Currency When the Data Were Collected Marketing Research Help

Secondary data may not be current, and the time lag between data collection and publication may be long, RS is the case with much census data. Moreover. the data may net be updated frequently enough for the purpose of the problem at hand. Marketing research requires current data; therefore, the value of secondary data is diminished as they become dated. For instance, while the 2000 Census of Population data are comprehensive. they may not be applicable to a metropolitan area whose population has changed rapidly since the census. Fortunately, several marketing research firms update census data periodically and make the current information available on a syndicated basis

Objective The Purpose for Which the Data Were Collected

Data are invariably collected with some objective in mind, and a fundamental question to ask is why the data were collected in the first place. The objective for collecting data will ultimately determine the purpose for which that information is relevant and useful. Data collected with a specific objective in mid may not be appropriate in another situation. As explained in more detail later in the chapter, scanner volume tracking data are collected with the objective of examining aggregate movement of brands. including shifts in market shares. Such data on sales of orange juice, for example, would be of limited value in a study aimed at understanding how households select specific brands

Nature The Content of the Data

The nature, or content, of the data should be examined with special attention to the definition of key variables, the units of measurement, categories used. and the relationships examined. If the key variables have not been defined or are defined in a manner inconsistent with the researcher’s definition, then the usefulness of the data is limited. Consider. for example, secondary data on consumer preferences for TV programs. To use this information, it is important to know how preference for programs was defined. Was it defined in terms of the program watched most often, the one considered. most needed, most enjoyable, most informative, or the program of greatest service to the community?

Dependability How Dependable Are the Data?

An overall indication of the dependability of data may be obtained by examining the expertise, credibility, reputation, and trustworthiness of the source. This information can be obtained by checking with others who have used the information provided by the source. Data published to promote sales. to advance specific interests. or to carry on propaganda should be viewed with suspicion. The same may be said of data published anonymously or in a form that attempts to hide the details of the data collection methodology and process. It is also pertinent to examine whether the secondary data came from an original source, one that generated the data. or an acquired source. one that procured the data from an original source. For example. the Census of Population is an original source. whereas the Statistical Abstracts of the United States is an acquired source. As a general rule. secondary data should be secured from an original. rather than an acquired source. There are at least two reasons for this rule. First. an original source is the one that specifics the details of the data collection methodology. Second. an original source is likely to be more accurate and complete than a secondary source.

Flying High on Secondary Data

Money magazine published the results of a study conducted to uncover the airline characteristics consumers consider most important. In order of importance. these characteristics are safety. price. baggage handling. on-time performance. customer service. ease of reservations and ticketing. comfort. frequent flyer programs. and food. Money magazine then ranked the 10 largest U.S. airlines according to these characteristics.

American would also need to look at the nature and dependability of the data. For instance, it would need to look at how the nine choice criteria are defined. For example. price is measured in terms of fare per mile. This may not be useful to American if it did not want to quantify price in that manner. In regard to dependability, American would need to research the reputation of Money magazine and of ICR, the company Money hired to administer the survey. American also needs to consider the fact that Money used some secondary research in its study. For instance, it used reports from the National Transportation Safety Board data on airline accidents and incident reports from the Federal Aviation Administration to rank the safety performance of the 10 airlines. It is always better to get information from the original source. Thus. American might want to acquire these reports and do its own safety ranking. This would be more reliable than getting this information from the Money magazine report

The Money magazine article might be useful as a starting place for the marketing research project by American Airlines. For instance, it might be useful in formulating the problem definition. However, because of the article’s limitations in regard to currency, nature. and dependability, this source should be supplemented by other sources of secondary research, as well as primary research

A Classification of Secondary Data

A Classification of Secondary Data

Classification of Secondary Data’

Figure 4.1 presents a classification of secondary data, Secondary data may be classified as either internal or external. Internal data are those generated within the organization for which the research is being conducted. This information may be available in a ready-to use-format, such as information routinely supplied by the management decision support system. On the other hand, ‘these data may exist within the organization but may require considerable processing before they are useful to the researcher. For example, a variety of information can be found on sales invoices. Yet this information may not be easily accessible; further processing may be required to extract it. External data are those generated by sources outside the organization. These data may exist in the fonn of published material, computerized databases, or information made available by syndicated services. Before collecting external secondary data, it is useful to analyze internal secondary data

internal Secondary Data

Internal sources should be the starting point in the search for secondary data. Since most organizations have a wealth of in-house information, some data may be readily available and may provide useful insights. For example, sales and cost data are compiled in the regular accounting process. When internal data on sales showed Reebok that Internet sales were a mere 0.7 percent of their total sales but were rousing bad feelings ‘among retailers, the company discontinued online selling. It is also possible to process routinely collected sales data to generate a variety of useful information, as illustrated by the department store example.

Internal Secondary Data

Extensive analysis was conducted on internal secondary data in the department store patronage project. is provided several rich insights. For example, sales were analyzed to obtain:

• Sales by product line
• Sales by major department (e.g., menswear, housewares)
• Sales by specific stores
• Sales by geographical region
• Sales by cash versus credit purchases
• Sales in specific time periods
• Sales by size of purchase
• Sales trends in many of these classifications

Secondary internal data have two significant advantages. They are easily available and inexpensive. In fact, internal secondary sources are generally the least costly of any source of marketing research information, yet these data often are not fully exploited. However, this trend is changing

Database Marketing

Database marketing involves the use of computers to capture and track customer profiles and purchase detail. This secondary information serves as the foundation for marketing programs or as an internal source of information related to customer behavior. For many companies, the first step in creating a database is to transfer raw sales information, such as that found on sales call reports or on invoices, to a microcomputer. This consumer purchase information is then enhanced by overlaying it with demographic and psycho graphic information for the same customers, available from syndicated firms such as Donnell Marketing and Experience This information can then be analyzed in terms of a customer’s activity over the life of the business relationship. A profile of heavy versus low users, signs of change in the usage relationships, or significant “customer life cycle” events such as anniversaries can be identified and acted upon. These databases provide the essential tool needed to nurture, expand, and protect the customer relationship,”

Type of Individual/Household Level Data Available from Syndicated Firms

I. Demographic Data

• Identification (name, address, telephone)
• Sex
• Marital status
• Names of family members
• Age (including ages of family members)
• Income
• Occupation
• Number of children present
• Home ownership
• Length of residence

ii. Psycho graphic Lifestyle Data

• Interest in golf
• Interest in snow skiing
• Interest in book reading
• Interest in running
• Interest in bicycling
• Interest in pets
• Interest in fishing
• Interest in electronics
• Interest in cable television

CRM (customer relationship management) is a unique type of database-driven marketing. As part of Its CRM system, Chrysler implemented what they call Personal Information Centers. These PICs, as they are called, offer car owners an individualized Web site that creates direct links with the marketing research team. These PICs collect data on all aspects of buying a car, giving the company the ability to engage in customized marketing. If a prospect, on his or her completed online survey, indicated handling of minivans to be a concern, separate data could be included on a brochure sent only to that prospect. These data would show how the Chrysler minivan stood up against the competition in the minivan market. Chrysler believes that the customer relationship begins when a prospect first contacts the company and doesn’t stop when a buyer purchases a vehicle. With this in mind, the company uses its CRM system to constantly track buyers’ and prospects’ opinions and desires. Its CRM has enabled the company to maintain its leadership in the automobile market. In 2007, private equity concern Cerberus Capital Management bought Chrysler for about 7.4 billion-cor . -out one-fifth of the $37 billion Daimler paid in 1998.9

Caterpillar: The Pillar of Database Marketing

Besides their famous earth moving equipment. Caterpillar builds $2 billion per year of large truck engines. the kind that are found everywhere in the big 18·wheelers on the road. These trucks are always custom built by the truck manufacturers. who are really assemblers. such as Peterbilt. In the beginning. Caterpillar had no database. and their executives had a lot of questions: “What truck fleets are we not calling on? What fleets should test our two new engines? How can we get a marketing strategy that can be measured? How do we adjust 10 the coming downturn in sale

Weber and Weyfonh developed a set of different messages that could be sent to each customer and prospect. Messages thai stressed retention were different from messages that were designed for conquest. During the first year with the new database. they were able to sign up 500 conquest fleets. They sold an average of 5010100 engines per fleet at about $15.000 per engine. The total increased sales that could be attributed to the new database system were approximately $500 million. They successfully launched the two new engines that had been part of the original goai. Caterpillar market share went up by 5 percent and continued. to grow through .2009.10

Most large organizations have intranets, which greatly facilitate the search for and access to internal secondary data. The Procter & Gamble Company. for example. has developed powerful intranet applications that enable its managers worldwide to search for past and current research studies and a wide variety of marketing-related information on. the basis of keywords. Once located, the information can be accessed online. Sensitive information can be secured electronically with user names and passwords.

Posted on November 30, 2015 in Exploratory Research Design Secondary Data

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