chapter Q&A
2. Secondary Data
CONTENT
Need for research
Secondary vs. Primary Data
Applications of Standardized Information
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Need for Research
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When is marketing research not needed?
Information already available
Costs > benefits
Lack of time & resources
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Secondary Versus Primary Data
Secondary data
Existing data
Developed or gathered by someone other than the researcher and/or for some purpose other than the research project at hand
Databases
Primary data
New data
Developed or gathered by the researcher specifically for the research project at hand
Focus group/survey
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Uses of Secondary Data
Sometimes the entire research project may depend on the use of secondary data.
Explore changes in trend and life style or opportunities
Market size
Growth rate
etc.
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An Example of Secondary Data
Source: A Summary of the 2010 Census, City of Hayward, CA
Assume your target market is 35 to 54-year-olds, do you want to run your business in Hayward?
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Classification of Secondary Data
Internal secondary data
Data that have been collected within the firm, such as sales records, customer information.
Research on existing customers
New offers
Loyalty/satisfaction
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Classification of Secondary Data
External secondary data
Data supplied by firms/agencies outside a company
Research on new customers/market
Published
Overview of industry and/or demographics
Available in libraries
http :// sju.v1.libguides.com/marketing
Government agencies
US Census bureau
Syndicated services data
More specialized, not available in libraries
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Figure 2.1 Sources of secondary data
Source: Adapted from Aaker, Kumar and Day (1998)
Internet
(electronic)
Printed
Private market research firms
(e.g. Euromonitor))
Governments
Industry associations
Trade magazines / journals
Article databases (e.g. Proquest)
Websites of competitors
Firms’ annual reports
Newspaper
Books
Standardized
sources of marketing
data
Consumer purchase panels
Nielsen’s Television Index
Web-traffic (monitoring
traffic on Web-sites)
Primary
data sources
Data sources
Secondary
data sources
External
data sources
Published data
Data collection with a specific
purpose in mind -
typical personal interviews
Internal
data sources
Sales reports
Marketing activities
Cost information
Sales force feedback
Sales reps’ reports
Advantages of Secondary Data
Obtained quickly
Inexpensive relative to primary data
Usually available
Only option
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Disadvantages of Secondary Data
Incompatible reporting units
Measurement units do not match
Class definitions are not usable
Data are outdated
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Application of Standardized Information
Measuring Consumer Attitudes and Opinion Polls
http://www.gallup.com/poll/101905/gallup-poll.aspx
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Application of Standardized Information (Cont’)
Defining Market Segments
http:// www.strategicbusinessinsights.com/vals/ustypes.shtml
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Application of Standardized Information (Cont’)
Conducting Market Tracking
Nielsen Scantrack
http://www.nielsen.com/us/en/solutions/measurement/retail-measurement.html
Nielsen/IRI Homescan
https://www.homescan.com/homescan/US/EN/Login.htm
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Application of Standardized Information (Cont’)
Monitoring Media Usage and Promotional Effectiveness
Nielsen TV ratings
http://www.nielsen.com/us/en/solutions/measurement/television.html
Nielsen website ratings
http://www.nielsen.com/us/en/solutions/measurement/online.html
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Market Potential Analysis
BDI – Brand Development Index
Indicator of brand sales potential
How well a brand is doing in a specific market relative to the population size of that market
The relative strength and weakness for the brand in each market
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Example
Percentage of total US sales for Bud Light in Seattle: 1.40
Percentage of total US population in Seattle: 1.20
Bud Light’s BDI in Seattle
(1.40/1.20) x 100 = 117
Bud Light sales in Seattle are 17% above what would be expected given the population in the area
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Percentage of brand to total (U.S.) sales in market
Percentage of total (U.S.) population in market
BDI =
X 100
Brand Development Index
Market Potential Analysis (Cont)
CDI – Category Development Index
Indicator of category sales potential
How well a product category is doing in a specific market relative to the population size of that market
The relative strength and weakness for the product category in each market
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Example
Percentage of total US sales for all light beer in Seattle: 1.30
Percentage of total US population in Seattle: 1.20
Light beer’s CDI in Seattle
(1.30/1.20) x 100 = 108
Light beer sales in Seattle are 8% above what would be expected given the population in the area
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Percentage of a product category to total (U.S.) sales in market
Percentage of total (U.S.) population in market
CDI =
X 100
Category Development Index
High market share
Good market potential
Low CDI
High CDI
High BDI
Low market share Good market potential
Low BDI
High market share
Monitor for sales decline
Low market share
Poor market potential
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Market Potential Analysis (Cont)
Exercise: What are the light beer CDIs of Jacksonville and Tampa? Assuming you are the marketing manager of a foreign beer brand and have to choose one from the two, which market will you choose and why?
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| Category Sales (%) | Population (%) | CDI | |
| Jacksonville | 0.12 | 0.12 | |
| Tampa | 0.15 | 0.10 |
Market Potential Analysis (Cont)
Other factors
Local affiliation and distribution
Local regulations
Selling imported light beer in St. Louis, Missouri
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End of chapter questions
2. Why should a company use all potential sources of secondary data before initiating primary data research?
4. What pitfalls might a researcher encounter in using secondary data?
7. What are the major sources of competitive intelligence (CI)?
9. Collect data on beer consumption in your country for the latest available year. Calculate the per capita consumption for your country and compare it with other countries where data is available. What accounts for possible differences?
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WRAP-UP
Basics of marketing research process
Secondary data and applications
Market potential analysis with CDI and other factors
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Next Week
10 in-store observations
Documents in “Chapter 3” on Course Content
03_Sample Observation Form
03_Observation Form
Location: large grocery stores
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