CHAPTER 4

Exploratory Research
Design: Secondary Data
Marketing Research: An Applied Orientation
Instructor: Dr. Muhammad Adnan Waseem
Course: Applied Marketing Research
BBA 8th Semester
Learning Objectives
•Define primary and secondary data
•Identify advantages and disadvantages of secondary data
•Evaluate secondary data using key criteria
•Classify different types of secondary data
•Discuss internal and external secondary data sources
•Explain syndicated data sources and their applications
•Understand ethical considerations in secondary data use
Class Activity
• Quick discussion – Why do companies rely on secondary data?
Activity Details

• "If you were launching a new smartphone brand, how would secondary

data help you?"

• It could be cost-saving, trend identification, competitor analysis.

• Class Discussion: Highlights key points and elaborate on the importance

of secondary data.
 Overview of Secondary Data
•Primary Data: Collected firsthand for a specific research
problem
•Secondary Data: Previously collected for another purpose but
useful for current research
•Class Activity: Can you give real-life examples of primary vs. secondary
data
Class Activity – Primary vs. Secondary Data Discussion
• Objective: To help students differentiate between primary and secondary
data through real-life examples.
• Activity Details:
• Students: "Think of a recent purchase you made. What kind of information
might a company need to market that product to you?"
• Divide the class into small groups (5-6 students per group).
• Task: Each group must identify:
• One example of primary data that could be collected for that product.
• One example of secondary data that a company could use for marketing that
product.
• Discussion: Groups present their findings, and the instructor provides
feedback.
• Conclusion: Summarize the key differences between primary and secondary
data.
Advantages of Secondary Data
•Cost-effective
•Time-saving
•Can provide background information
•Useful for trend analysis
•Case Discussion: Nike’s Use of Consumer Panels for Market
Insights
Consumer Panels: Definition and
Purpose
• A consumer panel is a group of selected individuals who regularly
provide feedback, opinions, or purchasing behavior data over a period
of time. Companies and market research firms use these panels to
track consumer trends, preferences, and brand perceptions, helping
businesses make informed decisions.
Key Features of Consumer
Panels:
• Longitudinal Data Collection: Consumer panels provide insights over
time rather than from a single survey.
• Diverse Data Sources: Data is collected through surveys, purchase
tracking, product testing, and behavioral analysis.
• Targeted Audience: Panels can focus on specific demographics, such
as millennials, fitness enthusiasts, or frequent online shoppers.
• Syndicated vs. Custom Panels: Some panels are conducted by third-
party research firms (e.g., Nielsen, Kantar), while others are brand-
specific.
Types of Consumer Panels
• Purchase Panels: Track consumer buying habits and brand preferences.
• Usage Panels: Monitor how consumers use products post-purchase.
• Opinion Panels: Gather qualitative feedback on consumer attitudes.
• Loyalty Panels: Engage brand-loyal customers to understand retention
factors.
Example:
• Nike uses consumer panels composed of athletes and fitness enthusiasts
to test new footwear and apparel. The feedback helps refine product
designs, ensuring performance, comfort, and market fit before launch.
Nike, as a global leader in sportswear, relies heavily on consumer panels to gather insights into
customer preferences, product performance, and emerging trends. These panels consist of
carefully selected groups of consumers who regularly provide feedback on various aspects of
Nike’s products, including comfort, durability, style, and functionality. By leveraging syndicated
consumer data from firms like Nielsen and direct feedback from athlete panels, Nike refines its
product designs and marketing strategies. For example, before launching a new running shoe,
Nike often conducts extensive consumer panel testing to assess the shoe’s performance under
different conditions. This iterative feedback process allows Nike to make data-driven decisions,
ensuring their products align with consumer expectations and industry trends. Additionally,
consumer panel insights help Nike tailor regional marketing campaigns, ensuring the brand
remains culturally relevant in different global markets.
• “Why do you think companies like Nike invest in consumer panels
instead of relying solely on sales data?”
•What are the benefits of using consumer panels for a brand like Nike?
•How do consumer panels differ from traditional surveys?
•Can you think of other industries where consumer panels would be
valuable?
•Are there any downsides to relying on consumer panel insights?
•“If you were launching a new athletic shoe brand, how would you use
consumer panels to improve your product?”
Disadvantages of Secondary Data

• May be outdated

• Might not be relevant to the research objective

• Data accuracy and reliability concerns

• Activity: Evaluate a publicly available dataset using the "SECON"

criteria (Specifications, Error, Currency, Objective, Nature,
Dependability)
•Pakistan Bureau of Statistics (PBS) – Provides datasets on household income, expenditure, and consumer prices.
•State Bank of Pakistan (SBP) – Reports on inflation, banking trends, and consumer spending patterns.
•Gallup Pakistan – Conducts consumer surveys on public opinion, brand perception, and lifestyle trends.
•Pakistan Economic Survey – Includes data on industrial production, retail performance, and economic growth.
•All Pakistan Textile Mills Association (APTMA) – Provides insights into Pakistan’s textile market trends.

•Google Trends (Pakistan) – Tracks the most searched topics, brands, and trends in Pakistan.
•Meta (Facebook) Ad Library – Pakistan – Shows active Facebook ads running in Pakistan.
•Pakistan Telecommunication Authority (PTA) – Data on mobile and internet penetration, useful for digital
marketing insights.
•Pakistan E-commerce Policy Report – Includes insights into Pakistan’s growing e-commerce sector.
Evaluating Secondary Data
• Specifications: Methodology used to collect the data
• Error: Accuracy of the data
• Currency: When the data was collected
• Objective: Purpose of the data collection
• Nature: Content of the data
• Dependability: Reliability of the source
• Activity: Analyze a research article and assess the secondary data
used
Classification of Secondary Data

• Internal Secondary Data

• Generated within the organization

• Example: Sales reports, CRM data

• External Secondary Data

• Collected by third parties

• Example: Government reports, syndicated data

• Activity: Group discussion – Which type of secondary data is more

valuable?
Internal Secondary Data

• Database Marketing: Using internal data to segment and target

customers

• Loyalty Programs: Using past purchase behavior to predict future

buying

• Case Study: Starbucks’ Use of Customer Data for Personalization

 Case Study: Starbucks’ Use of
Customer Data for Personalization
Starbucks leverages customer data to deliver highly personalized experiences through its
loyalty program, mobile app, and AI-driven recommendations. By analyzing purchase history,
location data, and customer preferences, Starbucks tailors promotions, suggests customized
drink options, and sends targeted discounts to individual customers. The Starbucks Rewards
program, which has over 30 million active members, collects vast amounts of data that help
refine menu offerings and predict future purchasing behaviors. Additionally, AI-powered
insights enable Starbucks to optimize store layouts, introduce region-specific products, and
improve customer engagement. This data-driven personalization strategy has significantly
boosted customer retention, increased sales, and enhanced brand loyalty.
External Secondary Data

• Government Sources: Census data, trade reports

• Published Sources: Market research reports, industry white papers

• Computerized Databases: Business directories, academic databases

• Activity: Search government databases and find market reports on a

selected industry
Syndicated Sources of Secondary
Data
• Syndicated Data from Households
• Surveys
• Purchase & Media Panels
• Scanner Data
• Syndicated Data from Institutions
• Retailer and wholesaler audits
• Industry reports
• Case Discussion: How Nielsen uses scanner data to analyze consumer
behavior
• Nielsen collects scanner data from retail stores, supermarkets, and e-
commerce platforms by tracking product purchases at the point of
sale through barcodes. This data provides real-time insights into
consumer buying patterns, brand preferences, pricing sensitivity, and
the effectiveness of promotions. Companies use Nielsen’s scanner
data to monitor market share, identify sales trends, and adjust
marketing strategies based on actual consumer purchases rather than
survey responses. For example, in Pakistan, FMCG companies leverage
Nielsen’s scanner data to determine which products are performing
well in different regions, helping them optimize inventory, pricing, and
advertising campaigns. This data-driven approach enables businesses
to make informed, evidence-based decisions to enhance customer
engagement and sales growth.
Class Activity: Exploring Syndicated
Data in Pakistan
• Activity Details:
• Divide the class into small groups (4-5 students per group).
• Assign each group a Pakistani industry (e.g., FMCG, telecom, banking, e-
commerce, retail).
• Task: Each group must research and identify one syndicated data provider
in Pakistan (e.g., Nielsen, Gallup Pakistan, Pakistan Bureau of Statistics).
• Discussion Questions:
• What type of syndicated data does this provider offer?
• How can companies in your assigned industry use this data for decision-making?
• What are the limitations of using syndicated data in Pakistan?
• Presentation: Each group shares their findings in 2-3 minutes.
Single-Source Data & Computer
Mapping
Single-Source Data:
Single-source data refers to data collected from the same set of consumers across
multiple touchpoints, such as advertising exposure, purchase behavior, and
media consumption. It helps marketers understand how different marketing efforts
influence consumer decisions.
Example:
•A company tracks a household’s TV ad exposure, online searches, and actual
purchases using loyalty card data.
•Nielsen’s single-source panels track consumers' exposure to ads and their
subsequent buying behavior.
Key Benefit:
•Provides a holistic view of how marketing efforts (ads, promotions) impact sales and
brand engagement.
Computer Mapping
• Definition:
Computer mapping uses GIS (Geographic Information Systems) to visualize
consumer data geographically. It helps businesses understand regional
demand, store locations, and customer demographics.
• Example:
• McDonald's uses GIS mapping to select store locations based on population
density, competitor presence, and customer traffic.
• Retailers use heat maps to analyze which areas have the highest sales
performance.
• Key Benefit:
• Helps in location-based marketing, sales forecasting, and market expansion
strategies.
Class Discussion Question
• "How can Pakistani businesses use single-source data and GIS
mapping to improve their marketing strategies?"
Secondary Data in International
Marketing Research
• Challenges: Different data collection methods, varying accuracy levels

• Need to cross-verify sources

• Ethical concerns in using international data

• Case Discussion: How Coca-Cola tailors market strategies using global

secondary data
• Coca-Cola leverages global secondary data from sources such as market research reports,
consumer surveys, social media analytics, and syndicated data providers like Nielsen
and Euromonitor to adapt its marketing strategies for different regions. By analyzing
consumer preferences, purchasing behavior, economic trends, and cultural factors,
Coca-Cola customizes its product offerings, pricing, and advertising campaigns. For
instance, in emerging markets like Pakistan and India, secondary data on local beverage
consumption trends has led to the introduction of smaller, more affordable packaging to
cater to price-sensitive consumers. Similarly, in health-conscious markets, Coca-Cola has
expanded its low-sugar and zero-calorie product lines based on secondary data indicating
growing demand for healthier beverages. This data-driven approach helps Coca-Cola
maintain its competitive edge and align with local consumer needs across diverse global
markets.
Ethical Issues in Secondary Data
Usage
• Misuse of data

• Privacy concerns

• Using outdated or misleading data

• Activity: Debate – Is it ethical for companies to buy consumer data?

Summary & Key Takeaways

• Secondary data is a cost-effective and quick way to gather insights

• Evaluating data quality is crucial

• Various sources exist, including internal, external, and syndicated data

• Ethical considerations must be addressed

Class Discussion & Q&A

• What are the biggest challenges in using secondary data?

• How does secondary data complement primary research?

• What are some emerging trends in secondary data usage?