Standardized Information Sources

Ch 72 What is Standardized Information? Standardized information is a type of secondary data in which the data collected and/or the process of collecting the data are standardized for all users. Two broad classes: –Syndicated data –Standardized services

Ch 73 Types of Standardized Information Syndicated data are data that are collected in a standard format and made available to all subscribers. –Example: The Nielsen TV Ratings

Ch 74 Types of Standardized Information Standardized services refers to a standardized marketing research process that is used to generate information for a particular user. –ESRI’s Community Tapestry

Ch 75 Advantages of Syndicated Data Advantages: –Shared costs –Quality of the data collected is typically very high. –Data are normally disseminated very quickly.

Ch 76 Disadvantages of Syndicated Data Disadvantages: –Buyers have little control over what information is collected. –Firms often must commit to long-term contracts. –No strategic information advantage in purchasing syndicated data.

Ch 77 Advantages of Standardized Services Advantages: –Taking advantage of the experience of the research firm offering the service. –Reduced cost. –Speed of the research service.

Ch 78 Disadvantages of Standardized Services Disadvantages: –The ability to customize some projects is lost. –The company providing the standardized service may not know a particular industry well.

Ch 79 Application Areas of Standardized Information Measuring Consumer Attitudes and Opinion Polls –Yankelovich Monitor –Harris Poll –Gallup Poll Defining Market Segments –Dun’s Market Identifiers (DMI) for b2b –Vals

Ch 710 Examples Gallup.com Public opinion polling Wide variety of topics: Iraq, military & defense, stem cell research, important factors in buying a car, smoking population percents over time, guns, etc. Some issues may be tracked over several years; Gallup started in

Ch 711 Examples Dun’s Market Identifiers Dun & Bradstreet credit bureau collects vast amount of information on business firms, private and public. 4 million firms in data base updated monthly Whereas SIC uses 4 digits and NAICS uses 5 or 6, DMI’s uses 8 digits to classify firms into very specific types of businesses.

Ch 712 Examples Dun’s Market Identifiers Manufacturer of wooden gift baskets Small without marketing resources Needed wholesalers…of gift baskets. Where are they? Who are they? SIC: 51 Code for wholesalers/nondurables 5199, wholesalers, nondurables, miscellaneous goods! Thousands of firms wholesaling all kinds of goods DMI code: wholesalers of gift baskets. 45 in U.S. Complete info on each!

Ch 713 Geodemographics Geodemographics is the term used to describe the classification of arbitrary, usually small, geographic areas in terms of the characteristics of their inhabitants.

Ch 714 Geodemographics Claritas has a market profiling system called PRIZM. –Defines every neighborhood in the U.S. in terms of 66 different clusters. –ESRI’s Community Tapestry; 65 segments –Donofrio’s Coffee Example at beginning of chapter, p. 177 ff.

Ch 715 Application Areas of Standardized Information (cont.) Conducting Marketing Tracking: RETAIL, HOME –Market tracking studies monitor, or track, a variable over time. ACNielsen’s Scantrack® Services 4,800 food, drug and mass merch.- weekly!

Ch 716 Application Areas of Standardized Information (cont.) –Market tracking studies monitor, or track, a variable over time. ACNielsen also has Convenience Track® for tracking products sold through c-stores Infoscan’s Custom Store Tracking 32,000 supermarkets, drugstores, and mass merch. –weekly HOUSEHOLD DATA are collected through panels

Ch 717 A problem with today’s IT environment is information overload. There is a need to help managers trying to digest thousands of pages of scanning data. How do you turn tracking data into intelligence? Research firms designed standardized services to help… –IRI’s Builder –AC Nielsen’s category Business Planner (next slide)

Ch 718 ACNielsen’s Category Business Planner Allows manufacturers to see how their products are performing within each retailer’s own proprietary planning process

Ch 719 Application Areas of Standardized Information (cont.) Monitoring Media Usage and Promotion Effectiveness –Tracking downloaded music – ACNielsen’s SoundScan –Television – Nielsen Television Index (NTI)

Ch 720 Application Areas of Standardized Information (cont.) Monitoring Media Usage and Promotion Effectiveness –Radio – Arbitron –Print – NOPWorld’s Starch Readership Service –Multimedia – Simmons National Consumer Study

Ch 721 Single Source Data Single-source data: data that contain information on several variables such as promotional message exposure, demographics, and buyer behavior. –Recorded continuously from a panel of respondents to measure their exposure to promotional materials (usually TV as well as in-store promotions) and subsequent buying behavior –Can help managers determine causal relationships between types of promotions and sales. Example: BehaviorScan