McGraw-Hill/Irwin McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 5 Secondary Research: Designs, Searches, and Sources

1. Determine when secondary research is the best approach. 2. Understand the role of secondary data in marketing research. 3. Explain why researchers conduct literature reviews and electronic searches. 4. Describe how to conduct secondary research. 5. Identify and use internal and external secondary data sources. Learning Objectives 5-3

Value of Secondary Data Increasing use of secondary research designs to collect... CustomerDataCustomerDataCompetitorInformationCompetitorInformationIndustryDataIndustryData 5-4

Value of Secondary Data Chat sessions, blogs comments Customer usability labs Electronic customer councils Examples of Customer Data Examples of Customer Data 5-5

Value of Secondary Data Secondary data are not only more readily available, but sometimes more valid and frequently less expensive than primary data. 5-6

Can the data help answer the specified research questions? Can the data help answer the specified research questions? Are the data relevant to the time period and population of interest? Are the data relevant to the time period and population of interest? Is the unit of measurement comparable to the current situation? Is the unit of measurement comparable to the current situation? Can the original source of the data be accessed? Can the original source of the data be accessed? Are data acquisition costs reasonable? Are data acquisition costs reasonable? Can data bias be assessed? Can data bias be assessed? Can data collection accuracy be verified? Can data collection accuracy be verified? If accuracy cannot be verified, should the data be used? If accuracy cannot be verified, should the data be used? Value of Secondary Data – Is the relevant data available? 5-7

8 Nature and Scope of Secondary Data Types of SecondaryData SecondaryData ExternalExternal InternalInternal Customer Knowledge Information Information 5-8

Step 1:Confirm the problem and research objectives. Step 2:Clarify information needs and evaluate information value. Step 3:Determine whether secondary data can solve the problem. Step 4:Develop a systematic search plan and procedures. Step 5:Combine data from multiple sources. Step 6:Interpret and summarize the data. Step 7:Write and present research findings. Steps in Secondary Data Research 5-9

Changing Role of Secondary Data FutureFuture Applied more often as cost effective for solving marketing problems Role of secondary research analyst has been redefined TraditionalTraditional Viewed as non-original, but provided historical background Viewed as non-original, but provided historical background Viewed as filler, attachment, or appendix or appendix Viewed as filler, attachment, or appendix or appendix 5-10

Role of Secondary Data... uses combination of technology and human resources... to learn more about customers’ needs and behaviors... to develop stronger relationships with customers Customer Relationship Management (CRM) 5-11

Different Methods of Gathering Information Different Methods of Gathering Information Customer Information – consider all the ways it comes into the company Customer Information – consider all the ways it comes into the company Data – where and how stored and being used Data – where and how stored and being used Data – flow between operational and analytical systems Data – flow between operational and analytical systems Analysts – search data for customer info Analysts – search data for customer info Secondary data – nucleus for CRM process Secondary data – nucleus for CRM process Role of Secondary Data in Marketing Research 5-12

Role of Secondary Data Customer Data Current customersCurrent customers New customersNew customers Needs analysisNeeds analysis Customer knowledgeCustomer knowledge InformationInformation Customer Data Current customersCurrent customers New customersNew customers Needs analysisNeeds analysis Customer knowledgeCustomer knowledge InformationInformation Market Data Trend analysisTrend analysis Business and competitive intelligenceBusiness and competitive intelligence Market Data Trend analysisTrend analysis Business and competitive intelligenceBusiness and competitive intelligence Types of External Secondary Data 5-13

Internal Support Data Internal Support Data Primary research support Primary research support Presentation support Presentation support Decision-making support Decision-making support Society of Competitive Intelligence Professionals – survey results from marketing research firms use of secondary research... Society of Competitive Intelligence Professionals – survey results from marketing research firms use of secondary research... Monitoring competitive and business intelligence – 82 percent. Monitoring competitive and business intelligence – 82 percent. Providing functional support for primary research projects – 75 percent. Providing functional support for primary research projects – 75 percent. Managerial presentations – 59 percent. Managerial presentations – 59 percent. Specific business decisions – 57 percent. Specific business decisions – 57 percent. Validating internal data and primary data collection – 48 percent. Validating internal data and primary data collection – 48 percent. Role of Secondary Data in Marketing Research 5-14

Two Types of Approaches Literature reviews Literature reviewsElectronicsearchesElectronicsearches 5-15

Literature Review... a comprehensive examination of available information related to your research topic.... a comprehensive examination of available information related to your research topic. 5-16

oClarify the research problem and questions. oFind similar existing studies. oSuggest research hypotheses. oIdentify questions and scales to measure concepts. oClarify the research problem and questions. oFind similar existing studies. oSuggest research hypotheses. oIdentify questions and scales to measure concepts. Reasons for conducting a literature review

Literature Review Approaches  Popular Sources  Scholarly Research  Popular Sources  Scholarly Research 5-18

Step 1:Identify Relevant Literature to Review for Your Topic Step 2:Analyze Literature and Sources Step 3:Analyze Quantitative Research Literature/Sources (if needed) Step 4:Analyze Qualitative Research Literatures/Sources (if needed) Step 5:Prepare Tables That Summarize Literature Sources Step 6:Synthesize Literature Prior to Writing a Review Step 7:Write First Draft of the Review Step 8: Check Style, Mechanics, and Language Usage Guidelines for Conducting Literature Reviews 5-19

MarketingSherpa.ComMarketingSherpa.Com’s Best Marketing MarketingSherpa.Com 5-20

Primary Reasons for Using Secondary Data Saves time and money = fast and relatively inexpensive. Saves time and money = fast and relatively inexpensive. General rule of thumb – first exhaust all potential sources of secondary data. General rule of thumb – first exhaust all potential sources of secondary data. Secondary data is becoming more accurate. Secondary data is becoming more accurate. Saves time and money = fast and relatively inexpensive. Saves time and money = fast and relatively inexpensive. General rule of thumb – first exhaust all potential sources of secondary data. General rule of thumb – first exhaust all potential sources of secondary data. Secondary data is becoming more accurate. Secondary data is becoming more accurate. 5-21

As digital sources of secondary data become more accessible, researchers are using secondary information more often to... 1.gain clearer insight and understanding of problems/opportunities; 2.provide guidance in evaluating and designing data collection methods and/or addressing measurement issues; 3.identify sampling and response rate difficulties; 4.obtain background information and justification for research findings; and 5.provide solutions to problems without the need to collect any primary data, thus reducing the time, money, and effort. As digital sources of secondary data become more accessible, researchers are using secondary information more often to... 1.gain clearer insight and understanding of problems/opportunities; 2.provide guidance in evaluating and designing data collection methods and/or addressing measurement issues; 3.identify sampling and response rate difficulties; 4.obtain background information and justification for research findings; and 5.provide solutions to problems without the need to collect any primary data, thus reducing the time, money, and effort. Uses of Secondary Data 5-22

Step 1:Determine research objective(s) Step 2:Identify competing companies and factors of Interest Step 3:Conduct online search Step 4:Compile data in summary tables Step 5:Interpret results Step 6:Prepare and present findings to management Steps in Conducting Competitive Intelligence Research 5-23

Six fundamental principles for developing better procedures to evaluate secondary data sources... Six fundamental principles for developing better procedures to evaluate secondary data sources... Purpose Purpose Accuracy Accuracy Consistency Consistency Credibility Credibility Methodology Methodology Bias Bias Use and Evaluation of Secondary Data Sources 5-24

Common Sources of Internal Secondary Data 5-25

Traditional Internal Sources of Secondary Data Sales activity reports reports Quarterly sales reports reports Accounts receivable reports Sales invoices Types of Internal Secondary Sources 5-26

Other Types... Other Types... Customer letters Customer letters Customer comment cards Customer comment cards Mail order forms Mail order forms Credit application Credit application Cash register receipts Cash register receipts Salesperson expense report Salesperson expense report Employee exit interview Employee exit interview Warranty cards Warranty cards Past marketing research studies Past marketing research studies Internet-provided information Internet-provided information Traditional Internal Sources of Secondary Data 5-27

1.Goals 2.Objectives 3.Characteristics 4.Activities 5.Reliability 6.Tabulation 1.Goals 2.Objectives 3.Characteristics 4.Activities 5.Reliability 6.Tabulation Seeking Secondary Data Steps: Go-Cart Approach Steps: Go-Cart Approach 5-28

Key Variables Sought in Secondary Data Search 5-29

North American Industry Classification System (NAICS) North American Industry Classification System (NAICS) Government Documents Government Documents U S Census Data U S Census Data U S Census Reports U S Census Reports U S Department of Commerce Data U S Department of Commerce Data Additional Government Reports Additional Government Reports Aging America Aging America Economic Indicators Economic Indicators Economic Report of the President Economic Report of the President Federal reserve Bulletin Federal reserve Bulletin Statistics of Income Statistics of Income Survey of Current Business Survey of Current Business Key Sources of External Secondary Data 5-30

Secondary Sources of Business Information Secondary Sources of Business Information Directories Directories Business Organizations, Agencies and Publication Business Organizations, Agencies and Publication Directory of Corporate Affiliation Directory of Corporate Affiliation Fortune Magazine Directory Fortune Magazine Directory International Directory of Corporate Affiliations International Directory of Corporate Affiliations Million Dollar Directory Million Dollar Directory F&S Index F&S Index Standard & Poor’s Registry of Corps Standard & Poor’s Registry of Corps Thomas’ Register of American Manufacturing Thomas’ Register of American Manufacturing Marketing Economics Guide Marketing Economics Guide Business Index Business Index Business Periodical Index Business Periodical Index Key Sources of External Secondary Data 5-31

ABI Inform Database ABI Inform Database Sales and Marketing Management’s Survey of Buying Power Sales and Marketing Management’s Survey of Buying Power MSA, counties, cities, and states in US MSA, counties, cities, and states in US Effective buying income (EBI) Effective buying income (EBI) Buying Power Index (BPI Buying Power Index (BPI Source Book of Demographics and Buying Power for Every Zip Code in the USA Source Book of Demographics and Buying Power for Every Zip Code in the USA Key Sources of External Secondary Data 5-32

Statistical Sources of Information Statistical Sources of Information Merchandising: “Statistical and Marketing Report” Merchandising: “Statistical and Marketing Report” Standard and Poor’s Industrial Surveys Standard and Poor’s Industrial Surveys American Statistics Index American Statistics Index Statistical Reference Index Statistical Reference Index Federal Statistical Directory Federal Statistical Directory Key Sources of External Secondary Data 5-33

Commercial Publication and Newspapers... Commercial Publication and Newspapers... Newspapers that are indexed Newspapers that are indexed The New York Times The New York Times The Wall Street Journal The Wall Street Journal Christian Science Monitor Christian Science Monitor Los Angles Times Los Angles Times Chicago Tribune Chicago Tribune Boston Globe Boston Globe Atlanta Constitution Atlanta Constitution Business Periodical Index Business Periodical Index Key Sources of External Secondary Data 5-34

Characteristics of Syndicated Data Sources Characteristics of Syndicated Data Sources Syndicated Data Syndicated Data organized by geographic region, sales territory, market segment, product class or brand organized by geographic region, sales territory, market segment, product class or brand Syndicated Sources of Secondary Data 5-35

Consumer Panels Consumer Panels Benefits Benefits Lower cost than primary data collection methods Lower cost than primary data collection methods Rapid availability and timeliness Rapid availability and timeliness Accurate reporting Accurate reporting High level of specificity High level of specificity Weakness Weakness Sampling error Sampling error Turnover Turnover Response bias Response bias Syndicated Sources of Secondary Data 5-36

Examples of Consumer Panel Data Sources Examples of Consumer Panel Data Sources NPD Group NPD Group National Family Opinion (NFO) National Family Opinion (NFO) Market Facts, Inc Market Facts, Inc The Bases Group The Bases Group J. D. Power and Associates J. D. Power and Associates Roper Starch Worldwide Roper Starch Worldwide Creative and Response Research Service Creative and Response Research Service Chilton Research Service Chilton Research Service Yankelovich Partners, Inc Yankelovich Partners, Inc Syndicated Sources of Secondary Data 5-37

Examples of Media Panel Data Sources... Examples of Media Panel Data Sources... Neilsen Media Research Neilsen Media Research Rating Rating Share Share People meter People meter Primary purpose Primary purpose Diary panels Diary panels Arbitron, Inc Arbitron, Inc Other Media Panels Other Media Panels Store audits Store audits Syndicated Sources of Secondary Data 5-38

Data Gathering in the Store Audit Data Gathering in the Store Audit Product/brand sales in relation to competition Product/brand sales in relation to competition Direct sales and inventory level at retail Direct sales and inventory level at retail Effectiveness of shelf space and POP displays Effectiveness of shelf space and POP displays Sales at various price points and levels Sales at various price points and levels Effectiveness of in-store promotion Effectiveness of in-store promotion Competitive marketing practices Competitive marketing practices Major providers of In-store Audit Services Major providers of In-store Audit Services AC Nielsen (Nielsen Retail Index) AC Nielsen (Nielsen Retail Index) Information Resources (Infoscan) Information Resources (Infoscan) Syndicated Sources of Secondary Data 5-39

40 Nature and Scope of Secondary Data Limitations of SecondaryData SecondaryData Prior data manipulation RelevancyRelevancy AccuracyAccuracy 5-40

Company Information Available on Web Company Information Available on Web To find companies URL To find companies URL Know This Know This Business Intelligence Program (BIP) Business Intelligence Program (BIP) Corporate Information Corporate Information Additional Use of the Internet Additional Use of the Internet Track and monitor current alerts about competitors Track and monitor current alerts about competitors Search engines – Google, Yahoo!, Excite, AltaVista Search engines – Google, Yahoo!, Excite, AltaVista The Internet as a Growing Source of Secondary Data 5-41

The Internet as a Growing Source of Secondary Data oFuture of Secondary Data Explosion of Information on the Net Explosion of Information on the Net Information Management Technology... Information Management Technology... Interactive television and shopping Interactive television and shopping Two-way satellite communication Two-way satellite communication At-home on-demand shopping At-home on-demand shopping oFuture of Secondary Data Explosion of Information on the Net Explosion of Information on the Net Information Management Technology... Information Management Technology... Interactive television and shopping Interactive television and shopping Two-way satellite communication Two-way satellite communication At-home on-demand shopping At-home on-demand shopping 5-42