1. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6 Secondary Data Research in a Digital Age

2. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. LEARNING OUTCOMES 1.Discuss the advantages and disadvantages of using secondary data 2.Understand the typical objectives addressed by secondary data 3.Identify various internal and proprietary sources of secondary data 4.Give examples of various external sources of secondary data 5.Describe the impact of single-source data and globalization on secondary data research 2

3. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Every (Virtual) Move You Make 3 Privacy isn’t what it used to be! People online are easier to “watch” than ever before. Businesses and governments search electronic records for opportunities and threats.

4. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Secondary Data in Marketing Research Advantages  Available  Faster and less expensive than acquiring primary data  Requires no access to subjects  Inexpensive—government data is often free  May provide information otherwise not accessible Disadvantages  Uncertain accuracy  Data not consistent with needs  Inappropriate units of measurement  Time period inappropriate (outdated) 4 Secondary Data are data gathered and recorded by someone else prior to and for a purpose other than the current project.

5. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Secondary Data in Research (cont’d) Units of Measurement Data transformation The process of changing the original form of the data to a format suitable to achieve the research objective. Reliability and Validity Cross-checks The comparison of data from one source with data from another source to determine the similarity of independent projects 5

6. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Evaluating Secondary Data 6.1 6

7. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Common Research Objectives for Secondary-Data Studies 6.2 7

8. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Fact-Finding Fact Finding Identification of consumer behavior for a product category Trend Analysis Market tracking—the observation and analysis of trends in industry volume and brand share over time. Environmental Scanning Information gathering and fact-finding that is designed to detect indications of environmental changes in their initial stages of development. 8

9. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Does It Matter? 9 Secondary research shows that services and value are most important to consumers.

10. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Model Building Estimating market potential for geographic areas Forecasting sales Analysis of trade areas and sites Site analysis techniques – use secondary data to select the best location for retail or wholesale operations. Index of retail saturation – a calculation that describes the relationship between retail demand and supply. Advertising response 10

11. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Secondary Data for Calculating an Index of Retail Saturation 6.5 11

12. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Data Mining The use of powerful computers to dig through volumes of data to discover patterns about an organization’s customers and products; applies to many different forms of analysis. Neural Network A form of artificial intelligence in which a computer is programmed to mimic the way that human brains process information. 12

13. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Data Mining (cont’d) Market-Basket Analysis A form of data mining that analyzes anonymous point-of-sale transaction databases to identify coinciding purchases or relationships between products purchased and other retail shopping information. Customer Discovery Involves mining data to look for patterns identifying who is likely to be a valuable customer. 13

14. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Database Marketing and Customer Relationship Management Database Marketing The use of customer relationship management (CRM) databases to promote one-to-one relationships with customers and create precisely targeted promotions. The practice of maintaining a customer database of: Names and addresses Past purchases Responses to past efforts Data from numerous other outside sources 14

15. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. What’s That Buzzing Sound? 15 The Internet is filled with billions of consumer conversations. Buzzmetrics monitors Internet conversations for firms.

16. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Sources of Internal Secondary Data Internal data Data that originate in the organization and represent events recorded by or generated by the organization Proprietary Data Secondary data owned and controlled by the organization Enterprise search A search driven by an Internet-type search engine that focuses on data within an organization’s internal network. 16

17. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Uncle Sam Finds You! 17 The Department of Defense’s Joint Advertising, Market Research & Studies (JAMRS) project operates over a dozen research initiatives that make data available to military recruiters.

18. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. External Secondary Data Sources External Data Generated or recorded by an entity other than the researcher’s organization. Information as a product and its distribution Libraries Internet Vendors Producers Periodicals Government Media Trade associations Commercial sources 18

19. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Selected Internet Sources for Secondary Data 6.6 19

20. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Commercial Sources Market-share data Consumer attitude and public opinion research Consumption and purchase behavior data Advertising research 20

21. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Single-Source and Global Research Data Single-Source Data Diverse types of data offered by a single company. Usually integrated on the basis of a common variable (i.e., geographic area or store). Government Agencies Global secondary data Typical limitations of secondary data Additional pitfalls – Unavailable in some countries – Questionable accuracy (political influences) – Lack of standardized research terminology CIA’s World Factbook; National Trade Data Bank 21

22. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Examples of Single-Source Databases 6.7 22

23. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Example of information from fedstats.gov 23

24. ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. EXHIBIT Some Example Sources of Global Marketing Information 6.8 24