Chapter four Learning Objectives Secondary Data & Databases Copyright © 2002 South-Western/Thomson Learning Learning Objectives 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. 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 Learning Objectives The Nature of Secondary Data 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. Learning Objectives The Nature of Secondary Data To become familiar with data mining. Potential Uses of Data mining in marketing: •Customer acquisition •Customer retention •Customer abandonment •Market basket analysis 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. Learning Objectives The Nature of Secondary Data To become familiar with data mining. 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 Learning Objectives Secondary Data To understand the advantages and disadvantages of secondary data. 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. Secondary Data Learning Objectives To understand the advantages and disadvantages of secondary data. 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 1. Who gathered the data? Secondary Data Learning Objectives To understand the advantages and disadvantages of secondary 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 The New Age of Secondary Information: The Internet and the World Wide Web Learning Objectives To understand the role of the Internet in obtaining secondary data. Finding Secondary Data on the Internet Search Engines Directories Academic and professional directories Commercial portals AOL Search AltaVista Go to AOL SEARCH Go to AltaVista The New Age of Secondary Information: The Internet and the World Wide Web Learning Objectives To understand the role of the Internet in obtaining secondary data. Ask Jeeves Go to askjeeves Direct Hit Go to directhit Excite Go to excite FAST Search Go to alltheweb Go/Infoseek Go to Go GoTo Go to GoTo Google Go to google HotBot G0 to hotbot The New Age of Secondary Information: The Internet and the World Wide Web Learning Objectives To understand the role of the Internet in obtaining secondary data. HotBot Go to hotbot IWON Go to iwon Inktomi Go to inkktomi LookSmart Go to LookSmart Lycos Go to Lycos MSN Search Go to search MSN Learning Objectives Finding Federal Government Data on the Internet To understand the role of the Internet in obtaining secondary data. There are 70 federal agencies that publish data Go to www.cispubs.com • Statistical Universe • FEDSTATS Go to www.fedstats.com •Periodical, Newspaper and Book Databases ABI/Inform Global Lexis-Nexis Dow Jones Interactive Periodical Abstracts Research II (PAR) Electric Library Learning Objectives Finding Federal Government Data on the Internet To understand the role of the Internet in obtaining secondary data. 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 Learning Objectives Databases on CD-Rom To understand the role of the Internet in obtaining secondary data. 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. Learning Objectives Databases on CD-Rom To learn about types of information management systems. 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 Learning Objectives SUMMARY • The Nature of Secondary Data • Secondary Data • The New Age of Secondary Information: The Internet and the World Wide Web • Finding Federal Government Data on the Internet • Databases on CD-Rom Learning Objectives The End Copyright © 2002 South-Western/Thomson Learning