Secondary Data

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

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

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

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)

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

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

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?

What kind of Marketing Research does ACNielsen really do?

ACNielsen measures the sales of consumer packaged goods and consumer preferences and behavior for products sold through retail outlets (primarily food, convenience, drug and mass merchandiser)

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

Data Collection & Quality Three Sources of Information

Coupons, Retailer Ads Recordedin Omaha, Nebraska

All Data Merged in Plano, TX (EDS)and put into DB format for delivery

UPCs Coded, Store Datareceived and coded inFond du Lac, WI

Regional field reps.transmit store conditionsvia Telxon unit

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

RetailMeasurement

Consumer Panel

• Who buys what

•Where do they shop

•How often do they shop

•What’s in the shopping basket

•How loyal are shoppers

•Are shoppers switchers

ACNielsen Links Store Data to the Consumer Behind the Purchase•What brand sold

•At what price

•Under what conditions

(e.g., coupon used?)

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 Wal*Mart 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