Chapter Six:

Secondary Data Research

1. Discuss the advantages and disadvantages of using secondary data

Secondary data: data that has been previously collected for some purpose other
than the one at hand. They are facts and information collected and recoded by
someone else prior to and for purposes other than the current project.

Advantages Disadvantages
Readily available Individuals who originally gathered the
data did so for an entirely different
reason.
Faster Secondary data may not fit apply to the
current population on interest, time
period, correct units of measurement
and offer relevant facts to the research
question.
Easily accessible as most secondary Secondary data may not be relevant,
data is stored digitally or electronically useful and reliable
Less expensive Secondary data may be out-dated.

Units of measurement:

May cause problems if they do not conform exactly to a researchers needs.

Sometimes, data using different scales is amendable in rescaling. Data
transformation – the process of changing the original form of the data to a format
suitable to achieve the research objective.

Reliability and validity:

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The usefulness of secondary data results depends greatly on data quality. Having
more data, make it more difficult to sort between high quality and low quality data.
The user has no control over the data’s reliability and validity, which represent
accuracy and trustworthiness. Although timely and pertinent secondary data may fit
the researchers requirement, the data may still be inaccurate. Cross checks – the
comparison of data from one source with data from another source to determine the
similarity of independent projects. When data is not consistent, researchers should
attempt to identify reasons for the differences or to determine which data are most
likely to be correct.

2. Understand common objectives addressed by secondary data

2.1 Fact Finding: The simplest objective for secondary data is fact-finding. Simple
facts interest researchers investigating certain studies.

Identification of consumer behaviour for a product category

Another objective is to uncover all available information about consumption patterns

for a specific product category. Additionally, identifying demographic trends that
affect an entire industry.

Trend analysis

Market tracking is the observation and analysis of trends in the industry volume and
brand share over time. Scanner research about trends in the industry give
researchers facts about sales and volume to support their work.

Environmental scanning

Environmental scanning entails information gathering and fact-finding designed to

detect early indications of environmental changes. Push technology targets specific
customer types, the value in push technology is that the researcher who is scanning
the environment can specify the kinds of news and information he/she wants.

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 2.2 Model Building: is the second objective for secondary data. Model building is
a mathematical representation of the relationship between two or more
variables, shows how one thing respondents to changes in another.

Estimating market potential for geographic areas

Marketers can estimate market potential using secondary data. In many occasions,
trade associations or another source publishes exact sale figures about certain
geographic locations, and marketers are able to forecast an estimate of the potential
profitability of an industry or product category.

Forecasting sales

Sales forecasting is the process of predicting sales totals over a specific period.
Accurate sales forecasting, especially for products in mature, stable markets,
frequently come from secondary data research that identifies trends and extrapolates
past performance into the future.

Analysis of trade areas and sites

Marketing managers examine trade areas using site analysis techniques that help
management select the best locations for operations. Secondary data analysis helps
managers make these site selection decisions. The index of retail saturation offers
one way to investigate retail sites and to describe the relationship between retail
demand and supply.

Advertising responses

A great deal of modelling in marketing research focusses on how advertising

influences consumers and business performance including the way advertising
intensity affects the rate at which a service is adopted or disadopted. Additionally,
other modes show that although banner ad clicks through rates are low, they do
contribute to increased sales.

2.3 Data Mining: the use of computer analytical routines to dig automatically
through huge volumes of data searching for useful patterns of relationships.

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 For example, neutral networks are a form of artificial intelligence in which a
computer mimics the way human brains process information and make decisions.

Market-basket analysis is a form of data mining that analyses anonymous point-

of-sale transaction databases to identify coinciding purchases or relationships
between products purchased and other retail shopping information. Customer
discovery involves mining data to look for patterns identifying who is likely to be
a valuable customer.

2.4 Database marketing and Customer Relationship Management (CRM):

A CRM system maintains customer databases containing customer names,

addresses, phone numbers, past purchases and responses. Data base marketing
is the practise of using CRM databases to develop one-to-one relationships and
precisely targeted promotional efforts with individual customers. Effective
database marketing requires vast amounts of secondary data to be integrated
into a CRM system.

3. Identify internal and external sources of secondary data:

Internal:

More and more, the exact distinction between internal and external sources of
secondary data becomes blurry with modern information technology.

Internal data is data that originates in the organisation and represents events
recorded by or generated by the organisation. Propriety data is perhaps a more
descriptive term and emphasize the fact that company owns and controls data.

Most organisations routinely gather, record and store internal data to help them solve
future problems. Internet technology is making it easier to research internal and
propriety data. Enterprise search is a search driven by an internet type search
engine that focusses on data within an organisations internal network. The result is
an open-source innovation effort that involves allowing other firms real time across
to otherwise proprietary data within the organisation.

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External:

External data are facts observed, recorded, and stored by an entity outside of the
researcher’s organisation.

Libraries: traditionally libraries are vast warehouses of information have served as a

bridge between users and producers of secondary data. The library deals directly
with the creators of information, such as federal government and indexes services.

The Internet: vast amounts of secondary data are conveniently available over the
internet. The virtual reference desk features link to calendars, dictionaries,
encyclopaedias and maps. Consumers also leave behind comments and ratings and
ask questions and get answers from other consumers who they may know.

Vendors: the information age offers many channels besides libraries which to
access data. Many external producers make secondary data available directly or
through intermediaries, which are called vendors.

Producers: classifying external secondary data by the nature of the producers of

information yields six basic sources: periodicals, government sources, media
sources, trade association sources, commercial sources and consumer data (Read
over page 157 – 160).

4. Describe the impact of single-source data and globalisation in the big

data era

As businesses become more global, so has the secondary data industry. Any
business with a website is a global company with the potential of reaching
consumers anywhere in the world.

Single-source data integrated information: The marketing research industry uses the
term single-source data for diverse types of data offered by a single company. It is
usually integrated on the basis of a common variable such as geographic area or
store. Ideally, a firm could go to a single source and get any type of secondary data
they may need.

Additionally, many government entities provide secondary information based on

statistics that they must collect in administering programs in their own countries.