Title: Secondary and Exploratory Research
1Secondary and Exploratory Research
2- SALES/PATRONAGE RESULTS ( OUTCOMES )
- MARKETING ACTIVITY ( INPUTS )
- COST INFORMATION
- DISTRIBUTOR REPORTS AND FEEDBACK
- CUSTOMER FEEDBACK
Sources of Secondary Data
3Uses of Secondary Data
- Can solve the problem on hand all by its own
- Can lead to new ideas and other sources
- Helps to define the problem more clearly
- Can help in designing the primary data
collections process - Helps in defining the population / sample
- Can serve as a reference base
4Benefits and Limitations of Secondary Data
Benefits
Limitations
- Low cost
- Less effort
- Less time
- At times, more accurate
- At times, only way to obtain data
- Collected for some other purpose
- No control over data collection
- May not be accurate
- May not be in correct form
- May be outdated
- May not meet data requirements
- Assumptions have to be made
5Computer-Retrievable Methods
Limitations
Advantages
- Scope of information available
- Speed of information access and retrieval
- Commercially available search procedures provide
considerable flexibility and efficiency
- Rely solely on the accuracy of the abstract
author - Depend on the journal and article selection
policy of the database producer - Might miss important information, or retrieve a
lot of irrelevant data if searching by keyword
6Appraising Secondary Sources
- Factors to Be Considered
- Who has collected the data (did they have
adequate resources)? - Why was the data collected (how the interests of
agency match with ours)? - How the data was collected (to determine the
quality of data on-hand)? - What data was collected (geographic and
demographic limitations)? - When the data was collected (how old/obsolete is
the data)?
7Applications of Secondary Data
Demand Estimation
Monitoring the Environment
- Census data
- Standard Industrial Classification (SIC)
- Trade association data
- Experts and authorities
- Press releases
- Legislation and laws
- Industry news
- Business and practitioner literature, such as
magazines
8Applications of Secondary Data (Contd.)
Segmentation and Targeting
Developing a Business Intelligence System
- Competitors annual reports
- Press releases
- Canadian Facts
- Gallup (Natl Omnibus)
- Market Facts (Omnibus)
- DMI (Duns market identifiers
- SIC
- Nielsen
9Growth of Standardized Sources
- Factors
- Multitude of information users having common
information needs - When cost of satisfying individual user's need is
prohibitive - The increasing use of scanner systems at the
check out points
10Nielsen Retail Index
- Biggest research company in the world
- Their auditing services cover four groups
- Grocery products
- Drugs
- Mass merchandisers
- Alcoholic beverages
11Consumer Purchase Panels
- To Cover the Gap Between Warehouse Withdrawal
Audits and Actual Purchases Following Methods Can
Be Used - Home Audit Approach
- Panel member agrees to permit an auditor to check
the household stocks of certain product
categories at regular intervals - Mail Diary Method
- Panel member records the details of each purchase
and returns the diary by mail at regular intervals
12Advantages and Limitations of Consumer Panels
- Limitations
- Possibility of selection bias
- Mortality effect
- Testing effect
- Can Provide Information On
- Aggregate Sales Activity
- Brand shares
- Shifts in buyer characteristics
- Shifts in retail outlets
13Applications of Standardized Sources of Data
- Measuring product sales and market share
- Measuring advertisement exposure and
effectiveness - Measuring promotion effectiveness
- Estimation And evaluation of models
14Information Collection Qualitative and
Observational Methods
- Qualitative Methods
- Recommended to capture the basic feel of a
problem prior to conducting more analytical study - Observational Methods
- These methods are limited to providing
information on current behavior
15Qualitative Research Methods
- Exploratory
- Conducted primarily to explicitly define the
problem and formulate hypotheses - Orientation
- To learn more about target consumer (e.G.
Culture, language) - Clinical
- To gain insights into topics that are difficult
in a structured research
16Focus Group Discussions
- Exploratory Focus Groups
- Used in the exploratory phase of the market
research process - Used for generating the hypotheses
- Clinical Focus Groups
- Based on the premise that an individual's true
feelings and motivations are subconscious in
nature - Experiencing Focus Groups
- Allows the researcher to experience the emotional
framework in which the product is being used
17Managers checklist When to use Exploratory
Research
- when existing background information is limited
- to more clearly define problem or opportunity
- to clearly establish research objectives
- to determine if conclusive research is needed
- to help design a questionnaire for conclusive
research - to investigate in more depth the findings of a
conclusive study
18Managers checklist When to use Focus Groups
- In the exploratory phase of market research
- when manager desires first-hand observation of
the research process - when quick results are needed
- to generate new ideas or concepts
- when group interaction is likely to generate more
useful information than individual interviews
19Projective Techniques
- Respondent is asked to comment upon rather
unstructured or ambiguous object, activity - The Various Categories of Projective Techniques
Are - Word Association
- Completion Test
- Picture Interpretation
- Third Person Techniques
- Role Playing
20(No Transcript)
21Limitations of Qualitative Methods
- Potential susceptibility of the results to get
misused or misinterpreted - Results not necessarily representative of the
whole population - Moderator or interviewer's role is extremely
critical can lead to ambiguous or at times
misleading results
22Observational Methods
- Casual Observation
- Systematic Observation
- Direct Observation
- Contrived Observation
- Content Analysis
- Physical Trace Measures
- Humanistic Inquiry
- Behavior Recording Devices
23Limitations of Observational Methods
- Cannot be used to observe motives, attitudes or
intentions - More costly and time consuming
24Recent Applications of Qualitative and
Observational Methods
- Get inside minds of shoppers by providing tape
recorders and having them record their thoughts
while shopping - Virtual Customers system for evaluating service
quality - On-site observation
25Qualitative vs. quantitative
- qualitative quantitative
- question type open closed
- instrument structure little high
- sample size small large
- analysis subjective objective
- interviewer training high low
- ability to replicate low high
- usual research type exploratory conclusive
- length (admin.time) longer shorter
- cost low large
26Summary
- Secondary data is fast and inexpensive, but often
lacks the detail needed - is the data right for your purpose?
(availability, relevance, accuracy, sufficiency) - qualitative research good for generating
hypotheses - is flexible, may be biased - focus groups provide insights can be ambiguous
- observation often more systematic, but caanot
reveal motives - secondary and exploratory important initial tasks
27Barkley Foods
28Barkley Foods secondary data sources
- for market analysis
- - size, growth rate
- - industry trends
- - emerging technologies
- - distribution trends
- - core competencies
- for environmental analysis
- - SWOT
- - what future scenarios
-
- for customer analysis
- - major segments
- - motivations, unmet
- needs?
- for competitor analysis
- - existing and potential
- - sales, share, profits
- - strategies and differentiation
29Barkley Foods focus on data
- Market facts (US) 2000
- - 85 billion home meal replacement
- -67.7 billion frozen foods (37 in
supermarkets) - - dinners account for 21 of frozen food sales
in - supermarkets
- - upward trends 4 growth in 1999,
- subcategories much higher
30Barkley Foods focus on data
- environment
- - frozen food appreciated as home meal
- replacement (R)
- - frozen entrees among top 10 in-home suppers
- - women in workforce spurred trend
-
31Barkley Foods focus on data
- customers
- - boomers and Xers key segments for breakfast,
- juice, veggies, pizza
- - customers very promotion-receptive
- - 50 of purchases heavily influenced by
teenagers - - despite growth of ethnic foods, 75 enjoy
plain - domestic tastes
32Barkley Foods focus on data
- competitors
- - healthfulness and taste provide marketing
advantage - - 20 more supermarket space over past 10 years
- - very competitive, 586 companies account for
over - 90 of frozen food production in US
- - 1,527 new products in 1998
33Barkley Foods strategic info fast
- gt trade magazines (Quick Frozen Foods, Chain
Store Age, - Frozen Food Age, Supermarket business,
Advertising Age) - provide expert commentary
- syndicated statistics (I.e.Nielsen)
- surveys
- gt government reports, statistics (population
growth, - segments, income clusters)
- provide demographic trends (working women,
mothers) - personal income spending patterns
- industry statistics
34Barkley Foods strategic info fast
- gt exploratory in-depth interviews with major
- supermarket buyers
- provide product/sales trends in high
quality/price - segments
- provides feel for competitive climate