Marketing Research
Aaker, Kumar, Day and Leone
Tenth Edition
Instructor’s Presentation Slides
2
Chapter Five
Secondary Sources of
Marketing Data
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Data Sources
Primary Data
Secondary 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
Benefits Limitations
• Low cost • Collected for some other purpose
• Less effort • No control over data collection
• Less time • May not be accurate
• Sometimes more accurate • May not be in correct form
• Sometimes only way to • May be outdated
obtain data • 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, Computer retrievable
publications of Trade directories databases ("online"
various trade databases)
associations)
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Classification of Computer-retrievable
Databases
Computer Retrievable Database
Based on the Method of Storage
Based on the Type of Information
and Retrieval of Information
On-line CD-ROM Floppy Disc
Source Reference
Databases Databases Databases
Direct from Direct from Indirect through
Internet
Vendors Producer Networks
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Computer-Retrievable Methods
Advantages Limitations
• Scope of information available • Rely solely on the accuracy of the
• Speed of information access and abstract author
retrieval • Depend on the journal and article
• Commercially available search selection policy of the database
procedures provide considerable producer
flexibility and efficiency • 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 Broadcasting 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
•Census data
•Standard Industrial Classification (SIC)
•Trade association data
•Experts and authorities
Monitoring the Environment
•Press releases
•Legislation and laws
•Industry news
•Business and practitioner literature, such as magazines
Segmentation and Targeting
•PRIZM
•CLUSTER PLUS
•ACORN
•DMI
•NAICS
•TIGER
Developing a Business Intelligence System
•Competitor’s annual reports
•Press releases
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Sources of Secondary Data for International
Marketing Research
• United Nations • United Nations • Dun and
• World Bank yearbooks Bradstreet
• Business • U.S. publications
International Department of (e.g., Exporter's
Publications commerce guide)
• Euromonitor • The Economist • Price
(publication) Waterhouse
• World Casts
• Worldcasts publications
Economic Industry Background
Data Data Data
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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
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