1. Learning Objectives Secondary Data & Databases Copyright © 2002 South-Western/Thomson Learning Chapter four

2. Learning Objectives 1. To understand how firms create an internal database. 2. To learn about building a database from a Web site. 3. To become familiar data mining. 4. To understand the advantages and disadvantages of of using secondary data. 5. To understand the role of the Internet in obtaining secondary data 6. To become familiar with the types of databases available on CD-ROM. 7. To learn about types of information management systems.

3. Learning Objectives The Nature of Secondary Data To understand how firms create an internal database. 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. Creating An Internal Database An Internal Database is a collection of related information developed from data already within the organization. The Growing Importance of Internal Database Marketing

4. Learning Objectives To become familiar with data mining. Internal Databases Can Even Be Created From Conversations Creating Databases From a Web Site -A Marketer’s Dream Using Cookies Data Mining The use of statistical and other advanced software to discover nonobvious patterns hidden in a database. The Nature of Secondary Data

5. Learning Objectives The Battle over Privacy 1. Privacy policies will be mandatory 2. Clear choice to “opt-in” or “opt-out” 3. Ability to correct sensitive information 4. Penalties for noncompliance. To become familiar with data mining. The Nature of Secondary Data Potential Uses of Data mining in marketing: Customer acquisition Customer retention Customer abandonment Market basket analysis

6. Learning Objectives The Growing Importance of Internal Database Marketing A large computerized file of customer and purchase patterns. Internal Databases as Collective Memory Banks Internal Databases Can Even Be Created From Conversations To become familiar with data mining. The Nature of Secondary Data

7. Learning Objectives Internal: Information originating within the company External: Outside sources of secondary information. Advantages of Secondary Data 1. Clarify the problem. 2. May provide a solution. 3. May provide primary data research method alternatives. To understand the advantages and disadvantages of secondary data. Secondary Data

8. Learning Objectives 4. May alert the marketing researcher to potential problems or difficulties. 5. May provide necessary background information and build creativity. Limitations of Secondary Data Lack of Availability Lack of Relevance Inaccuracy To understand the advantages and disadvantages of secondary data. Secondary Data

9. Learning Objectives Inaccuracy 1. Who gathered the data? 2. What was the purpose of the data? 3. What information was collected? 4. When was the information collected? 5. How was the information collected? 6. Is the information consistent with other information? Insufficient data To understand the advantages and disadvantages of secondary data. Secondary Data

10. Learning Objectives Finding Secondary Data on the Internet Search Engines Directories Academic and professional directories Commercial portals AOL Search AltaVista To understand the role of the Internet in obtaining secondary data. The New Age of Secondary Information: The Internet and the World Wide Web Go to AOL SEARCH Go to AltaVista

11. Learning Objectives Ask Jeeves Direct Hit Excite FAST Search Go/Infoseek GoTo Google HotBot To understand the role of the Internet in obtaining secondary data. The New Age of Secondary Information: The Internet and the World Wide Web Go to askjeeves Go to directhit Go to excite G0 to hotbot Go to alltheweb Go to Go Go to GoTo Go to google

12. Learning Objectives HotBot IWON Inktomi LookSmart Lycos MSN Search To understand the role of the Internet in obtaining secondary data. The New Age of Secondary Information: The Internet and the World Wide Web Go to iwon Go to inkktomi Go to hotbot Go to LookSmart Go to Lycos Go to search MSN

13. Learning Objectives There are 70 federal agencies that publish data Statistical Universe FEDSTATS Periodical, Newspaper and Book Databases Finding Federal Government Data on the Internet ABI/Inform Global Dow Jones Interactive Electric Library Lexis-Nexis Periodical Abstracts Research II (PAR) To understand the role of the Internet in obtaining secondary data. Go to www.cispubs.com Go to www.cispubs.com Go to www.fedstats.com

14. Learning Objectives Internet Discussion Groups and Special Interest Groups as Sources of Secondary Data Newsgroups Connect to Internet Open newsreader program Search for topic Select the newsgroup Scan messages To understand the role of the Internet in obtaining secondary data. Finding Federal Government Data on the Internet

15. Learning Objectives BusinessUSA: 10 million businesses HouseholdsUSA: 100 million households Physicians & Surgeons: 575,000 physicians Big Businesses: 177,000 top firms Manufacturers: 612,000 manufacturers Small Business Owners: 4.5 million Geographic Information Systems (GIS) A demographic database, digitized maps, a computer, and software to add corporate data to the mix. Databases on CD-Rom To understand the role of the Internet in obtaining secondary data.

16. Learning Objectives Information Management A system for capturing, processing, and storing information so that it can be readily found and retrieved. Decision Support Systems (DSS) 1. Interactive 2. Flexible 3. Discovery orientated 4. Easy to learn and use To learn about types of information management systems. Databases on CD-Rom

17. Learning Objectives The Nature of Secondary Data Finding Federal Government Data on the Internet Databases on CD-Rom Secondary Data The New Age of Secondary Information: The Internet and the World Wide Web SUMMARY

18. Learning Objectives The End Copyright © 2002 South-Western/Thomson Learning