Chapter Three: Secondary Data Collection and Management

McDaniel │ Gates │ Sivaramakrishnan │ Main
Chapter Three: Secondary Data Collection
and Management
Chapter Three: Secondary Data Collection and Management
• Understand what secondary data is, as well as its
advantages and disadvantages
• Describe how firms create an internal database
• Explain the process of data mining
• Understand behavioural targeting
• Describe the implications of marketing research on
privacy concerns
• Describe the types of information management systems
Secondary Data
• Research results that are already published
• May be found internally (within a company) or externally
(outside the company)
• Should seek both if possible
• Collect secondary data first—before primary data (new
data gathered to help solve the problem under
Advantages of Secondary Data
• Saves time, money, and inconvenience
• Can help to clarify or refine the issue or problem
• Might provide solution to research problem
• Might provide primary data research alternatives
• Can alert the researcher to research problems
• Provides background information, enhancing research
• May provide the sample frame
Limitations of Secondary Data
Lack of availability
Not relevant
Inaccurate information: always ask yourself:
Who collected the data?
What was the original study’s purpose?
What was collected and how?
When was it collected?
Is it consistent with other data?
Internal Databases
• A collection of related information developed from data
within the organization
• Can be created from sales information
• Is used as a marketing tool
Internal Databases
Database Marketing
• Marketing that relies on the creation of a large
computerized file of customers’ and potential customers’
profiles and purchase patterns to create a targeted
marketing mix
• Allows for individualized direct marketing and
customer relationship management
Internal Databases
Neural network – a computer program that mimics the
processes of the human brain and is capable of learning
from examples to find patterns in data
Data mining
• The use of statistical and other advanced software to
discover non-obvious patterns hidden in a database
• Used in marketing for:
Customer acquisition
Customer retention
Customer abandonment
Market basket analysis
Internal Databases
Behavioural targeting
• the use of online and offline data to understand a
consumer’s habits, demographics, and social
networks in order to increase the effectiveness of
online advertising
Internal Databases
Battle over privacy:
• Identity theft
• Government actions – laws to protect personal
information and privacy
• Payment for revealing private information
Internal Databases
Marketing research aggregators:
• A company that acquires, catalogues, reformats,
segments, and resells reports already published by
large and small marketing research firms
• A growing area
• Examples:,,
Information Management
Geographic Information Systems (GIS):
• Computer-based system
• Uses secondary and/or primary data to generate maps
• Visually displays various types of data geographically
Decision Support Systems (DSS):
• Interactive, personalized information management
• Designed to be initiated and controlled by individual
• View company information as you wish to see it
• Can also ask what if questions
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