GLOBAL MARKETING RESEARCH V Kumar 1 Dr V
GLOBAL MARKETING RESEARCH V. Kumar 1 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
CHAPTER 5 Secondary Data 2 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Chapter Outline What is Secondary Data? What are the sources of Secondary Data? How is Secondary Data used? What are its advantages and disadvantages? What are potential problems in collecting secondary data? What are the guidelines of effective secondary online data research? 3 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Secondary Data Secondary data refers to readily available data that was collected for a different purpose than the solving the present problem • Researchers typically use this as a starting point to get a deeper look into the problem itself. • Data can typically be collected from: • Internal Sources • External Sources 4 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Sources of Secondary Data 5 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Secondary Data Classification 6 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Internal Sources Information that can be obtained with the organization, which are typically the cheapest and considered the most relevant. The Advantages of Internal Sources are: § Easy Availability § Continuous Accessibility § Pertinence 7 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
External Sources Information that can be obtained outside of the organization, which are typically more expensive to obtain. The advantages of External Sources are: § Readily Available § Larger network of sources 8 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Syndicated Data Sources 9 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Syndicated Data Sources Data that is collected and compiled by commercial research firms using standardized procedures; it provides rich information of a wide variety of products regarding industry, products and firms. Syndicated Data: • Consumer Panels • Store Audits • Scanner 10 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Consumer Panels Samples of Specific Households that have agreed to share specific information over a long period of time. The information shared typically covers: § Product Purchase Information § Buying Habits § Media Habits 11 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Store Audits Audit data collected by research firms wherein auditors from a research firm visit a sample of stores at fixed intervals for the purpose of counting stocks and recording deliveries to estimate retail sales. The Audit allows the firm to: § Gather estimates of total sales, inventories, etc. § Report to client at specific time period § Collect information such as shelf prices, display space, in-store promotion activities. 12 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Scanner Data on retail purchases covering information on the product, the price, and any other in -store promotion data. Scanner Study the behavior of the consumer Data in various market conditions allows a firm to: Forecast the sales of a new product Conduct experiments that advise on pricing options 13 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Electronic Point of Sale Scanning 14 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Electronic Point of Sale Scanning Scanner Data • Refers to the changing trend in retail auditing which consists of bar-coding, computerized information, radio frequency identification (rfi) Allows researcher to: • Study the behavior of the consumer in various market conditions • Forecast the sales of a new product • Conduct experiments that advise on pricing options 15 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Uses of Secondary Data 16 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Uses of Secondary Data Syndicated Data is most suited for the following applications: § Estimation of Demand § Scanning the competitive Environment § Segmentation & Targeting § Developing a Business Intelligence System 17 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Estimation of Demand Takes place when companies assess the potential of each customer segment they cater to, upon which resources are allocated to each customer segment. Direct Data Method Corollary Data Method Sales can be broken down by the organization’s sales and operating territories allowing a comparison of company sales and industry sales in each territory. 18 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research The absence of industry sales data is compensated by using a variable that is available for each sales territory or region and correlated highly with the sales of the product.
Segmentation & Targeting Permits companies to better deal with competition in the marketplace by differentiating their offerings, which are typically based on factors such as price, promotion and service. Segmentin g the market can be done on the basis of: Geography (e. g. region, city, climate) Demography (e. g. age, gender, income) Psychography (e. g. needs, attitude, perception) Sociocultural (e. g. religion, race, culture) Usage situation (e. g. personal, fun, ) Time of usage (e. g. work, leisure, day and night) Benefits (e. g. convenience, social acceptance) 19 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Developing a Business Intelligence System Compromised of primary and secondary data, the business intelligence (BI) system contains data on the environment and the competitors, which forms an integral part of the marketing decision support system. The market dynamics which impact BI spending and growth: § Tough macroeconomic situation and confusion regarding the definition of analytics § Involvement of big data and BI § BI spending moving outside of IT § Data discovery becoming a mainstream architecture § Software as a Service (Saa. S) 20 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Advantages & Disadvantages of Secondary data 21 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Advantages of Secondary Data § Accessibility and Availability § Quick when using online retrieving technique § Save cost and time § Can warn researcher that project is not feasible or financially viable even before time and money is spent § At times, may be only data available for conducting research 22 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Disadvantages of Secondary Data § Data is not collected to answer researchers specific question § Developing countries do not have agencies that collect data on a regular basis § May not have accuracy that is needed for confident decision making § Data may be outdated § Inconsistent methods in which data is collected § Difficult to validate data from certain countries 23 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Problems in Collecting Secondary Data 24 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Problems in Collecting Secondary Data The problems in collecting Secondary Data are: • General Dearth of statistical summary data, especially in less developed countries • Issue of comparability of data • Differences in way statistical data is processed Example • A television is considered an Entertainment Expense in Germany, but a Furniture Expense in the United States 25 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Evaluating the Value of Research 26 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Evaluating the Value of Research When conducting research, it is necessary to have an estimate of the value for obtaining answers to the specific questions that are being asked. The value will be based on: § Importance of decision that is to be made based on information obtained § Uncertainty surrounding situation § Influence of information on decision 27 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Guidelines for Effective Secondary Online Data Research 28 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
Guidelines of Effective Secondary Online Data Research When collecting data, it is important to be aware of the challenge that exists when it comes to collecting the right kind of information due to the variety and variability of the available content. It is important to use trusted sources such as the internet The emergence of the internet has served as one of the most effective ways of obtaining secondary data. The various resources available to web users include: § Trade publication and trade-associated webinars § Whitepapers, articles, surveys § Federal and State Census Reports § Social Media Outlets 29 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
End of Chapter 5 30 © Dr V. Kumar (www. drvkumar. com/gmr) Global Marketing Research
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