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Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization

Poll Question

Internal secondary data, such as a firm’s daily sales, are more important than external secondary
data, such as a trade publication article.
Strongly Strongly
1 2 3 4 5
Disagree Agree

The poll question is designed to add a level of interactivity both inside and outside the classroom
and between the student and the book.

Interaction Inside the classroom – A show of hands, the use of clickers, having students text or e-
mail their answers … All of these, and more, are possible ways of allowing students to make their
voices heard on this issue. Poll questions could be a solid class opener.

Interaction Outside the classroom – Have students access www.cengagebrain.com and search for
MR (the official name of the book) to answer the poll questions for this and all chapters. Once
there, they can also see how their answer compares with other students taking this course at
other universities.

© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
2 Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization

Interaction between Student and Book – It is difficult to truly answer this question without
consideration for the context. Thus, the answer might be, “It depends.” The possible scale
equivalent of “it depends” is a neutral or neither disagree or agree answer. All things being equal,
we would agree with this statement as discussed in the Introduction (page 43) and the Internal
Secondary Data (starting on page 45) sections—but it really depends upon whether the internally-
available data address the issue at hand. This poll question, like others, will be at least addressed,
if not directly answered, in the text of the chapter. As an instructor, you have the choice of asking
them to answer the poll question unaided (before reading the chapter) or aided (after reading the
chapter). In fact, an interesting follow-up question might be, “Did you read the chapter before
answering the poll question?”

Fast Facts

Sales of Old Spice Body Wash have risen 11% in 12 months since the launch of the “Smell Like a
Man, Man” campaign.

Fast Facts are designed to enhance the consumption of marketing research. They are spread
throughout the book. Also, Tracy Suter provides new Fast Facts daily (except Sundays) on Twitter
at @TracySuter. Follow him, encourage your students to follow him, and join the discussion.

The more interesting aspect of these Fast Facts is they can be used multiple ways to spark class
discussion from both a marketing and a research perspective.

Marketing Perspective: Sometimes it is difficult for a firm to make a direct connection between an
advertising campaign and sales. In the case of this Old Spice campaign, it has the potential to be
an iconic campaign. The technical excellence of the individual spots is ground breaking.
Moreover, the overall social media integration via both YouTube and Twitter are also ground
breaking. Enhanced sales and industry awards have followed, while “Old Spice Guy” Isaiah
Mustafa has become a breakout acting star.

Research Perspective: This is another example highlighting internal secondary data. Basic sales
data are not necessarily collected for research purposes, but it is an excellent way to measure
marketing effectiveness as an ongoing, everyday part of business.

As a reminder, suggest students find their own Fast Facts. What types of Fast Facts are interesting
to them? What topics are of interest? If they bring their own Fast Facts to class on topics of more
interest to them, marketing research will be more interesting and more relevant. If they have
Twitter accounts, encourage them to send the facts to @TracySuter as they discover them.

Learning Objectives

Upon completing this chapter, students should be able to:

 Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization 3

Learning Objective 1 Explain the difference between primary and secondary data.
Primary data are originated by the researcher for the purpose of the investigation at hand, to
answer a specific question related to a specific business decision. Secondary data are statistics
not gathered for the immediate study, but for some other purpose.

Learning Objective 2 Cite two advantages offered by secondary data.

The most significant advantages offered by secondary data are time savings and money savings
for the researcher.

Learning Objective 3 Explain the difference between internal and external secondary data.
Internal data are those found within the organization for which the research is being done;
external data are those obtained from outside sources.

Learning Objective 4 Define what is meant by a decision support system (DSS).

A decision support system is designed to help managers make better decisions. A DSS includes a
data system that includes internally as well as externally generated data, a model system with
analytic techniques for working with the data, and a dialog system that allows managers to
develop and access customized information.

Learning Objective 5 List three common uses of the information supplied by standardized
marketing information services.
The information supplied by standardized marketing information services is commonly used to
(1) profile customers, (2) measure product sales and market share, and (3) measure advertising
exposure and effectiveness.

Chapter Outline

I. Introduction
II. Advantages and Disadvantages of Secondary Data
III. Internal Secondary Data
A. Decision Support Systems
(Exhibit 4.1 – Decision Support System)
1. Components of Decision Support Systems
(Exhibit 4.2 – Super Crunchers Are Thinking-by-Numbers)
IV. External Secondary Data
4 Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization

A. Searching for Published External Secondary Data

(Exhibit 4.3 – Searching for Published Sources of External Secondary Data)
B. Using Standardized Marketing Information Services
1. Profiling Customers
(Exhibit 4.4 – Sample Median Household Income Demographic Data)
2. Measuring Product Sales and Market Share
a. (Online) Diary Panels
b. Scanners
3. Measuring Advertising Exposure and Effectiveness
a. Television and Radio
b. Print Media
c. Internet
(Exhibit 4.5 – Top 10 Web Brands for March 2011 (U.S., Home and Work))
d. Multimedia Services

PowerPoint Highlights
 Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization 5

Slide 5 – Secondary versus Primary Data

Slide 6 – Advantages and Disadvantages of

Secondary Data

Slide 8 – Internal versus External Data

6 Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization

Slide 9 – Decision Support Systems (DSS)

Slide 13 – External Secondary Data

Student Challenges (Possible Answers are bulleted)

1. List some major secondary sources of information for the following situations:

a. The marketing research manager of a national soft-drink manufacturer has to

prepare a comprehensive report on the soft-drink industry.

• The soft drink industry: National Licensed Beverage Association Industry

Directory, Washington, D.C.; National Soft Drink Bottlers Directory, WMD
Publications, New York; Beverages, All American Publishers Service, Inc.,
Illinois; Beverage World, Keller Publishing Corporation, New York; Beverage
Retailer Weekly, New York; Food Beverage Service Handbook, Air Publishing
Company, Inc., Connecticut, 1970; Annual Survey of Manufacturers, U.S.
Bureau of the Census, Washington D.C.; Almanac of Business and Industrial
Financial Ratios; Prentice Hall, Inc., New Jersey.

b. Owning a grocery store has been Mrs. Smith’s dream, and she finally decides to
make it a reality. The first step she wants to take is to collect information on the
grocery business in her hometown.
 Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization 7

• The grocery business: Progressive Grocer's Annual Report of the Grocery

Trade, New York; Current Business Reports: Weekly Retail Sales Report,
Advance Monthly Retail Sales Report, Monthly Retail Trade Report, and
Annual Retail Trade Report, U.S. Bureau of the Census, Washington, D.C.;
Grocery Bulletin Buying Guide and Directory, California; Thomas Grocery
Register, New York; Progressive Grocer's Marketing Guide Book, New York;
Grocery Bulletin, Bulletin Enterprises, Inc., California; Grocery Products and
Promotion News, Product Promotion Publications, California; Progressive
Grocer, Progressive Grocer Publishing Company, New York.

2. Using the current U.S. Statistical Abstract (www.census.gov/compendia/statab/),

answer the following questions:

a. Which metropolitan statistical area in the United States has the largest
population?

• New York–Northern New Jersey–Long Island, NY–NJ–PA (2009)

www.census.gov/compendia/statab/2011/tables/11s0020.pdf

b. What is the population of this metropolitan area?

• 19,070,000 (2009)
www.census.gov/compendia/statab/2011/tables/11s0020.pdf

c. What is the median age of the U.S. population?

• 36.8 years (2009)

www.census.gov/compendia/statab/2011/tables/11s0007.pdf

3. Something interesting is happening regarding the data contained in Exhibit 4.5. From
June 2010 to March 2011, Facebook moved from third place behind Google and Yahoo!
to second, behind only Google in terms of the Top Web Brands. Complete the
comparison table below with the most recent data to see whether Facebook has passed
Google for first place. Facebook was already well ahead in time per person, but the
ranking is based on unique audience metrics.

June 2010 Brand Unique Time per Rank Brand Unique Time per
Rank* Audience Person (Current Audience Person
(000) (hh:mm:ss) Date) (000) (hh:mm:ss)
1 Google 152,494 1:13:01 1
2 Yahoo! 132,412 2:11:10 2
8 Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization

3 Facebook 127,011 6:02:59 3

*Source: The Nielsen Company, accessed July 28, 2010, from
http://blog.nielsen.com/nielsenwire/online_mobile/june-2010-top-online-sites-and-brands-in-the-u-s/.

Teaching Tips

1. Exhibit 4.2 discusses the ever-expanding reach of data mining. Amazon.com does it.
Apple’s iTunes does it. Even Netflix and eHarmony employ data mining. One of the
newer entrants is Hunch. Billed as a personal recommendation engine, Hunch starts
with a long list of questions (THAY, or Teach Hunch About You), then mines these data
to recommend—well, anything. It also has a social media component by allowing users
to follow other users. If you and/or the students are so inclined, build Hunch profiles or
at least review THAY questions to see how this sort of data becomes a personalized
recommendation or read the Hunch blog (http://blog.hunch.com/) to see how Hunch is
mining the data currently available from users.

2. Discuss the difference between primary data and secondary data.

3. Next turn to a discussion of the advantages and disadvantages associated with the use
of secondary data, in essence the trade-off between cost and time economics versus
ill-fit and unknown accuracy and why the trade-off occurs.

4. Turn then to a discussion of the criteria one can employ to judge the accuracy of
secondary data. It is helpful here to introduce an example in which there are two
sources of secondary data but the data conflict. Be reminded of the HDTV example in
Chapter 1. It is always best to go with the primary or original source of secondary data.

5. Then discuss the various types of secondary data and how one goes about searching for
the secondary data that are available on a given topic.

6. Discuss decision support systems by giving particular focus to data, dialog, and model
systems. At that point, students should be able to appreciate discussing the emerging
dialog system. It is helpful to describe one or two of these systems using available
promotional literature put out by the companies involved.

7. A useful method for framing a secondary data discussion is to present various scenarios
and to use class discussion to develop the advantages and disadvantages of addressing the
problem using particular commercial databases. An example is provided below.

• An advertising agency has prepared two alternative television commercials for a new
brand of tennis shoe, and wants to determine which ad is more effective at reaching a
specific target market (i.e., which version sells more shoes). A division of a very
 Chapter 4 – Collecting Secondary Data from Inside and Outside the Organization 9

successful multiproduct firm is developing the new brand, so money for testing the
alternative commercials is not a primary concern. Moreover, the company prefers to
test the ads in an actual selling environment. Discuss the use of BehaviorScan data (for
additional insight visit
http://symphonyiri.com/ProductsSolutions/AllProducts/AllProductsDetail/tabid/159/p
roductid/29/Default.aspx) versus the more traditional methods for assessing the
effectiveness of commercials (e.g., methods relying upon recall or recognition of
brands from commercials). What trade-offs might occur in the choice of one method
over the other?

Discussion points:

o The traditional approaches might measure awareness of the brand, yet fail to tie
that awareness to sales
o BehaviorScan is designed to directly assess the impact of a specific advertisement
on subsequent purchase behavior
o BehaviorScan is likely to be much more involved and expensive to implement