Marketing Research

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Marketing Research

• Aaker, Kumar, Day
• Ninth Edition
• Instructors Presentation Slides

http//www.drvkumar.com/mr9/
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Chapter Five
Secondary Sources of Marketing Data
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Data Sources

• Secondary Data
• Primary Data

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Sources of Secondary Data
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Uses of Secondary Data

• May provide enough information to resolve the
  problem being investigated
• Can be a source of new ideas that can be explored
  later
• Acts as a prerequisite to collecting primary data
  and can help in designing the primary data
  collection process
• Helps to define the problem and formulate
  hypotheses about its solution
• Helps in defining the population / sample /
  parameters of primary research
• Can serve as a reference base to compare validity
  of primary data

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Benefits and Limitations of Secondary Data
Limitations
Benefits

• Low cost
• Less effort
• Less time
• Sometimes more accurate
• Sometimes 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• May be outdated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

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Internal Sources of Secondary Data

• Internal Records
• Accounting Data
• Sales Reports
• Inventory Management
• Customer Database

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External Sources of Secondary Data

• Published data sources (e.g., Census,
  publications of various trade associations)
• Trade directories
• Computer retrievable databases ("online"
  databases)

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Classification of Computer-retrievable Databases
Computer Retrievable Database
Based on the Method of Storage and Retrieval of
Information
Based on the Type of Information
CD-ROM Databases
On-line Databases
Floppy Disc Databases
Reference
Source
Indirect through Networks
Direct from Producer
Direct from Vendors
Internet
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Computer-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

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NAICS Code

• North American Industrial Classification System
• Developed to provide a consistent framework for
  the collection, analysis and dissemination of
  industrial statistics
• Identified by a six-digit code
• Sixth digit identifies subdivisions of NAICS
  industries that accommodate user needs in
  individual countries
• Has 20 broad sectors

NAICS level NAICS code Description
Sector 51 Information Subsector 513 Bro
adcasting and telecommunications Industry
group 5133 Telecommunications Industry 51332
Wireless telecommunications carriers U.S.
Industry 513321 Paging
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Appraising Secondary Sources

• Factors to Be Considered
• Who has collected the data (did they have
  adequate resources)?
• Why was the data collected (how interests of the
  agency matches with ours)?
• How was the data collected (what is the quality
  of data on-hand)?
• What data was collected (geographic and
  demographic limitations)?
• When was the data collected (how old/obsolete is
  the data)?
• Is there consistency?

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Applications of Secondary Data

• Demand Estimation
• Monitoring the Environment
• Segmentation and Targeting
• Developing a Business Intelligence System

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Applications of Secondary Data (Contd.)
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

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Applications of Secondary Data (Contd.)
Developing a Business Intelligence System
Segmentation and Targeting

• PRIZM
• CLUSTER PLUS
• ACORN
• DMI
• NAICS
• TIGER

• Competitors annual reports
• Press releases

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Sources of Secondary Data for International
Marketing Research

• Economic Data
• United Nations
• World Bank
• Business International Publications
• Euromonitor
• World Casts

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Sources of Secondary Data for International
Marketing Research (Contd.)

• Industry Data
• United Nations yearbooks
• U.S. Department of commerce
• The Economist (publication)
• Worldcasts
• Background Data
• Dun and Bradstreet publications (e.g., Exporter's
  guide)
• Price Waterhouse publications

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Problems Associated with Secondary Data in
International Research

• Data Accuracy
• Comparability of Data

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Applications of Secondary Data in International
Research

• Selecting countries or markets that merit
  in-depth
• investigation
• Making an initial estimate of demand potential
  in one or more countries using
• Lead-lag Analysis
• Surrogate Indicators
• Cross-sectional Data / Barometric Procedures
• Econometric Forecasting Model
• Monitoring environmental changes