Secondary Data

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Secondary Data

• MKTG 3342
• Fall 2008
• Professor Edward Fox

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Secondary Data - Overview
Secondary data are pieces of information that
have already been collected for a different
purpose, but may be relevant to the research
problems at hand. Primary data, in contrast, are
survey, observation, or experimental data
collected to address the problem currently under
investigation.
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Importance/Usefulness

• Secondary data are useful for addressing a number
  of research questions, for example
• Estimating market potential
• Analyzing competitors
• Sales forecasting
• Assessing industry trends
• Alerting the manager to potential problems
• Providing preliminary information to guide
  subsequent primary data collection

Hollywood stock exchange
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Advantages of Secondary Data

• Low Cost
• Less Effort
• More Timely
• Some info is available only from secondary data
  sources for example
• Market shares
• Industry data from trade associations

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Sources of Secondary Data
There are two key sources of secondary data
Other Organizations or Persons (External
Databases)
The Company Itself (Internal Databases)
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Internal Databases

• Database Marketing
• Is the creation of large computerized files of
  customers and potential customers profiles
  and/or purchase patterns.
• Is the fastest-growing use of internal database
  technology.

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External Sources of Secondary Data

• Government publications Census, Bureau of
  Labor Statistics, etc.
• Trade Associations - Newsletters, special
  reports, annual state of the industry reports,
  etc.
• Other publications - periodicals (e.g., WSJ,
  Fortune), annual reports, Moodys, Dun
  Bradstreet
• Computer retrievable databases (syndicated) -
  Lexis/Nexis, scanner data
• Internet

http//www.census.gov/
http//www.bls.gov/
http//www.moodys.com/
http//www.dnb.com/us/
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Computer Retrievable Sources of Secondary Data

• Surfing the web Search Engines
• Newsgroups on the Internet
• Internet sites devoted to a specific topic where
  people can read and post messages.
• Databases
• A number of companies offer database packages on
  DVD for personal computers or by subscription
  over the internet.

Cox Databases
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Other Sources of Secondary Data

• Geographic Information Systems
• Computer-based systems that use secondary and/or
  primary data to generate maps that visually
  display answers to research questions.

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Some Useful Numbering Systems SIC UPC

• SIC (Standard Industrial Classification) is an
  uniform numbering system for classifying
  establishments according to their economic
  activities. Total economy is divided into 11
  divisions (manufacturing/mining etc...) which are
  further divided into major groups and subgroups.
  Example
• 57 Home Furniture, Furnishings
• 571 Home Furniture and Furnishing Stores
• 5715 Furniture Stores
• Government and several non-govt. industrial data
  are organized by SIC codes now being replaced by
  North American Industrial Classification Codes
  (NAICS)
• UPC Numbering system used in consumer goods

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SIC System for Classifying Retailers
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Limitations of Secondary Information

• Lack of Availability
• For some research questions there are simply no
  available data. For example, if Kraft General
  Foods wanted to evaluate the taste, texture, and
  color of three new gourmet brownie mixes, there
  are no secondary data that would answer these
  questions.

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Limitations of Secondary Information

• Lack of Relevance
• May be measured in units that cannot be used by
  the researcher.
• May relate to a sample other than the intended
  target.
• May be outdated.
• Inaccuracy
• Always assess the accuracy of the data. There are
  a number of potential sources of error when a
  researcher gathers, codes, analyzes, and presents
  data.

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Summary of Key Points

• Secondary data are information previously
  gathered for a different purpose that may be
  relevant to the problem at hand.
• Secondary data can come from sources internal to
  the organization or external.
• The internet has, in many ways, enabled the
  gathering of secondary data.
• Secondary data are generally useful, low-cost,
  rapidly available sources of information.
• Always look for secondary data first