Primary And Secondary Data

Marketing Research

The process of planning, collecting, and analyzing data relevant to a marketing decision.

Reasons to use Marketing Research

Improve the quality of decision making

Trace problems

Focus on keeping existing customers

Understand the ever-changing marketplace

Marketing Research

Why Good Marketing Research is Difficult

Dishonesty Intention mismatched to behavior Newness has no comparative basis

The Marketing Research Process

Define Problem Plan Design/ Primary Data Specify Sampling Procedure Analyze Data

Collect Data

Prepare/ Present Report

Follow Up

Secondary Data

Data previously collected for any purpose other

than the one at hand. ALWAYS

USE THIS FIRST

Sources of Secondary Data

Internal Corporate Information
Government Agencies Trade and Industry Associations Marketing Research Firms Commercial Publications

News Media

Advantages of Secondary Data

Saves time and money if on target

Aids in determining direction for primary data collection Pinpoints the kinds of people to approach

Serves as a basis of comparison for other data

Disadvantages of Secondary Data

May not answer the exact question of your research problem

Quality-Dont know who gathered it and how the data was gotten
Accuracy of data may pose a problem-Dont know age of the info and how biased the survey was

Primary Data

Information

collected for the first time.

ALWAYS

USE THIS LAST

Advantages of Primary Data

Answers a specific research question

Data are current

Source of data is known

Secrecy can be maintained

Disadvantages of Primary Data

Expensive Quality declines if interviews are lengthy Reluctance to participate in lengthy interviews

Types of Primary Data Gathering

1. Survey Research 2. Observational Research

Survey Research

The most popular technique for gathering primary data in which a researcher interacts with people to obtain facts, opinions, and attitudes.

Forms of Survey Research

Internet surveys

Mail Surveys Focus Groups7-10 people who participate in a group discussion led by a moderator

Mall Intercept Interviews

Telephone Interviews

Questionnaire Design Open-Ended Question

An interview question that encourages an answer phrased in respondents own words.

An interview question that asks Closed-Ended the respondent to make a selection Question from a limited list of responses.

ScaledResponse Question

A closed-ended question designed to measure the intensity of a respondents answer.

Observation Research

A research method that does not involve personal interaction between interviewer and subject.

Observation Research
People Watching People
Mystery Shoppers

Types of Observation Research

People Watching an Activity Machines Watching People

Audits

Traffic Counters

Observational Research Disadvantages

1. Data collection costs are high

Advantages
1. Eliminates bias from the interviewing process 2. Does not relay on the respondent's willingness to provide data

2. No insight on the problem that you didnt think to consider

FIGURE 8-2 Types of marketing information

TYPES OF DATA

Compiling and Delivering the Report

Data MiningUse of technology to search through data records looking for useful information. finds statistical links that highlight opportunities

Concept Check

1. What is the difference between secondary and primary data? A: Secondary data are facts and figures that have already been recorded before the project at hand, whereas primary data are facts and figures that are newly collected for the project.

Concept Check

1. What is data mining?

A: Data mining is the extraction of hidden predictive information from large databases to find statistical links that suggest marketing actions.