chapter three copyright © 2006 john wiley & sons, inc. secondary data and database

Chapter Three

Chapter Three

Copyright © 2006John Wiley & Sons, Inc.

Secondary Data and Database

John Wiley & Son, Inc 2

1. To understand how to create an internal database.2. To learn about building a database from Web site

visitors.3. To Become familiar with data mining.4. To understand the advantages and disadvantages of

using secondary data.5. To understand the role of the Internet in obtaining

secondary data.6. To be come familiar with the types of databases

available on CD-ROM.7. To learn about types of information management

systems.

Learning Objectives


The Nature of Secondary Data To understand the advantages and

disadvantages of secondary data.

• Secondary Data: – Data that have previously been gathered and that

might be relevant to the problem at hand.• Primary Data:

– New data collected to solve a particular problem.• Internal:

– Information originating within the company• External:

– Outside sources of secondary information


The Nature of Secondary Data

To understand the advantages and disadvantages of secondary data.

• Advantages of Secondary Data1. Clarify the problem.

2. May provide a solution.

3. May provide primary data research method alternatives.

4. May alert the marketing researcher to potential problems or difficulties

5. May provide necessary background information and build credibility for the research report


The Nature of Secondary Data To understand the advantages and

disadvantages of secondary data.

• Limitations of Secondary Data– Lack of Availability– Lack of Relevance– Inaccuracy

1. Who gathered the data?2. What was the purpose of the study?3. What and when was the information collected?4. How was the information collected5. Is the information consistent with other information?

– Insufficiency


To understand how firms create an internal database.Internal Data

Bases• Internal Database

– a collection of related information developed from data already within the organization.

• Creating an Internal Database– Salesperson’ “call report”– Sales results– Customer preferences


To understand how firms create an internal database.

Internal Data Bases

• The Growing Importance of Internal Database Marketing – Database Marketing

• A large computerized file of customer and purchase patterns.

– Micromarketing• Database marketing can get a customized, individual

message to everyone simultaneously through direct mail


To learn about building a database from Web site visitors.

• Creating Databases From a Web Site -A Marketer’s Dream– Customer’s link to an online store is a two-way

electronic link– Allows online merchant to gather information

about the customer• Cookies

– Text file place on a user’s computer in order to identify the user when there is a return visit to the Web site

Internal Data Bases



• Data Mining– Neural network– Data mining

• The use of statistical and other advanced software to discover non-obvious patterns hidden in a database

– Potential Uses of Data Mining in Marketing:• Customer acquisition• Customer retention• Customer abandonment• Market basket analysis

Internal Data Bases



• The Battle over Privacy– Privacy policies will be mandatory– Clear choice to “opt-in” or “opt-out”– Ability to correct sensitive information– Penalties for noncompliance.

Internal Data Bases


To understand the role of the Internet in obtaining secondary data.

• URLS (Uniform Reference Locator)– Address that identifies a particular location

• Search Engines– AltaVisa, Dogpile, and Google

• Sites of Interest to Marketing Researchers– See www.wiley.com/college/mcdaniel

• Periodical, Newspaper, and Book Databases

• Newsgroups– Function like bulletin boards for a particular topic or

interest

Finding Secondary Data on the Internet


• There are 70 federal agencies that publish data– Statistical Universe or through LEXIS-NEXIS STATIS

• www.cispubs.com

– FEDSTATS• www.fedstats.gov

– White House Briefing Room• www.whitehouse.gov/WH/html/briefroom.html

– Economic issues• www.whitehouse.gov/fsbr/esbr.html

– Social issues• www.whitehouse.gov/fsbr/ssbr.html

To understand the role of the Internet in obtaining secondary data.

Finding Secondary Data on the Internet


• Companies that off databases– Claritas International

• Compass/Agency

• Compass/Newspaper

– InfoUSA• See list of databases in Exhibit 3.1

– BusinessUSA

– HouseholdsUSA

– Physicians & Surgeons

– Big Business

– Manufacturers

– Small Business Owners

Databases on CD-ROM

To become familiar with the types of databases available on CD-ROM


• Marketing Research Aggregators– Marketing Research Aggregator– Role of Aggregator Firms– Major Aggregators

• AllNetResearch.com

• Profound.com

• Bitpipe.com

• USADATA.com

• MarketResearch.com

To become familiar with the types of databases available on CD-ROM

Databases on CD-ROM


• Information Management– Development of a system for capturing, processing, and storing

data so that it can be readily found and retrieved when needed for management decision making

• Geographic Information System (GIS)– Includes a demographic database, digitized maps, and software

that enables the user to add corporate data to the mix– Spatial Querying

• Decision Support Systems (DSS)– Designed to support the needs and styles of individual decision

makers• Interactive• Flexible• Discovery-oriented• Easy to learn and use• Hypothetical example

To learn about types of information management systems

Information Management


• The Nature of Secondary Data

• Internal Databases

• Finding Secondary Data on the Internet

• Databases on CD-ROM

• Information Management

SUMMARY

chapter three copyright © 2006 john wiley & sons, inc. secondary data and database

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