Secondary Data

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Secondary Data
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Secondary Data

• Secondary Data -- data gathered for purposes
  other than the present study
• Advantages
• Cheap in terms of time and money
• Disadvantages
• Data Fit
• Accuracy

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Secondary Data

• Types of Secondary Data
• Internal -- originates within the organization
  for which the research is being conducted
• Least costly type of secondary data
• External -- data found from sources external to
  the organization commissioning the research
• Cost more than internal data, but a wealth is
  available
• Library Sources
• Government Sources
• Syndicated Sources

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Secondary Data (Internal)

• Financial Statements
• Sales Reports (by Region, Sales Person, Etc.)
• Customer Databases
• Collection of data about customers developed from
  internal sources (could be from MR activities)
• Needs to be large and extensive to be effective

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Secondary Data (Internal)

• Customer Databases
• Data mining (use of statistical techniques to
  identify patterns hidden in a database) is needed
• Complex statistical methods are used
• Disciminant analysis
• Cluster analysis
• Uses of data mining
• Customer Acquisition -- look to identify types
  of customers to whom we appeal
• Customer Retention (Abandonment) identify
  customers we want to keep (get rid of)

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Secondary Data (External)

• Library Sources (Magazines and Other Publications
  many on Internet)
• Possible uses
• Determine market size
• Determine market potential
• Describe the market
• Government Sources
• Census data
• State/Country economic data

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Secondary Data (External)

• Standardized Marketing Information Services
• Market Analysis
• Dun Bradstreet Market Identifiers
• Offers demographic overviews of various markets
• Market Share Data
• Nielsen Retail Index
• Consumer Services
• National Panel Diary
• What are people buying
• National Family Opinion
• What are people thinking
• Ad Exposure
• Nielsen TV Ratings
• Arbitron Radio Listening Ratings

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Example of Syndicated Research AC Nielsen

• ACNielsen provides information like the following
  to the grocery, health beauty care, tobacco,
  snack foods and beverage industries.
• Sales volume - How big is my market?
• Trends - Is my market growing or shrinking?
• Shares - Are competitors taking my business?
• Pricing - Can I raise my price and increase
  profits?
• Brand Shifting - Who will my new products get
  volume from?
• Distribution- Can consumers find my new product?
• Trial and Repeat - Who is trying my new product?
  Will they buy it again?

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What kind of Marketing Research does ACNielsen
really do?
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Tracking What Happens at the Retailer Point of
Sale . . .

• ACNielsen Collects Data in
• In over 36,000 retail outlets (US)
• Through Scanning and in store Auditing

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Data Collection Quality Three Sources of
Information
Coupons, Retailer Ads Recorded in Omaha, Nebraska
UPCs Coded, Store Data received and coded in Fond
du Lac, WI
Regional field reps. transmit store
conditions via Telxon unit
All Data Merged in Plano, TX (EDS) and put into
DB format for delivery
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ACNielsen Consumer PanelTracking what happens in
the home

• 61,500 Households
• Geographically dispersed demographically
  balanced
• Methodology allows for all-channel and retail
  account analysis
• Projectable at the national, regional, market
  account level

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ACNielsen Links Store Data to the Consumer Behind
the Purchase

• Who buys what
• Where do they shop
• How often do they shop
• Whats in the shopping basket
• How loyal are shoppers
• Are shoppers switchers

• What brand sold
• At what price
• Under what conditions
• (e.g., coupon used?)

Consumer Panel
RetailMeasurement
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Fun Facts from Nielsen Data

• Consumers who buy IBC Root Beer at Target will
  spend twice as much money as an IBC consumer who
  shops at WalMart Source ACNielsen Homescan
• U.S. Consumers spent over 2.0 billion in 2002 on
  Pre-Cut Fresh Salad Mix. Source ACNielsen
  Strategic Planner
• The unit sales of the Salsa category surpassed
  the sales of the Ketchup category for the first
  time in December of 1999 Source ACNielsen
  Strategic Planner
• Only 95.4 of all U.S. households purchase toilet
  paper Source ACNielsen Homescan - 2002