Essentials of Marketing Research
Chapter 6:
Secondary Data Research in a Digital Age
SECONDARY DATA
DATA GATHERED AND RECORDED BY
SOME ONE ELSE PRIOR TO AND FOR
THE PURPOSES OTHER THAN THE
CURRENT PROJECT IS OFTEN:
– HISTORICAL
– ALREADY ASSEMBLED
– NEEDS NO ACCESS TO SUBJECTS
Secondary and Syndicated Data
Advantages of Secondary Data
• Saves time (can usually obtain from library, internal
records, or Internet)
• Saves money (collecting primary data can be very
expensive)
• Easily availability (especially with internet)
• Highlights & focuses the area of primary data
collection.
• Check for secondary data first (provides better
understanding of the problem & information needed)
Disadvantages of Secondary Data
• Problems with Fit
– data was collected for other purposes
– variables and measurement may be mismatched
or inappropriate for current needs
• Problems with Accuracy
– secondary sources (may be reported or
interpreted incorrectly) outdated
– purpose of publication (situational bias)
Disadvantages of Secondary Data
• Problems with Units of Measurement
– Age group, Household versus individual, etc.
• Problems with time period
– Data or information may be outdated.
• General Evidence of Quality
– look for clues about collection/reporting
Evaluating Secondary Data
• What was the purpose of the study?
• Who collected the information? (Are they
competent, reputable, unbiased?)
• What information was collected? (Examine
the methodology.)
• How was the information obtained? (sample)
• How consistent is the information with other
information?
Evaluating Secondary Data
Applicability
to project
objectives
Does the data help to
answer questions
set out in the
problem definition?
Does the data apply to
the time period of
interest?
Does the data apply to
the population of
interest?
Evaluating Secondary Data (continued)
Applicability
to project
objectives
Accuracy
of the data
Do the other terms
and variable
classifications
presented apply?
Are the units of
measurement
comparable?
If possible, go to the
original source of the
data?
Evaluating Secondary Data (continued)
Is the cost of data
acquisition worth it?
Accuracy
of the data
Is there a possibility
of bias?
Can the accuracy
of data collection
be verified?
OBJECTIVES FOR SECONDARY DATA
STUDIES
• Fact Finding
• Model Building
• Data Based Marketing
COMMON RESEARCH OBJECTIVES
FOR SECONDARY DATA STUDIES
Fact Finding
- Identifying consumption patterns
- Tracking trends
- Environmental scanning
Model building
- Estimating market potential
- Forecasting sales
- Selecting trade areas and sites
Data Base Marketing
- Development of Prospect Lists
- Enhancement of Customer Lists
- Relationship marketing
FACT FINDING
• IDENTIFY CONSUMER
BEHAVIOR
• TREND ANALYSIS
• ENVIRONMENTAL
SCANNING
MODEL BUILDING
• MARKET
POTENTIAL
• FORECASTING
SALES
• ANALYSIS OF
TRADE AREAS
DATA BASED MARKETING
• PRACTICE OF MAINTAINING A
CUSTOMER DATA BASE
• NAMES
• ADDRESSES
• PAST PURCHASES
• RESPONSES TO PAST EFFORTS
• DATA FROM NUMEROUS SOURCES
Types of Secondary Data
• Internal
– records, reports, etc. from inside the company
• External
– numerous sources
– key is knowing where to look and how to
search
– Internet is becoming a major source of
secondary data (but how accurate?)
Sources of Secondary Data:
I. INTERNAL DATA
INTERNAL AND PROPRIETARY DATA IS
MORE DESCRIPTIVE
• ACCOUNTING
INFORMATION
• SALES INFORMATION
• BACKORDERS
• CUSTOMER COMPLAINTS
Usage of Internal data:
DATA MINING
Analyze large volumes of
internal data and discover
patterns about a firm’s
customers and products.
Sources of Secondary Data:
II. EXTERNAL DATA
• CREATED, RECORDED, OR
GENERATED BY AN ENTITY OTHER
THAN THE RESEARCHER’S
ORGANIZATION
• GOVERNMENT
• TRADE ASSOCIATIONS
• NEWSPAPERS AND JOURNALS
External Secondary Data Source
• Published Data - available from libraries or
other sources (free or nominal fee)
• Syndicated Data - specialized information
purchased by multiple subscribers
– Ex: A.C. Nielsen’s
EXTERNAL DATA
•
•
•
•
•
LIBRARIES
THE INTERNET
VENDORS
PRODUCERS
BOOKS AND PERIODICALS
EXTERNAL DATA
• GOVERNMENT SOURCES
• MEDIA SOURCES
• COMMERCIAL SOURCES
External data:Traditional Distribution
Information Producer
(Federal Government)
Indirect Channel
Using
Intermediary
Library
(Storage of
government
documents
and books)
Company User
External data: Traditional Distribution
Information Producer
(Federal Government)
Direct Channel
Company User
External data: Direct, Computerized
Distribution Using Intermediary
Information producer’s
(Just-in-time inventory partner)
computerized database
Company user
Modern Distribution of Secondary Data
Information producer A
(Federal governmentcensus data)
Information producer B
(Grocery store-retail
scanner data)
Vendor/external
distributor
(Computerized database
integrating all three data
sources for any
geographic area)
Information producer A
(Federal governmentcensus data)
Information producer C
(Audience research companytelevision viewing data)
COMMERCIAL SOURCES
• Market share data companies like A.C.
Nielsen provide information about sales
volume and brand share over time
• Demographic and census updates—many
organizations supply census updates, in
easy-to-use or custom formats
COMMERCIAL SOURCES
• Attitude and public opinion research—
syndicated services report the findings of
opinion polls
• Consumption and purchase behavior data
• Advertising research—readership and
audience data
SINGLE SOURCE DATA
DIVERSE TYPES OF DATA OFFERED
FROM A SINGLE SOURCE
– E.G. TELEVISION VIEWING AND
SCANNER PURCHASE DATA
– E.G. PRIZIM AND CLUSTERPLUS
Syndicated Data
• External, secondary data that is supplied to
subscribers for a fee.
• Reduces costs for each subscriber; usually
dependable and regular; maybe current
• But: little control over data; may not match
needs perfectly; no competitive advantage
(everyone can get the same data); may have
to commit to long, costly contract
Uses of Syndicated Data
• Measuring consumer attitudes and opinions
– Gallup polls
• Defining market segments
– Example: SIC (Standard Industrial Classification); geodemographics
• Conducting market tracking (multi-levels)
• Monitoring media and promotion effectiveness
–
–
–
–
TV - Nielsen TV viewing, audiometer, peoplemeter
Radio - Arbitron
Print - Starch Readership Service
Multimedia - Simmons Study of Media and Markets.
• Single Source data - Nielsen.
GLOBAL SECONDARY DATA
•
•
•
•
•
TYPICAL LIMITATIONS
ADDITIONAL PITFALLS
UNAVAILABLE
QUESTIONABLE ACCURACY
LACK OF STANDARDIZED
TERMINOLOGY
Key Issues in Using Secondary Sources
• Identify information gaps. What do you
need to know?
• Identify possible sources.
• Search appropriate sources.
• Evaluate findings.
• Continue searching if information is
inadequate or questionable.
Common Information Needed:
• Company information
• Industry information
• Market information
Company Information
• Compact Disclosure (CDROM)
• Dun & Bradstreet (hardbound in library)
– Million Dollar Directory
– America’s Corporate Families
• Company website (www.companyname.com)
• Other Internet: Searche Engines; Edgar; Hoovers; Wall
Street Journal; CNN; Newspaper Indexes; many others...
• ABI/Inform (searches current periodicals)
Industry Information
• Census of Retail Trade
– government docs or Internet
• County Business Patterns (CDROM)
• Internet or ABI/Inform Searches
– use keywords such as “airline industry”
• Edgar database has some industry analysis
in each company’s 10K.
Market Information
• U.S. Census (Gov’t docs or Internet)
• Company/industry info may have some
• American Demographics Magazine
– searchable index (marketingtools.com)
• Sales & Marketing Management’s Survey of Buying Power
(EBI; BPI)
• Local governments (Chamber of Commerce or websites)
• ABI/Inform searches
All in One Spot?
• Check out our class page through the UNT
Library web site!
http://www.library.unt.edu/classes/coba/MKTG3710W
EBSITES.htm
• OR: Sometimes old-fashioned methods
work best (ask librarian; bound volumes in
library; contact someone who knows company, chamber of commerce, etc.)