Chapter Four Secondary Data Databases Copyright 2004 John

Learning Objectives Learning Objective 1. To understand how to create an internal database. 2. To learn about building a database from Web site visitors. 3. To Become familiar with data mining. 4. To understand the advantages and disadvantages of using secondary data. 5. To understand the role of th Internet in obtaining secondary data. 6. To be come familiar with the types of databases available on CD-ROM. 7. To learn about types of information management systems. John Wiley & Son, Inc 2

The Nature of Secondary Data Learning Objective To understand the advantages and disadvantages of secondary data. • Secondary Data: – Data that have previously been gathered and that might be relevant to the problem at hand. • Primary Data: – New data collected to solve a particular problem. • Internal: – Information originating within the company • External: – Outside sources of secondary information John Wiley & Son, Inc 3

The Nature of Secondary Data • Learning Objective To understand the advantages and disadvantages of secondary data. Advantages of Secondary Data 1. Clarify the problem. 2. May provide a solution. 3. May provide primary data research method alternatives. 4. May alert the marketing researcher to potential problems or difficulties 5. May provide necessary background information and build credibility for the research report John Wiley & Son, Inc 4

The Nature of Secondary Data • Learning Objective To understand the advantages and disadvantages of secondary data. Limitations of Secondary Data – – – Lack of Availability Lack of Relevance Inaccuracy 1. 2. 3. 4. 5. Who gathered the data? What was the purpose of the study? What and when was the information collected? How was the information collected Is the information consistent with other information? – Insufficiency John Wiley & Son, Inc 5

Internal Data Bases Learning Objective To understand how firms create an internal database. • Internal Database – a collection of related information developed from data already within the organization. • Creating an Internal Database – Salesperson’ “call report” – Sales results – Customer preferences John Wiley & Son, Inc 6

Internal Data Bases Learning Objective To understand how firms create an internal database. • The Growing Importance of Internal Database Marketing – Database Marketing • A large computerized file of customer and purchase patterns. – Micromarketing • Database marketing can get a customized, individual message to everyone simultaneously through direct mail John Wiley & Son, Inc 7

Internal Data Bases Learning Objective To learn about building a database from Web site visitors. • Creating Databases From a Web Site -A Marketer’s Dream – Customer’s link to an online store is a two-way electronic link – Allows online merchant to gather information about the customer • Cookies – Text file place on a user’s computer in order to identify the user when there is a return visit to the Web site John Wiley & Son, Inc 8

Internal Data Bases Learning Objective To learn about building a database from Web site visitors. • Data Mining – Neural network – Data mining • The use of statistical and other advanced software to discover non-obvious patterns hidden in a database – Potential Uses of Data Mining in Marketing: • • Customer acquisition Customer retention Customer abandonment Market basket analysis John Wiley & Son, Inc 9

Internal Data Bases Learning Objective To learn about building a database from Web site visitors. • The Battle over Privacy – Privacy policies will be mandatory – Clear choice to “opt-in” or “opt-out” – Ability to correct sensitive information – Penalties for noncompliance. John Wiley & Son, Inc 10

Finding Secondary Data on the Internet Learning Objective To understand the role of the Internet in obtaining secondary data. • URLS (Uniform Reference Locator) – Address that identifies a particular location • Search Engines – Alta. Visa, Dogpile, and Google • Sites of Interest to Marketing Researchers – See www. wiley. com/college/mcdaniel • Periodical, Newspaper, and Book Databases • Newsgroups – Function like bulletin boards for a particular topic or interest John Wiley & Son, Inc 11

Finding Secondary Data on the Internet Learning Objective To understand the role of the Internet in obtaining secondary data. • There are 70 federal agencies that publish data – Statistical Universe or through LEXIS-NEXIS STATIS • www. cispubs. com – FEDSTATS • www. fedstats. gov – White House Briefing Room • www. whitehouse. gov/WH/html/briefroom. html – Economic issues • www. whitehouse/gov/fsbr/esbr. html – Social issues • www. whitehouse. gov/fsbr/ssbr. html John Wiley & Son, Inc 12

Databases on CD-ROM Learning Objective To become familiar with the types of databases available on CD-ROM • Companies that off databases – Claritas International • Compass/Agency • Compass/Newspaper – Info. USA • See list of databases in Exhibit 4. 1 John Wiley & Son, Inc 13

Databases on CD-ROM Learning Objective To become familiar with the types of databases available on CD-ROM • Marketing Research Aggregators – Marketing Research Aggregator – Role of Aggregator Firms – Major Aggregators • • • All. Net. Research. com Profound. com Bitpipe. com USADATA. com Market. Research. com John Wiley & Son, Inc 14

Information Management Learning Objective To learn about types of information management systems • Information Management – Development of a system for capturing, processing, and storing data so that it can be readily found and retrieved when needed for management decision making • Geographic Information System (GIS) – Includes a demographic database, digitized maps, and software that enables the user to add corporate data to the mix • Decision Support Systems (DSS) – Designed to support the needs and styles of individual decision makers • • Interactgive Flexible Discovery-oriented Easy to learn and use John Wiley & Son, Inc 15

SUMMARY Learning Objective • The Nature of Secondary Data • Internal Databases • Finding Secondary Data on the Internet • Databases on CD-ROM • Information Management John Wiley & Son, Inc 16