Secondary Sources of Marketing Data

Marketing ResearchAaker, Kumar, Leone and Day Twelfth EditionInstructor’s Presentation SlidesChapter Five2Secondary Sources of Marketing DataMarketing Research 12th Edition Data SourcesPrimary DataSecondary Data3Marketing Research 12th Edition Sources of Secondary Data4Uses of Secondary DataMay provide enough information to resolve the problem being investigatedCan be a valuable source of new ideas that can be explored later through primary researchActs as a prerequisite to collecting primary data and can help in designing the primary data collection processHelps to define the problem and formulate hypotheses about its solutionHelps in defining the population / sample / parameters of primary researchCan serve as a reference base to compare validity of primary data5Marketing Research 12th Edition Benefits and Limitations of Secondary DataLow costLess effortLess timeSometimes more accurateSometimes only way to obtain dataCollected for some other purposeNo control over data collectionMay not be accurateMay not be in correct formMay be outdatedMay not meet data requirementsAssumptions have to be made6BenefitsLimitationsMarketing Research 12th Edition In some cases secondary data can be more accurate than primary data. For example, if a company wants information on the sales, profits, and so forth, of other companies, it can get more reliable and accurate information from government-released sources, trade associations, or general business sources than from the companies themselves.Internal Sources of Secondary DataInternal RecordsAccounting DataSales ReportsInventory ManagementCustomer Database7Marketing Research 12th Edition External Sources of Secondary DataPublished data sources (e.g., Census, publications of various trade associations)Trade directoriesComputer retrievable databases ("online" databases)8Marketing Research 12th Edition Classification of Computer-retrievable Databases9Computer Retrievable DatabaseBased on the Method of Storage and Retrieval of InformationBased on the Type of InformationSourceReferenceDirect from VendorsIndirect through NetworksDirect from ProducerInternetCD-ROM DatabasesOn-line DatabasesFloppy Disc DatabasesMarketing Research 12th Edition Classifying computer-retrievable databasesOnline MethodsScope of information availableSpeed of information access and retrievalCommercially available search procedures provide considerable flexibility and efficiencyRely solely on the accuracy of the abstract authorDepend on the journal and article selection policy of the database producerMight miss important information, or retrieve a lot of irrelevant data if searching by “keyword”10LimitationsAdvantagesMarketing Research 12th Edition NAICS CodeNorth American Industrial Classification SystemDeveloped to provide a consistent framework for the collection, analysis and dissemination of industrial statistics Identified by a six-digit codeSixth digit identifies subdivisions of NAICS industries that accommodate user needs in individual countriesHas 20 broad sectors11NAICS level NAICS code Description Sector 51 Information Subsector 515 Broadcasting (except Internet)Industry group 5151 Radio and TVIndustry 51511 Radio BroadcastingU.S. Industry 515112 Radio StationsMarketing Research 12th Edition SOURCE: Secondary SourcesFactors to Be Considered:Who has collected the data (did they have adequate resources)?Why was the data collected (how interests of the agency matches with ours)?How was the data collected (what is the quality of data on-hand)?What data was collected (geographic and demographic limitations)?When was the data collected (how old/obsolete is the data)?Is there consistency?12Marketing Research 12th Edition Applications of Secondary DataDemand EstimationMonitoring the EnvironmentSegmentation and TargetingDeveloping a Business Intelligence System13Marketing Research 12th Edition Applications of Secondary Data (Contd.)14Demand EstimationCensus dataNorth American Industry Classification System (NAICS)Trade association dataExperts and authoritiesMonitoring the EnvironmentPress releasesLegislation and lawsIndustry newsBusiness and practitioner literature, such as magazinesSegmentation and TargetingPRIZMCLUSTER PLUSDMINAICSTIGERDeveloping a Business Intelligence SystemCompetitor’s annual reportsPress releasesBlogsCompetitors’ web pagesMarketing Research 12th Edition Sources of Secondary Data for International Marketing Research15Economic DataUnited NationsWorld BankBusiness International PublicationsEuromonitorWorld CastsIndustry DataUnited Nations YearbooksU.S. Department of CommerceThe Economist (publication)WorldcastsBackground DataDun and Bradstreet publications (e.g., Exporter's guide)Price Waterhouse publicationsMarketing Research 12th Edition Problems Associated with Secondary Data in International ResearchData AccuracyComparability of Data16Marketing Research 12th Edition Applications of Secondary Data in International ResearchSelecting countries or markets that merit in-depth investigationMaking an initial estimate of demand potential in one or more countries using:Lead-lag AnalysisSurrogate IndicatorsCross-sectional Data / Barometric ProceduresEconometric Forecasting ModelMonitoring environmental changes17Marketing Research 12th Edition 18End of Chapter Five