Chapter Three Copyright © 2006 John Wiley & Sons, Inc. Secondary Data and Database

John Wiley & Son, Inc 2 1.To understand how to create an internal database. 2.To learn about building a database from Web site visitors. 3.To Become familiar with data mining. 4.To understand the advantages and disadvantages of using secondary data. 5.To understand the role of the Internet in obtaining secondary data. 6.To be come familiar with the types of databases available on CD-ROM. 7.To learn about types of information management systems. Learning Objectives

John Wiley & Son, Inc 3 The Nature of Secondary Data To understand the advantages and disadvantages of secondary data. Secondary Data: –Data that have previously been gathered and that might be relevant to the problem at hand. Primary Data: –New data collected to solve a particular problem. Internal: –Information originating within the company External: –Outside sources of secondary information

John Wiley & Son, Inc 4 The Nature of Secondary Data To understand the advantages and disadvantages of secondary data. Advantages of Secondary Data 1.Clarify the problem. 2.May provide a solution. 3.May provide primary data research method alternatives. 4.May alert the marketing researcher to potential problems or difficulties 5.May provide necessary background information and build credibility for the research report

John Wiley & Son, Inc 5 The Nature of Secondary Data To understand the advantages and disadvantages of secondary data. Limitations of Secondary Data – Lack of Availability – Lack of Relevance – Inaccuracy 1.Who gathered the data? 2.What was the purpose of the study? 3.What and when was the information collected? 4.How was the information collected 5.Is the information consistent with other information? –Insufficiency

John Wiley & Son, Inc 6 To understand how firms create an internal database. Internal Data Bases Internal Database –a collection of related information developed from data already within the organization. Creating an Internal Database –Salesperson’ “call report” –Sales results –Customer preferences

John Wiley & Son, Inc 7 To understand how firms create an internal database. Internal Data Bases The Growing Importance of Internal Database Marketing –Database Marketing A large computerized file of customer and purchase patterns. –Micromarketing Database marketing can get a customized, individual message to everyone simultaneously through direct mail

John Wiley & Son, Inc 8 To learn about building a database from Web site visitors. Creating Databases From a Web Site -A Marketer’s Dream –Customer’s link to an online store is a two-way electronic link –Allows online merchant to gather information about the customer Cookies –Text file place on a user’s computer in order to identify the user when there is a return visit to the Web site Internal Data Bases

John Wiley & Son, Inc 9 To learn about building a database from Web site visitors. Data Mining –Neural network –Data mining The use of statistical and other advanced software to discover non-obvious patterns hidden in a database –Potential Uses of Data Mining in Marketing: Customer acquisition Customer retention Customer abandonment Market basket analysis Internal Data Bases

John Wiley & Son, Inc 10 To learn about building a database from Web site visitors. The Battle over Privacy –Privacy policies will be mandatory –Clear choice to “opt-in” or “opt-out” –Ability to correct sensitive information –Penalties for noncompliance. Internal Data Bases

John Wiley & Son, Inc 11 To understand the role of the Internet in obtaining secondary data. URLS (Uniform Reference Locator) –Address that identifies a particular location Search Engines –AltaVisa, Dogpile, and Google Sites of Interest to Marketing Researchers –See Periodical, Newspaper, and Book Databases Newsgroups –Function like bulletin boards for a particular topic or interest Finding Secondary Data on the Internet

John Wiley & Son, Inc 12 There are 70 federal agencies that publish data – Statistical Universe or through LEXIS-NEXIS STATIS – FEDSTATS –White House Briefing Room –Economic issues –Social issues To understand the role of the Internet in obtaining secondary data. Finding Secondary Data on the Internet

John Wiley & Son, Inc 13 Companies that off databases –Claritas International Compass/Agency Compass/Newspaper –InfoUSA See list of databases in Exhibit 3.1 –BusinessUSA –HouseholdsUSA –Physicians & Surgeons –Big Business –Manufacturers –Small Business Owners Databases on CD-ROM To become familiar with the types of databases available on CD-ROM

John Wiley & Son, Inc 14 Marketing Research Aggregators –Marketing Research Aggregator –Role of Aggregator Firms –Major Aggregators AllNetResearch.com Profound.com Bitpipe.com USADATA.com MarketResearch.com To become familiar with the types of databases available on CD-ROM Databases on CD-ROM

John Wiley & Son, Inc 15 Information Management –Development of a system for capturing, processing, and storing data so that it can be readily found and retrieved when needed for management decision making Geographic Information System (GIS) –Includes a demographic database, digitized maps, and software that enables the user to add corporate data to the mix –Spatial Querying Decision Support Systems (DSS) –Designed to support the needs and styles of individual decision makers Interactive Flexible Discovery-oriented Easy to learn and use Hypothetical example To learn about types of information management systems Information Management

John Wiley & Son, Inc 16 The Nature of Secondary Data Internal Databases Finding Secondary Data on the Internet Databases on CD-ROM Information Management SUMMARY

John Wiley & Son, Inc 17 The End Copyright © 2006, John Wiley & Sons, Inc

John Wiley & Son, Inc 18 The End Copyright © 2004, John Wiley & Sons, Inc