Secondary and Primary Data

AMA Collegiate Marketing Research Certificate Program

Module Objectives

• Introduce secondary and primary data

• Present some of the advantages and disadvantages of using secondary data vs. primary data

The local mall is not generating the traffic expected. They need to find out who comes to the mall, why, how often they come, and what would attract more frequent shoppers.

Problem Scenario

A French chef wants to open a restaurant in your community. She wonders whether a fancy, expensive French restaurant could be successful there. She wants to know more about the city and its population (income levels, types of occupations, education levels, composition of households, major employers, etc.).

Problem Scenario

Your community wishes to determine the driving public's use of seat belts

Problem Scenario

You have been asked you to determine which of several prototype toys are most appealing for two- and three-year-olds

Problem Scenario

You are starting a business when you graduate. You think radio might be a good way to advertise but are unsure of what stations best match your target market demographics.

Problem Scenario

• Take a step back –starting from scratch, how do marketers find the data needed to help make decisions?

• Currently available data?• What new data need to be collected?

So, What Data Do You Need?

Internal data

Marketing intelligence

Marketing research

Marketers Obtain Information From

Internal Data

Internal Data

Collections of consumer and market information obtained from data sources within the company network

Detailed customer data on 40 million U.S. households, gleaned from phone orders, online orders, and point-of-sale transactions at its more than 7,500 restaurants

Example of Internal Data

Marketing Intelligence

Marketing Intelligence

Is the systematic collection and analysis of publicly available information about consumers, competitors and developments in the marketplace

Secondary Data

Advantages

Cost

Speed

Coverage

Disadvantages

Current

Relevant

Accuracy

Impartial

Marketing Research

Marketing research

Marketers Obtain Information From

Marketing research is the systematic design, collection, analysis, and reporting of data relevant

to a specific marketing situation facing an organization

Primary Data

New data you collect to answer specific questions or serve specific needs

– Surveys– Focus groups– Depth interviews– Experiments– Observational studies

Primary Data - Limitations

Do you have the time and money for:– Designing your collection instrument?– Pretesting/piloting the instrument to work out

sources of bias?– Administration of the instrument?– Entry/collation of data?

Secondary or Primary?

• What is your research question?• What data/variables are needed to answer that

question?

Secondary or Primary Data?

• If the needed data exist in secondary form, then use it to the extent you can, keeping in mind limitations

• But if it does not, and you are able to fund primary collection, then it is the method of choice

Concluding Comment

• Start with secondary data• Close the loop with primary data

Secondary Data

Primary Data

Decisions