1. Chapter Three Copyright © 2006 McGraw-Hill/Irwin Information Management for Marketing Decisions: Secondary Data Sources

2. McGraw-Hill/Irwin 2 Secondary Data –Collecting Customer Data Electronic customer councils Customer usability labs E-mail comments Chat sessions –Data used to make sound marketing decisions Value of Secondary Data Understand how secondary data fit into the marketing research process

3. McGraw-Hill/Irwin 3 Types of Secondary Data –Secondary data –Internal secondary data –Customer knowledge information –External secondary data Understand how secondary data fit into the marketing research process Nature and Scope of Secondary Data

4. McGraw-Hill/Irwin 4 Change in the Role of Secondary Data –Traditional Viewed as nonoriginal Provided historical background Viewed as filler, attachment, or appendix –Future Applied more often to specific marketing problems Cost-effectiveness of gathering secondary data Redefined the role of secondary research analyst Role of Secondary Data in Marketing Research Understand how secondary data fit into the marketing research process

5. McGraw-Hill/Irwin 5 Secondary Data and Customer Relationship Management –Customer Relationship Management (CRM) To learn more about customers’ needs and behaviors To develop stronger relationships with customers Uses combination of technology and human resourses Role of Secondary Data in Marketing Research Explain how secondary data fit into the customer relationship management process

6. McGraw-Hill/Irwin 6 Different Methods of Gathering Information –Customer Information—look at all the ways it comes into the company –Data--where and how stored and being used –Data—flow between operational and analytical systems –Analysts—searches data for customer info –Secondary data—nucleus for CRM process Role of Secondary Data in Marketing Research Understand how secondary data fit into the marketing research process

7. McGraw-Hill/Irwin 7 External Market Data –Trend analysis –Business and competitive intelligence External Customer Data –Current customers –New customers –Need analysis –Customer knowledge –Information Role of Secondary Data in Marketing Research Know how to use and extract external secondary data

8. McGraw-Hill/Irwin 8 Exhibit 3.9 Know how to use and extract external secondary data

9. McGraw-Hill/Irwin 9 Internal Support Data –Primary research support –Presentation support –Decision-making support Society of Competitive Intelligence Professionals –Survey results from marketing research firms use of secondary research Role of Secondary Data in Marketing Research Know how to use and extract external secondary data

10. McGraw-Hill/Irwin 10 Primary Reason for Using Secondary Data –Saves time and money –General rule of thumb Exhaust all potential sources of secondary data –Secondary data will become more accurate Use and Evaluation of Secondary Data Sources Demonstrate how secondary data can be used in problem solving

11. McGraw-Hill/Irwin 11 6 Fundamental Principles for Developing Better Procedures to Evaluate Secondary Data Sources –Purpose –Accuracy –Consistency –Credibility –Methodology –Bias Use and Evaluation of Secondary Data Sources Demonstrate how secondary data can be used in problem solving

12. McGraw-Hill/Irwin 12 Types of Internal Secondary –Sales invoices –Accounts receivable reports –Quarterly sales reports –Sales activity reports Traditional Internal Sources of Secondary Data List sources of traditional internal secondary data

13. McGraw-Hill/Irwin 13 Exhibit 3.2 List sources of traditional internal secondary data

14. McGraw-Hill/Irwin 14 Other Types –Customer letters –Customer comment cards –Mail order forms –Credit application –Cash register receipts –Salesperson expense report –Employee exit interview –Warranty cards –Past marketing research studies –Internet-provided information Traditional Internal Sources of Secondary Data List sources of traditional internal secondary data

15. McGraw-Hill/Irwin 15 List sources of traditional internal secondary data Exhibit 3.2

16. McGraw-Hill/Irwin 16 Seeking Secondary Data Sources –Go-Cart Approach 1.Goals 2.Objectives 3.Characteristics 4.Activities 5.Reliability 6.Tabulation Using and Extracting External Sources of Secondary Data List sources of traditional internal secondary data

17. McGraw-Hill/Irwin 17 North American Industry Classification System (NAICS) Government Documents –U S Census Data –U S Census Reports –U S Department of Commerce Data –Additional Government Reports Aging America Economic Indicators Economic Report of the President Federal reserve Bulletin Statistics of Income Survey of Current Business Identify sources of external secondary data Key Sources of External Secondary Data

18. McGraw-Hill/Irwin 18 Identify sources of external secondary data Exhibit 3.4

19. McGraw-Hill/Irwin 19 Identify sources of external secondary data Exhibit 3.5

20. McGraw-Hill/Irwin 20 Identify sources of external secondary data Exhibit 3.6

21. McGraw-Hill/Irwin 21 Secondary Sources of Business Information –Directories Business Organizations, Agencies and Publication Directory of Corporate Affiliation Fortune Magazine Directory International Directory of Corporate Affiliations Million Dollar Directory F&S Index Standard & Poor’s Registry of Corps Thomas’ Register of American Mfg Marketing Economics Guide Business Index Business Periodical Index Key Sources of External Secondary Data Identify sources of external secondary data

22. McGraw-Hill/Irwin 22 –ABI Inform Database –Sales and Marketing Management’s Survey of Buying Power MSA, counties, cities, and states in US Effective buying income (EBI) Buying Power Index (BPI –Source Book of Demographics and Buying Power for Every Zip Code in the USA Identify sources of external secondary data Key Sources of External Secondary Data

23. McGraw-Hill/Irwin 23 –Statistical Sources of Information Merchandising: “Statistical and Marketing Report” Standard and Poor’s Industrial Surveys American Statistics Index Statistical Reference Index Federal Statistical Directory Identify sources of external secondary data Key Sources of External Secondary Data

24. McGraw-Hill/Irwin 24 –Commercial Publication and Newspapers Newspapers that are indexed –The New York Times –The Wall Street Journal –Christian Science Monitor –Los Angles Times –Chicago Tribune –Boston Globe –Atlanta Constitution –Business Periodical Index Identify sources of external secondary data Key Sources of External Secondary Data

25. McGraw-Hill/Irwin 25 Characteristics of Syndicated Data Sources –Syndicated Data organized by geographic region, sales territory, market segment, product class or brand Understand the availability and use of syndicated sources of secondary data Syndicated Sources of Secondary Data

26. McGraw-Hill/Irwin 26 –Consumer Panels Benefits –Lower cost than primary data collection methods –Rapid availability and timeliness –Accurate reporting –High level of specificity Weakness –Sampling error –Turnover –Response bias Understand the availability and use of syndicated sources of secondary data Syndicated Sources of Secondary Data

27. McGraw-Hill/Irwin 27 –Examples of Consumer Panel Data Sources NPD Group National Family Opinion (NFO) Market Facts, Inc The Bases Group J. D. Power and Associates Roper Starch Worldwide Creative and Response Research Service Chilton Research Service Yankelovich Partners, Inc Understand the availability and use of syndicated sources of secondary data Syndicated Sources of Secondary Data

28. McGraw-Hill/Irwin 28 –Examples of Media Panel Data Sources Nelsen Media Research –Rating –Share –People meter –Primary purpose –Diary panels Arbitron, Inc Other Media Panels Store audits Understand the availability and use of syndicated sources of secondary data Syndicated Sources of Secondary Data

29. McGraw-Hill/Irwin 29 –Data Gathering in the Store Audit Product/brand sales in relation to competition Direct sales and inventory level at retail Effectiveness of shelf space and POP displays Sales at various price points and levels Effectiveness of in-store promotion Competitive marketing practices –Major providers of In-store Audit Services AC Nielsen (Nielsen Retail Index) Information Resources (Infoscan) Understand the availability and use of syndicated sources of secondary data Syndicated Sources of Secondary Data

30. McGraw-Hill/Irwin 30 Company Information Available on Web –To find companies URL KnowThis http://www.knowthis.com/http://www.knowthis.com/ –Business Intelligence Program (BIP) Corporate Information –http://www.corporateinformation.comhttp://www.corporateinformation.com –Additional Use of the Internet Track and monitor current alerts about competitors Search engines—Google, Yahoo!, Excite, AltaVista Understand the changing focus of secondary data usage The Internet as a Growing Source of Secondary Data

31. McGraw-Hill/Irwin 31 Understand the changing focus of secondary data usage Exhibit 3.9

32. McGraw-Hill/Irwin 32 Future of Secondary Data Sources –Explosion of Information on the Net –Technology of Information Management Interactive television and shopping Two-way satellite communication At-home on-demand shopping Understand the changing focus of secondary data usage The Internet as a Growing Source of Secondary Data

33. McGraw-Hill/Irwin 33 Value of Secondary Data The Nature and Scope of Secondary Data The Role of Secondary Data in Marketing Research Use and Evaluation of Secondary Data Sources Traditional Internal Sources of Secondary Data Using and Extracting External Sources of Secondary Data Key Sources of External Secondary Data Syndicated Sources of Secondary Data The Internet as a Growing Source of Secondary Data Summary