACTIVA and Lexis Nexis.

11. Different Types of Publications

12. Advantages of Secondary Data • Obtained quickly • Inexpensive • Usually available • Enhances existing primary data • May achieve research objective

13. Disadvantages of Secondary Data • Incompatible reporting units…need zip code data and only have County data. • Measurement units do not match…need per capita income and only have household income. • Class definitions are not usable…need to know percent of population with income above $100k and only have $50k and over. • Data are outdated.

14. 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? • See MRI 6.2 on page 156

15. Locating Secondary Data Sources • Step 1: Identify what you wish to know and what you already know about your topic. • Step 2: Develop a list of key words and names. • Step 3: Begin your search using several library sources. • Step 4: Compile the literature you have found and evaluate your findings. • Step 5: If you are unhappy with what you have found or are otherwise having trouble and the reference librarian has not been able to identify sources, use an authority. • Step 6: Report results.

16. Search Strategies Used for Searching Online Information Databases • Boolean logic:And, Or, Not • Field searching:Author, Title, Subject • Proximity operators:Adj, Near, Same • Truncation:Allows root of the word to be submitted retrieving all words beginning with that root

17. Search Strategies Used for Searching Online Information Databases • Nesting:a technique that indicates the order in which a search is to be carried out • Limiting:limits the search of database records to those that meet specified criteria

18. Key Sources of Secondary Sources for Marketers • Census of the Population:considered the “granddaddy” of all market information • Conducted every ten years • Go to www.census.gov

19. Key Sources of Secondary Sources for Marketers • Other government publications • Go to www.gpoaccess.gov/index.html • Statistical abstract of the United States • Go to www.census.gov/statab/www

20. North American Industry Classification System (NAICS) • NAICS is replacing the SIC system which provides a coding system for business firms. • NAICS groups business firms into 20 broad sectors instead of the 11 divisions used by the SIC • NAICS updates types of businesses that have evolved since SIC was first used.

21. North American Industry Classification System (NAICS) • NAICS uses a six digit code instead of the old four digit SIC code which allows for greater specificity in identifying types of firms. • Go to Google/NAICS

22. “Survey of Buying Power” • The SPB is an annual survey published in Sales and Marketing Management magazine. • The “Survey of Buying Power” provides the buying power index (BPI).

23. “Calculating the Buying Power Index” BPI = (Population of Market Area A/Total U.S. Population * 2) + (EBI of Market Area A/Total U.S. EBI) * 5 + (Retail Sales of Market Area A/Total U.S. Retail Sales) *3

24. Demographics USA • Published by same company that produces the SPB • Demographics USA provides additional reporting categories for demographics. • Demographics USA provides several market indices in addition to the Buying Power Index.

25. The Lifestyle Market Analyst • The Lifestyle Market Analyst provides an analysis of lifestyle categories such as “avid book readers,” “own a cat,” “golf,” “have grandchildren.”

26. The Lifestyle Market Analyst • The lifestyle market analyst provides marketers with the following information: • Demographics by lifestyles • Other activities members of the lifestyle are involved in • Where the geographical markets are with the heaviest concentration of the given lifestyle • Which magazines participants of a given lifestyle read