CHAPTER 4

EXPLORATORY RESEARCH DESIGN:

SECONDARY DATA

FIGURES
Figures
Figure 4.1
Figure 4.2
Figure 4.3
Figure 4.4
Figure 4.5

A Classification of Secondary Data

A Classification of Published Secondary Sources
A Classification of Computerized Databases
A Classification of Syndicated Services
Sources of Secondary Data for International
Marketing Research

Table 4.1
Table 4.2
Table 4.3

A Comparison of Primary and Secondary Data

Criteria for Evaluating Secondary Data
Overview of Syndicated Services

Tables

CHAPTER OBJECTIVES
1.

Define the nature and scope of secondary data and distinguish secondary data from primary
data.

2.

Analyze the advantages and disadvantages of secondary data and their uses in the various
steps of the marketing research process.

3.

Evaluate secondary data using specifications, error, currency, objectives, nature, and
dependability criteria.

4.

Describe in detail the different sources of secondary data including internal sources and
external sources in the form of published materials, computerized databases, and syndicated
services.

5.

Discuss in detail the syndicated sources of secondary data including household/consumer

data obtained via surveys, purchase and media panels, and electronic scanner services, as
well as, institutional data related to retailers, wholesalers, and industrial/service firms.
Explain the need to use multiple sources of secondary data and describe single-source data.

6.

53

7.

Discuss applications of secondary data in computer mapping.

8.

Identify and evaluate the sources of secondary data useful in international marketing
research.

9.

Understand the ethical issues involved in the use of secondary data.

10. Discuss the use of the Internet and computers in researching secondary data.
AUTHORS NOTES: CHAPTER FOCUS
This chapter provides an overview of secondary data. Secondary data are defined and their
advantages, disadvantages, and evaluations discussed. A classification of secondary data is
presented. Internal sources, published external sources, computerized databases, and syndicated
sources of secondary data are discussed. The usefulness of combining secondary data from
different sources is emphasized. Applications of secondary data in the context of a buying power
index and computer mapping are provided.
This chapter provides a more extensive discussion of secondary data, including syndicated
services, than other competing texts. The several classifications of secondary data, presented in
Figures 4.1 through 4.5, are unique to this book.
This chapter could be taught by focusing on the chapter objectives sequentially. It would
be important to cover the nature of secondary data (Chapter Objective 1), the criteria for the
evaluation of secondary data (Chapter Objective 3), internal data, published external sources, and
computerized databases (Chapter Objective 4), and the material on syndicated sources (Chapter
Objective 5). The need to use multiple sources should be emphasized (Chapter Objective 6).
International marketing research (Chapter Objective 8), ethics in marketing research (Chapter
Objective 9), and the Internet and computers (Chapter Objective 10) should also be covered.
CHAPTER OUTLINE
1)
2)
3)
4)
5)

6)
7)

Overview
Primary Versus Secondary Data
Advantages and Uses of Secondary Data
Disadvantages of Secondary Data
Criteria for Evaluating Secondary Data
i. Specifications: Methodology Used to Collect the Data
ii. Error: Accuracy of the Data
iii. Currency: When the Data Were Collected
iv. Objective: The Purpose for Which the Data Were Collected
v. Nature: The Content of the Data
vi. Dependability: How Dependable Are the Data?
Classification of Secondary Data
Internal Secondary Data
54

8)

9)
10)
11)

12)

13)
14)
15)
16)

17)

i. Database Marketing
Published External Secondary Sources
i. General Business Sources
a. Guides
b. Directories
c. Indexes
d. Nongovernmental Statistical Data
ii. Government Sources
a. Census Data
b. Other Government Publications
Computerized Databases
i. Classification of Computerized Databases
ii. Directories of Databases
Syndicate Sources of Secondary Data
Syndicated Data from Households
i. Surveys
a. Psychographics and Lifestyles
b. Advertising Evaluation
c. General Surveys
d. Uses of Surveys
e. Advantages and Disadvantages of Surveys
ii. Purchase and Media Panels
a. Purchase Panels
b. Media Panels
c. Uses of Purchase and Media Panels
d. Advantages and Disadvantages of Purchase and Media Panels
iii. Electronic Scanner Services
a. Uses of Scanner Data
b. Advantages and Disadvantages of Scanner Data
Syndicated Data from Institutions
i. Retailers and Wholesaler Audits
a. Uses of Audit Data
b. Advantages and Disadvantages of Audit Data
ii. Industry Services
a. Uses of Industry Services
b. Advantages and Disadvantages of Industry Services
Combining Information from Different Sources: Single-Source Data
International Marketing Research
Ethics in Marketing Research
Internet and Computer Applications
i. The World Wide Web as an Online Source of Secondary Data
ii. Internal Secondary Data
iii. General Business Sources
iv. Government Data
v. Computerized Databases
vi. Syndicated Sources of Information
vii. International Secondary Data
SPSS Windows
55

18)
19)
20)

Focus on Burke
Summary
Key Terms and Concepts

TEACHING SUGGESTIONS
Chapter Objective 1

Discuss the nature of secondary data.

Begin by defining secondary data as data that has already been collected for purposes
other than the problem at hand. The data are often found internally, and also from
published materials, computerized databases, or from syndicated services. Finally, note
that secondary data are characterized as easily available and relatively inexpensive to
obtain.
Figure 4.1 provides a framework for discussing the types of secondary data.

Describe the scope of secondary data.

Note that secondary data can cover a broad range of factors that affect the problem at
hand. It does not always fit the specific problem at hand, but can be useful in developing
an approach to the problem and providing a comprehensive understanding of the problem
environment.

Begin the class by having students suggest sources of secondary data with which
they are familiar with and keep a list on the board. Then proceed to discuss the
sources outlined in the text and see how many sources they overlooked.
* See Questions 1, 2, and 3.

Chapter Objective 2

Identify the advantages of secondary data.

Secondary data can help you:
1.

Identify the problem.

2.

Better define the problem.

3.
4.

Develop an approach to the problem.

Formulate an appropriate research design (for example, by identifying the key
variables).

5.

Answer certain research questions and test some hypotheses.

56

6.

Interpret primary data more insightfully.

Examination of available secondary data is a prerequisite to the collection of primary data.

Proceed to primary data only when the secondary data sources have been exhausted or
yield marginal returns.

Identify the disadvantages of secondary data.

Because secondary data have been collected for purposes other than the problem at hand,
their usefulness to the current problem may be limited in several important ways, including
relevance and accuracy.
o

The objectives, nature, and methods used to collect the secondary data may not be
appropriate to the present situation.
Secondary data may be lacking in accuracy, or may not be completely current or
dependable.

Tables 4.1 and 4.2 will be useful when covering this information.
* See Questions 17 and 18.
Chapter Objective 3

Explain the criteria for evaluating the quality of secondary data with an example.
Review the following criteria when evaluating the suitability and reliability of secondary
data. Your example should allow the students to address the six criteria below.
1)

The purpose for which data were collected.

2)

The content of the data.

3)

Methodology used to collect the data.

4)

When the data were collected.

5)

Accuracy of data.

6)

The overall dependability of the data.

* See Question 19.

Chapter Objective 4

57

List the various internal sources of secondary data and explain their benefits to the
researcher.
Begin by noting that internal sources can supply some of the most vital data for research.
The information generated by the corporations daily business operations can represent a
wealth of data useful to the researcher and should be the starting point of a project. It
offers the advantages of being proprietary to the company and is available at a low cost
relative to outside suppliers.
As an example, discuss sales data. Sales data are valuable information for any marketing
project because it shows the exact results of a program, salesperson, or sales region.
Actual costs allow the researcher to estimate costs for a research study or project costs for
a marketing program. Detailed information can be gathered on precise questions; for
example, the percentage of sales to industry versus government, or sales broken out by
company accounts. With planning, sales data can be recorded in the companies
management information systems to allow for optimal use by analysts.

Discuss the chore of locating published secondary data that is appropriate for a
researcher.
It should be easy to convince students that published data abound but that the key is
knowing where to look for it. Both government and nongovernmental published sources
exist, as well as guides, directories, and indexes to help locate the necessary information.
The difficulty is locating either the right directory or index to guide you, or to understand
the classification system used. A good librarian is a real advantage and can cut down the
search time remarkably. You may want to bring a copy of a directory or index to show
how complicated they can be to use.
Figure 4.2 may be used here as a framework for your discussion on this topic.

Describe the importance of the government census data as a major source of

secondary data.
Note that the U.S. Bureau of the Census (www.census.gov) is the worlds largest source
of statistics. Census data can provide important information on demographics,
manufacturers, retail trade agriculture, transportation, and so on. Moreover, stress that the
quality of census data is very high, making it a very reliable and useful source.
If students filled out the 2000 Census, ask them to relate their impressions of the form and
the information it sought. If you have a copy of the long form, review it with students and
speculate how different information sought in the form could be useful to a marketing
researcher.

Comment on the growing use of computer databases in marketing research.

As an introduction, mention that the use of databases has increased phenomenally due to
the rocketing sales of PCs and due to the increase in the number of vendors providing
such databases. Both online and offline databases are available consisting of bibliographic,
58

numeric, full-text, directory, and specialized databases. In addition, directories of

databases exist to aid in locating the proper information. See if the students can find two
databases of secondary data other than the ones listed in the book.
Figure 4.3 classifies the types of computer databases.
* See Questions 4, 5, and 6.
Chapter Objective 5

Define and list the syndicated sources of secondary data.

Start with the definitioncompanies which collect and pool information and sell it to a
number of clients are termed syndicated sources of data. They provide information on both
the consumer and industrial market via a variety of data gathering techniques. Based on
the unit of measurement, syndicated services can be classified as household/consumeroriented or institutionally-oriented. Figure 4.4 can be used as a guide for the ensuing
discussion of syndicated services.
Household services emphasize the consumer. The most popular form of measurement is
the survey, although the use of electronic scanner services is growing in importance. Ask
students to reflect on the advantages and disadvantages of electronic scanner data.
Institutional services emphasize the distribution chain. Information is more difficult to
obtain here because of the strategic and proprietary nature of information in the business
realm. As a result, it is often the case that valid reports on institutions will be more general
than most marketers would like.
As a review, Table 4.3 can be used to compare and contrast syndicated services.

Define and evaluate the benefits of electronic scanner services.

Have students recall that scanner data are collected by passing merchandise over a laser
scanner that optically reads the bar coded description printed on the merchandise and
compiles a database of sales/inventory. Its advantages and disadvantages can simply be
listed.
Advantages:
1)

The data collected are free from any biases.

2)

In store variables, such as pricing, promotions, and displays, are part of the data set.

3)

The data are likely to be more current as compared to other methods.

59

4)

The data reflects actual purchases, not just intended purchases.

Disadvantages:

1)

There is a lack of representativeness.

2)

Scanner services are limited as to geographical dispersion.

3)

Quality of scanner data may be impaired due to various factors. For example, not all
product categories may be scanned, the item may not scan on the first try, etc.

Discuss how the Nielsen TV ratings can affect the price that advertisers are ready to
pay for a commercial broadcast during a particular time.
Mention that Nielsen TV ratings provide an estimated figure of the viewership of any
program. Obviously, the more viewership of the program, the more people can be reached
by advertising during the time that program is being broadcast. Therefore, if the Nielsen
TV ratings are higher, the advertisers would be willing to pay a higher price for their
commercials.

Compare and contrast panels and surveys.

First, define a panel as a sample of respondents that provide specified information at
regular intervals over an extended period of time. The distinguishing feature of purchase
panels is that the respondents in the panel are required to record specific behaviors as they
occur. In media panels, the behavior is automatically recorded by electronic devices.
Advantages:
1)

Panels provide longitudinal data, i.e. data obtained from the same respondents
repeatedly.

2)

Panel members may provide higher quality data than would a sample because of their
willingness to serve on the panel.

Disadvantages:

1)

Most panels are not representative of the U.S. population.

2)

Over a period of time maturation sets in and the panel members must be replaced.

3)

Response biases may occur as simply being on the panel may alter behavior.

Explain the meaning and usefulness of psychographics and AIO.

First, define psychographics as psychological characteristics of consumers that can be
quantified. They can then be classified as consisting of two types of variables: lifestyle and
personality.
60

A lifestyle may be defined as a distinctive pattern of living that is described by the activities
people engage in, the interests they have, and the opinions they hold of themselves and the
world around them. These activities, interests, and opinions are termed AIOs. The AIOs
can be used to segment people into groups with different lifestyles and then the marketing
effort can be geared to meet the needs of any group(s).

Describe scanner data and explain its growing relevance to marketing research.
Scanner machines are commonly found in retail stores at the checkout stand. The
merchandise is passed over a laser scanner that optically reads the bar code on the
merchandise and records the information. Three types of scanner data are available.
Volume tracking data, scanner panels, and scanner panels with cable TV. The volume
tracking data provide information on purchases by brand, size, price, and flavor or
formulation based on sales data collected from the checkout scanner tapes. In scanner
panels, each household member is given an ID card that looks like a credit card. After
shopping, the panel member presents the ID card at the beginning of the checkout process.
The checker keys in the ID number, and each item of that customers order is isolated and
entered into the computer. The information is stored by day of week and time of day. An
advanced use of scanning combines panels with the cable TV industry. Households on
these panels subscribe to one of the cable TV systems. By means of a cable TV split, it is
possible to target different commercials into the homes of the panel members.
This data can be used by marketing researchers in a variety of ways. National volume
tracking data can be used for tracking sales and prices, distribution analysis, modeling, and
early warning signal analysis. Scanner panels with cable TV can be used for new product
testing, product repositioning, promotional mix analysis, advertising decisions including
budget, copy, and media decisions, and pricing analysis. These panels provide marketing
researchers with a unique controlled environment for the manipulation of marketing
variables.
* See Questions 7, 8, 9, 10, 11, 12, 13, 14, and 15.

Chapter Objective 6

Discuss the need to use multiple sources of secondary data.

Address the fact that no single source of secondary data can provide information that
completely fits the need of the present problem. Moreover, each method has certain
weaknesses. One may suffer from biases, the other may be dated, the third may not be very
accurate, and so on. Mention that combining various secondary sources can cancel out the
weaknesses of one another and provide accurate, comprehensive, and high-quality data.
* See Question 16.

Chapter Objective 7

61

Explain how the BPI is useful to marketing managers.

Simply stated, BPI measures the relative market potential of a geographic region by
considering three parameters: demographic segmentation, economic strength, and
distribution coverage. As such, it is useful for market planning, new product evaluations,
sales goals, allocating media, and selecting test markets.

Chapter Objective 8

Examine the sources of international market information.

Important government sources are:
o
o
o
o
o
o
o
o

Department of Commerce
Agency for International Development
Small Business Administration
Export-Import Bank of the United States
Department of Agriculture
Department of State
Department of Labor
Port Authority of New York and New Jersey

The Department of Commerce offers not only a number of publications but also a variety
of other services, such as the foreign buyer program, matchmaker events, trade missions,
export contact list service, the foreign commercial service, and custom statistical service
for exporters.
Nongovernment organizations:
o
o
o
o
o
o

United Nations
Organization for Economic Cooperation and Development (OECD)
International Monetary Fund (IMF)
World Bank, International Chambers of Commerce
Commission of the European Community to the United States
Japanese External Trade Organization (JETRO)

Sources in foreign countries include governments, international organizations located

abroad, trade associations, and private services, such as syndicate firms.
Figure 4.5 provides a classification of international information sources.
Chapter Objective 9

Discuss the ethical situations pertaining to secondary data.

62

Note the four ethical issues that are the most pertinent are:
1)

The needless collection of primary data when the problem can be addressed based
only on secondary data.

2)

Limiting the research to only secondary data when primary data are needed to answer
the research question.

3)

The use of secondary data that is not relevant or applicable to the research problem.

4)

The use of secondary data that has been gathered through morally questionable
means.

Chapter Objective 10

Explain the World Wide Web as an online source of secondary data.

The search for secondary data is facilitated by some generalist search engines like Yahoo!
or Alta Vista, which require only some key words to retrieve hundreds of sites related to
one subject. One can also go directly to the Web site of some traditional suppliers of
secondary data. Large organizations have intranets that greatly facilitate the search for
access to internal secondary data. Organizations, like the New York Times, conducting
business on the Internet have a natural advantage in building large customer databases and
implementing database-marketing programs.
American business information can be obtained by visiting various business related sites
that provide sales leads and mailing lists, business profiles and credit ratings. Several U.S.
government sources can be reached from FedWorld (www.fedworld.gov). The U.S.
Department of Commerce can be reached at www.commerce.gov. The Bureau of Census
information can be reached via the Department of Commerce (www.commerce.gov), or
directly at www.census.gov. For new product announcements one can reach the following
site: www.access.gpo.gov.
For syndicated sources of information one can visit the home pages of the various
marketing research companies and providers of syndicated information. The AC Nielsen
home page at www.acnielsen.com is a very good source. Computers can be used to not
only access but also to analyze, and store information available from on- and offline
databases. Several syndicated services make information available for use on
microcomputers and mainframes.

EXERCISES
Questions
1)

The differences between primary and secondary data are that primary data are originated by
the researcher for the specific purpose of addressing the problem at hand although
63

secondary data are data that have already been collected for purposes other than the
problem at hand.
2)

It is important to obtain secondary data before primary data because secondary data, as
compared to primary data, are easily available, inexpensive, and retrieving secondary data
requires a short amount of time. In addition, secondary data generally provide valuable
insights for collecting primary data.

3)

The difference between internal and external secondary data is that internal data are those
available within the organization for which the research is being conducted although external
data are those generated by sources outside the organization.

4)

The advantages of secondary data are that secondary data are easily accessible, less
expensive, and less time consuming to obtain than primary data.

5)

The disadvantages of secondary data are that their usefulness to the current problem may be
limited in relevance and accuracy.

6)

The criteria to be used when evaluating secondary data are: to examine the methodology
used to collect the data to identify possible sources of bias in the data, to determine whether
or not the information is accurate enough for the present purposes, to determine whether or
not the data is current enough for the present purposes, to determine why the data were
collected in the first place, to determine the nature of the data, and to determine the overall
dependability of the data.

7)

The various sources of published secondary data include business guides, directories,
indexes, nongovernmental statistical data, government sources, computerized databases, and
syndicated publications.

8)

The different forms of computerized databases are Internet, online or offline databases that
can be further classified as bibliographic, numeric, full-text, directory, or specialized
databases.

9)

The advantages of computerized databases are that the data are current and up-to-date, the
search process is more comprehensive, much quicker, and greatly simplified, the cost of
accessing these databases is low, and it is convenient and easy to access this data with a
personal computer fitted with an appropriate communication device such as a modem or a
communication network.

10) The various syndicated sources of secondary data consist of companies which collect and
sell common pools of data designed to serve information needs shared by a number of
clients. These may be classified as household/consumer information or institutional
information. Household/consumer information services include services which derive their
information from 1) surveys, which can be psychographic and lifestyle surveys, general
surveys or advertising evaluation surveys 2) mail/online panels, which are either purchase
panels or media panels, and 3) electronic scanners, which can be either volume tracking
data, scanner panels, or scanner panels with cable TV. Institutional information services
include services that monitor retailers, wholesalers, and industrial firms. An audit may be
64

conducted on retailers and wholesalers, whereas information on industrial firms includes

direct inquiries, clipping services, and corporate reports.
11) The nature of the information collected by surveys includes consumers underlying motives,
attitudes, and preferences.
12) The surveys can be classified on the basis of their content as psychographics and lifestyles,
advertising evaluation, or general surveys.
13) A panel comprises samples of respondents that provide specified information at regular
intervals over an extended period of time. In purchase panels, the respondents record their
purchases of a variety of different product categories although in media panels, electronic
devices automatically record viewing behavior, thus supplementing a diary.
14) The relative advantages of panels over surveys are: Panels provide data that can be obtained
from the same respondents repeatedly, panel members may provide more and higher quality
data because of their willingness to serve on the panel, recall errors are not present in
purchase panels, and information recorded by electronic devices is also more accurate
because human errors are eliminated.
15) The kinds of data that can be gathered through electronic scanner services are volume
tracking data, scanner panels, and scanner panel with cable TV.
16) Scanner data can be used for a variety of purposes in which national volume tracking data
can be used for tracking sales and prices, distribution analysis, and modeling and early
warning signal analysis. Scanner panels with cable TV can be used for new product testing,
product repositioning, promotional mix analysis, and advertising decisions including budget,
copy and media decisions, and pricing analysis.
17) An audit involves a formal examination and verification of product movement by examining
physical records or performing an inventory analysis. The uses of audit data include: (1)
determining the size of the total market and the distribution of sales by type of outlet,
region, or city, (2) assessing brand shares and competitive activity, (3) identifying shelf space
allocation and inventory problems, (4) analyzing distribution problems, (5) developing sales
potentials and forecasts, and (6) developing and monitoring promotional allocations based
on sales volume. The advantages of audit data are that audits provide relatively accurate
information on the movement of many different products at the wholesale and retail levels,
and this information can be broken down by a number of important variables such as brand,
type of outlets, and size of market. The disadvantages of audit data are that not all markets
or operators are included in the audit, audit information may not be timely or current, and
audit data cannot be linked to consumer characteristics.
18) The information provided by industrial services is useful for sales management decisions
such as identifying sales prospects, defining sales quotas, and measuring market potential by
geographic areas. It is also useful for advertising decisions such as targeting prospects,
allocating advertising budgets, selecting media, and measuring advertising effectiveness.
19) It is desirable to use multiple sources of secondary data in order to compensate for the
weaknesses of one method by the strengths of another.
65

Problems
1)

These data may be easily obtained from the Internet. Alternatively, Table 22.1 may be used.

2)

Do not expect the two estimates to be identical. Research methods, databases, and
researcher judgments will all vary.

Internet and Computer Exercises

1)

Students may choose any computerized database relevant to their selected industry. They
should be able to produce the output from their search.

2)

Students should obtain the relevant information about the firm using both internal and
external sources available on the Internet.

3)

A wide variety of information can be obtained. Students should show the relevance of each
type of information to the formulation of domestic marketing strategy.

4)

Students should first select appropriate criteria (e.g., population of the elderly, wealth of the
elderly) and then rank the states on that basis. Top six states for marketing products to the
elderly: Alabama, Alaska, Arizona, Arkansas, California, and Colorado.

5)

The retail sales figures should be given in the aggregate for the United States and also
broken down by major classifications.
The panels maintained by NPD (www.npd.com) are briefly described in the text. Many
details are available on the Internet. The following is the list of the types of panels
maintained by NPD:

6)

o
o

The HTI Consumer Panel. The HTI Consumer Panel consists of 400,000
households, which can be contacted by mail or by telephone.
NPD Online Panel. The NPD Online Panel is a pre-recruited group of online
consumers who have agreed to participate in surveys on the World Wide Web.
ConsumerSCOPE International. ConsumerSCOPE International provides international consumer research for over 50 categories with over 500,000 households
responding throughout Europe, North America, and South America.
The American Shoppers Panel. An ongoing panel of 16,000 households, The
American Shoppers panel is balanced to U.S. demographics.
The Consumer Panel of Canada. Research for the Grocery Industry.
National Eating Trends Panel. NET maintains a panel of 2,000 households to
track the consumption habits of the U.S. population.
66

CREST (Consumer Reports on Eating Share Trends). CREST measures

consumer purchases of prepared meals and snacks from commercial restaurants via
a panel of 13,000 households.
NPD North American Home Opinion Panel Surveys, with truly representative
samples, carried out in an affordable way.
Sufferer Panel. The NPD Sufferer Panel offers direct access to almost 130,000
households prescreened for over 60 medical conditions.
NPD EUROTOYS Consumer Panel. NPD EUROTOYS Consumer Panels
provides todays toy manufacturers with a total market analysis of the European
marketplace.

It is possible that new panels have been added and some old ones deleted. So please check
www.npd.com.
7)

The services of AC Nielsen include: retail, consumer panel, media and customized research
services; information services; retail measurement services; consumer panel services; media
measurement services; customized research services; and Internet services. The company
also offers value added services such as: information delivery services; merchandising and
sales; modeling and analytical services; and client servicing. It is possible that new services
have been added and some old ones deleted. So please check the AC Nielsen Web site.

ACTIVITIES: QUESTIONS AND ANSWERS

Role Playing
Q1. You are the marketing research manager of a local bank. Management has asked you
to assess the demand potential for checking accounts in your metropolitan area. What
sources of secondary data should you consult? What kind of information would you
expect to obtain from each source? Ask a group of fellow students to play the role of
management and explain to them the role of secondary data in this project.
A1.

SOURCE

INFORMATION

a) Internal Data

Current customer profile,

geographic penetration, average
customer account size

b) Findex/CIRR

Published sources on local banking

c) Census Data

Population, households, income

d) County Business Patterns

Local business information

e) County and City Data Book

Local demographic data

67

f) Syndicated Sources

Psychographics and lifestyle data

Q2. You are the group product manager for Procter & Gamble in charge of laundry
detergents. How would you make use of information available from a store audit? Ask
another student to play the role of Vice President of Marketing. Explain to your boss
the value of store audit information related to laundry detergents.
A2. A product manager would analyze store data to determine:
a)

Sales volumetotal, subtotal by outlet, subtotal by area.

b)

Product performancehave we increased or decreased sales over the past period?

c)

Competitive actionshas a past strategy been successful?

d)

Develop sales forecasts.

e)

Inventory and distributiondoes existing inventory balance demand?

Fieldwork
Q1. Make a trip to your local library. Write a report explaining how you would use the
library to collect secondary data for a marketing research project assessing the
demand potential for Cross soft tip pens. Please be specific.
A1. The purpose of this assignment is to get students into their local library to explore the
sources of secondary data available there. All of the sources listed in Chapter 4 may not be
available, but many should be. Encourage them to browse through the sources in order to
familiarize themselves with the presentation and contents.
Group Discussion
Q1. Discuss the significance and limitations of the government census data as a major
source of secondary data.
A1. Census data are extremely useful to marketers because it provides a wide variety of data
available in many forms. The quality of the data are very high and it is often broken out in
specific detail. Finally, because it is a census, as opposed to a sample, sampling error is
minimal.
The limitations of census data include the fact that the volume of data available makes
finding the right information difficult. Much time may be spent just locating the figures
needed. Furthermore, the data are of a general nature and may not provide the specific
information needed.
68

Q2. Discuss the growing use of computerized databases.

A2. Issues, which students can address, include the advantages of computerized databases:
current and up-to-date information, efficiency of literature searches, low cost, and
convenience and ease of use. Additionally, it underscores the need for businesspeople to be
computer literate.
Q3. Discuss how the Nielsen TV ratings can affect the price advertisers pay for a
commercial broadcast during a particular time.
A3. The goal of advertising is to reach and positively influence potential purchasers toward your
product. Because Nielsen ratings reflect the percentage of viewers who watch a particular
program, advertisers will be willing to pay more for programs with high ratings in order to
reach the most viewers possible.

69