Secondary Data

Secondary Data
-Data not gathered for the immediate study at hand but for some other purpose.
-Already exists
Internal Sources of Secondary Data
-Internal Secondary Data: Data collected by company for accounting purposes, marketing activity reports, and customer knowledge.
-Customer Knowledge Information: Information from customers that is unsolicited and can be used for marketing purposes
-Examples…
Sales
Surveys
Complaints and Returns
Customer feedback
Blogs, forums
External Sources of Secondary Data
-External Data: Data collected by outside agencies like the federal government, trade associations, market research firms, or periodicals.
-Examples…
Business Week
U.S. Census Data
A.C. Nielsen
J.D. Power & Associates
Sales and Marketing Management’s Survey of Buying Power
Common Secondary Data Variables
-Demographics: Population, density, growth; population by age, race, ethnic group
-Employment: By occupation, industry; unemployment
-Economic Data: Income, housing starts
-Competitive Characteristics: Wholesale/retail sales; number and types of retail competitors
-Supply/Distribution Characteristics: Facilities, cost, transportation infrastructure
-Government Regulations: Taxes, licensing, zoning
-International Considerations: Trade barriers, social customs, legal/political climate

-Major decision in Pullman effects buying decisions; Schweitzer to add up to 800 jobs for young parents

How important is Secondary Data?
-Historically
>Viewed as context for the primary data
>Not seen as that exciting or central
-Today
>60% of marketing research firms use secondary data, frequently to monitor competitive and business intelligence
>Viewed as critical (not just perfunctory)
>Very first and possibly only step needed, given large amounts of existing data
>Decisions must be made more quickly; Less time to collect primary data
>Secondary data also more cost efficient
>Also critical to customer relationship management
>A process of managing customer relationships based on the integration of customer information throughout the business enterprise in order to achieve maximum customer satisfaction and retention.

-Secondary research is widely available, it is critical to use
-Can be more cost effective
-CRM: Marketing is about establishing relationships and become a continuos decision set

Secondary Data Advantages
-Saves time
-Saves money
-Can potentially provide much more data than one organization can collect
Secondary Data Disadvantages
-Data may not be accurate due to bias, poor methodology
-Data may be dated
-Data may not fit researcher’s purpose
-Wrong unit of analysis (e.g., county level, but researcher needs city level data)
-Not as precise as needed (e.g., income in $10 increments, but needs $5k increments)
-Mismatch of needs
-Must evaluate quality
Criteria for Evaluating Secondary Research
The secondary data source should….
-Match the goals of your project
-Be accurate, current, and generalizable to your target
-Be consistent with other sources of secondary data
-Be from a credible source
-Use a sound methodology
-Be free from bias (hidden agendas)
Purchase and Consumption Patterns
Survey of Buying Powers
-Retail sales
-Population
-Effective buying income (EBI)
>Income – taxes
-Buying power index (BPI)
>Higher = more power
-Broken down by city, county
-Some local BPIs (2004)
>Pullman = .0103
>City of Spokane = .0694
>City of Seattle = .2565
National Purchase Diary (NPD) Group
-The NPD Group, founded in 1967, is the leading global provider of consumer and retail market research information for a wide range of industries. We provide critical consumer behavior and point-of-sale (POS) information and industry expertise across more industries than any other market research company.
-Through our consumer panel, retail sales tracking services, special reports, and custom research, we help our clients understand and profit from consumer and retail trends. Our data tells them who is buying, what, where, and why in local, national, and international markets.
GfK Group
-The GfK Group is one of the largest market research companies in the world. The Group has a staff complement of approx. 9,300 employees working in 115 operating companies covering more than 100 countries of the world who deliver the knowledge on markets and sectors which our clients in industry, retail, the media and the service sector need for their decisions.
IMS Health
-IMS Health is the world’s leading provider of market intelligence to the pharmaceutical and healthcare industries. We offer a variety of solutions to help clients understand the marketplace, improve marketing effectiveness and optimize sales productivity. With a presence in more than 100 countries and over 50 years of experience, IMS applies leading-edge technologies to transform billions of pharmaceutical transactions collected from thousands of sources into strategic insights. Interpreted and analyzed by IMS experts, these insights are an unmatched source of trends and perspectives about the pharmaceutical marketplace – precise market intelligence that can be translated into action.
Consumer Attitudes, Opinions and Behaviors
Harris Interactive
-In an increasingly chaotic and competitive world, Harris Interactive can provide clarity and confidence. We believe that market research helps our clients understand the drivers of decision making and can strengthen enterprise equity. By focusing on the full spectrum of the dynamics involved in making choices —and especially why those are made— we can help our clients make better choices too. Providing clients with this accurate knowledge will help them achieve measurable and enduring performance improvements.
-We study people. Specifically, why people make the decisions they do and how our clients can best influence those decisions.
Experian Consumer Research
-We provide our clients with consumer behavior data that allows them to better understand their customers and prospects, as well as know where and how to advertise most effectively.
-Experian Consumer Research conducts on-going consumer behavior studies to provide answers to the who, what, where, when, how, how often, and why questions. Through the data we collect from our various consumer behavior studies, we can give our clients up-to-date information on their target consumers including, what magazines they read, what television programs they watch, what products they buy, and even how they feel about certain issues. Our extensive consumer studies report over 60,000 data variables in over 8,000 product categories and 450 plus brands, major media usage behavior, and in-depth consumer behavior demographics to give our clients the ability to make the most of their marketing budget.
JD Powers and Associates
-Established in 1968, J.D. Power and Associates is a global marketing information firm that conducts independent and unbiased surveys of customer satisfaction, product quality and buyer behavior. Today, the firm’s services include industry-wide syndicated studies; proprietary (commissioned) tracking studies; media studies; forecasting; and training services, as well as business operations analyses, and consultancies on customer satisfaction trends.
-We represent the voice of the customer by translating survey responses from consumers and businesses into studies and reports that companies worldwide use to improve their business. In fact, J.D. Power and Associates has developed and maintains one of the largest, most comprehensive historical customer satisfaction databases in existence, which includes feedback on the shopping, buying, and ownership experiences for a variety of products and services.
Retail Data
AC Neilsen
-Our major market-measurement services provide comprehensive coverage of:
-Sales to consumers of fast-moving consumer packaged goods, gathered at the point of sale in retail stores of all types and sizes. These retail measurement services provide clients with essential facts on how their products are performing compared with their competitors, and on trends and changes in market conditions and sales results. They also provide critical information on the use of promotional activities at the retail level, such as special displays or pricing, and on distribution and stock conditions in retail stores.
-Purchases by consumers of packaged goods and other products, gathered through participating panels of consumer households and through customized studies. These consumer panel and customized research services provide a foundation for understanding and analyzing consumers’ motivations, attitudes, behavior, shopping patterns and demographic characteristics.
Information Resources
-InfoScan
-Sales data based on checkout scanners (32,000 locations!).
-Collects data from all retail outlets within a chain (vs. a sample).
-Also has consumer panel (50,000!).
Media Data
AC Neilsen (Neilsen Rating Index)
-Leader in media research in U.S.
-5,000 homes have a “people meter” that records when a TV is on, what channel is on, how much time is spent on each channel, and who’s watching.
-Marketers able to use this information to target desired segments.
Arbitron
-Helping you understand, target and reach customers more effectively is the goal of the Arbitron Advertiser Marketing Services team. Our Scarborough Research service provides local, regional and national consumer information to help you:
-Target your multicultural marketing efforts more precisely
-Choose the best partner for co-branding and promotional partnerships
-Identify what events and sponsorship opportunities match best with your customer’s interest
-Find out who’s buying your competitors’ products so you can compete more effectively and build your own brand loyalty
-Make better-informed channel decisions with information on retail and product consumption
-Improve your media strategy by identifying what media your target consumers use
-Links viewing w/income, lifestyles, shopping habbits
Mediamark Research & Intelligence
-Mediamark Research has a singular goal: to provide the sharpest picture possible of American consumers – who they are, what they buy, what they think – and how to reach them.
-For more than 25 years, MRI has been the dominant voice in media and consumer research in the United States. No other organization – not even the Census Bureau – knows more about American consumers.
-MRI’s Survey of the American Consumer™, used in most media and marketing plans in the country, is the primary source of audience data for the U.S. consumer magazine industry and the most comprehensive and reliable source of multi-media audience data available. The Survey’s multi-dimensional database provides marketers with a high resolution view of audiences of all major media, their demographics and lifestyles, actions and attitudes, product usage and brand loyalty.
-Used to increase ad’s ability to reach its target audience. (View the webcast)-
Internet Data Collection
Greenfield Online
-Greenfield Online serves the online data collection needs of the largest research companies in the industry and help companies get closer to their consumers by gathering consumer feedback. We serve the needs of more than 300 marketing research firms and are considered one of the leading online panel companies in the industry.
-Since 1994, Greenfield Online has been providing consumers, like you, with the ability to voice their opinions by participating in online research surveys and focus groups.
-5 million panel members
-Demographic data, brand awareness, consumer interest in products, new advertisement testing.
Government Resources
The US Census Bureau
-The Census Bureau serves as the leading source of quality data about the nation’s people and economy. We honor privacy, protect confidentiality, share our expertise globally, and conduct our work openly. We are guided on this mission by our strong and capable workforce, our readiness to innovate, and our abiding commitment to our customers.
KnowThis.com
-Overall resource for information about marketing, including many good links on marketing research and secondary data.