Secondary Data & Packaged Information PDF

Secondary Data & Packaged Information What is “Big Data”? Big data can be defined simply as large amounts of data from multiple sources. The term has been popularized in recent years in response to the numerous types and huge amounts of data to which companies now have access in real time. Today, we...

Secondary Data & Packaged Information What is “Big Data”? Big data can be defined simply as large amounts of data from multiple sources. The term has been popularized in recent years in response to the numerous types and huge amounts of data to which companies now have access in real time. Today, we generate 2.5 quintillion bytes of data daily. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Marketing Analytics Marketing analytics is the management and analysis of data to improve marketing decisions. Sources of data can originate from many places, including companies, sensors, retailers, trade organizations, governments, publishers, the Internet and social media. These data take many forms, both qualitative and quantitative, including text, photos, videos, business transactions, research data, and many other types of data. Decisions must be made about what data to collect and how to analyze the data to find trends, patterns, and relationships among data from multiple sources. Effective use of multiple sources of data requires having the resources and talent available to retrieve, store, integrate, analyze, report, and protect the data. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Primary Versus Secondary Data Primary data: information that is developed or gathered by the researcher specifically for the research project at hand. Secondary data: information that has previously been gathered by someone other than the researcher and/or for some other purpose than the research project at hand. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Uses of Secondary Data Secondary data has many uses in marketing research and sometimes the entire research project may depend on the use of secondary data. Applications include determining lifestyle and purchasing habits, economic-trend forecasting, corporate intelligence, international data, public opinion choosing international markets to enter, understanding consumer concerns during a crisis situation, etc Secondary data might provide marketers with the information about demographics that they need to help forecast the size of the market in a newly proposed market territory. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Figure Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Classification of Secondary Data Internal secondary data are data that have been collected within the firm, such as sales records, purchase requisitions, and invoices. Internal secondary data is used for database marketing. A database refers to a collection of data and information describing items of interest. Database marketing is the process of building, maintaining customer (internal) databases and other (internal) databases for the purpose of contacting, transacting, and building relationships. Example: data mining. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Internal Databases Internal databases consist of information gathered by a company, typically during the normal course of business transactions. Companies use their internal databases for purposes of direct marketing and to strengthen relationships with customers, which is referred to as customer relationship management (CRM). Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Internal Databases Data mining is the name for software that helps managers make sense out of seemingly senseless masses of information contained in databases. Micromarketing refers to using a differentiated marketing mix for specific customer segments, sometimes fine-tuned for the individual shopper. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Ways Companies Use Databases To identify prospects - Ex: sorting through replies to company ads to identify customers who can be targeted with more information To decide which customers should receive a particular offer - Ex: sending a cross-selling suggestion two weeks after a sale To deepen customer loyalty by remembering customer preferences and sending appropriately customized materials reflecting those preferences To reactivate customer purchases - Ex: automatically sending out a birthday card To avoid serious customer mistakes - charging a fee to one of the firm’s largest customers Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved External Secondary Data External databases are databases supplied by organizations outside the firm: – Published sources – Official data – Data aggregators Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved External Secondary Data Published sources: sources of information that are prepared for public distribution by trade associations, professional organizations, companies, and other entities and can be found in libraries and online. - Business Journals - Magazines - Newspapers - Academic journals Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Official Statistics Official statistics are information published by public organizations, including government institutions and international organizations Official statistics are both qualitative and quantitative and include information related to demographics, economic development, education, consumption patterns, health, education, the environment, and many other topics. Many international organizations offer statistics for free online, including the World Health Organization (WHO), the Organization for Economic Co-operation and Development (OECD), the World Bank, and the International Monetary Fund. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Official Statistics Since the passage of the Open Data Policy in 2013, the United States, by federal law, makes all data collected by the government “open by default,” except for personal information or data related to national security. The website www.data.gov includes almost 200,000 datasets from 170 organizations. Free public data have been organized or merged to produce profitable companies (e.g., Garmin, Zillow, and Prevedere) and apps (e.g., Citymapper). Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved External Secondary Data Data aggregators are services or vendors that organize and package information on focused topics. Examples of these services are IBISWorld, Factiva, Ebsco, Statista, and ProQuest Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved External Secondary Data Syndicated services data: provided by firms that collect data in a standard format and make them available to subscribing firms – highly specialized and not available in libraries. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved External Secondary Data External databases: databases supplied by organizations outside the firm such as online information databases. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Advantages of Secondary Data Are obtained quickly Are inexpensive Are readily available Enhance existing primary data by providing a current look at issues, trends, yardsticks of performance, and so on that may affect the type of primary data that should be collected May achieve research objective Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Problems Associated with Secondary Data Reporting units may be incompatible - Secondary data are provided in reporting units such as, in the case of area units, county, city, metro area, state, region, ZIP code, and other statistical areas. - A researcher’s use of secondary data often depends on whether the reporting unit matches the researcher’s need. Measurement units do not match - Ex: Reporting incomes in different countries Differing definitions to classify data - Secondary data are often reported by breaking a variable into different classes and reporting the frequency of occurrence in each class. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Problems Associated with Secondary Data Timeliness -- may be outdated - Sometimes a marketing researcher will find information reported with the desired unit of measurement and the proper classifications, but the data may be outdated and no longer reliable. - Even for secondary data published at regular intervals, the time that has passed since the last publication can be a problem when applying the data to a current problem. - Ex: U.S. Census May not be credible Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Evaluating Secondary Data What was the purpose of the study? Who collected the information? What information was collected? How was the information attained? How consistent is the information with other information? Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved What is Packaged Information? Packaged information is a type of secondary data in which the data collected and/or the process of collecting the data are prepackaged for all users. There are two broad classes of packaged information: – Syndicated data – Packaged services Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Syndicated Data Syndicated data are a form of external, secondary data that are supplied from a common database to subscribers for a service fee Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Packaged Services Packaged services refers to a prepackaged marketing research process that is used to generate information for a particular user Unlike syndicated data, the data from a packaged service will differ for each client. Packaged services rarely provide clients with the same data. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Advantages of Syndicated Data Shared costs Quality of the data collected is typically very high Speed Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Disadvantages of Syndicated Data Buyers have little control over what information is collected Firms often must commit to long-term contracts when buying syndicated data Competitors have access to the same information. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Advantages of Packaged Services Advantage of the experience of the research firm offering the service Reduced cost of the research Speed of the research service Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Disadvantages of Packaged Services Inability to customize aspects of a project when using a packaged service. The company providing the packaged service may not be knowledgeable about the client’s industry. Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Applications of Packaged Information Measuring consumer attitudes and opinions Identifying segments, often using geodemographics (classification of geographic areas in terms of the socioeconomic characteristics of their inhabitants) Monitoring media usage and promotion effectiveness Tracking sales Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Digital Tracking Data Point of sale (POS) data are automatically collected when consumers buy products. A cookie is a piece of data that is sent from a website to a user’s computer by a web browser and is used to store the user’s browsing A device ID is a unique identifier that can be traced back to a single mobile device, such as a smartphone or a tablet. Geolocation data is information that identifies the physical location of an electronic device Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Social Media Data Social media data, also termed user-generated content (UGC), is any information that is created by users of online systems and intended to be shared with others Examples: – Reviews – Tips – New uses – Competitors Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Monitoring Social Media Social media monitoring, or social media listening, involves actively gathering, organizing, and analyzing social media data to gain consumer insights Sentiment is the ratio of positive to negative comments posted about products and brands on the web Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Advantages of Social Media Relatively inexpensive Unprompted and unfiltered voice of the consumer Good means to trace trends and themes Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved Disadvantages of Social Media Audience may not be representative Consumers not identifiable Review websites subject to manipulation Copyright © 2020, 2017, 2014 Pearson Education, Inc. All Rights Reserved