A2 Secondary Research Methods
Secondary research is information that already exists as it was collected for different research purpose. It is often quicker and cheaper to collect and many sources can easily be compared. However data may be out of date depending on when the initial research project took place. Secondary research may also not be specific to the requirements of the research project.
Methods of secondary research include news articles, industry reports, company websites, company reports and financial statements, government statistics and news articles.
Internal Secondary Research
Internal secondary research refers to the data that already exists in an organisation that can be used to inform future marketing planning. This may include past sales data, financial accounts, records of uptake on previous marketing campaigns and cost analysis of different marketing expenses.
Sources of Internal Data
Website monitoring is the process of monitoring and analyzing user engagement with the content of a website. Useful information may include site visits which can indicate a potential market but more complex data is also available. Popular content refers to the areas of a website customers are visiting. This can help marketers get quick data on products and information that is increasing and decreasing in popularity. Most websites provide owners information on the length of time users spend on different pages. This cab help marketers make assessments on whether areas of their site need strategies to maintain attention.
Bounce rate informs the owner how many customers leave the site without visiting a second page. A good campaign can encourage site visits, for example if it is very easy for an internet user to quickly click on an Instagram link to a website. However site visitors who do not explore further are unlikely to become customers.
Loyalty schemes are strategies used by retailers to encourage repeat custom. Customers sign up to an account and each time they purchase from that store they Gain points. These points can be used to purchase good and services. Organisations hold details on customers so can send them vouchers, discounts, details on new products and promotions. Loyalty schemes can be used in market research to track patterns of spending in different customers.
Examples of loyalty schemes include Tesco clubcard, Boots Advantage card and air miles accounts.
Conversion rate is the percentage of visitors to a website that fulfil a goal. If your goal is to make sales, how many people who visit your site actually end up buying something. The goal of a website may also be to get visitors to sign a mailing list. In this case, the conversion rate would be how many visitors sign up.
Accounting records such as statements of comprehensive income, financial position and cash flow can be used as sources of information. Financial statements can allow marketers to quickly analyse sales trends of different products and services.
Electronic point of sale (EPOS) are computerized systems to take payments, record records of payments and manage stock levels. Most retail checkouts are now computerized and any payment is entering directly into the EPOS system. EPOS records can be analyzed to generate marketing data. Trends in sales of different products can be easily accessed. Marketers can see what products are typically bought together and times of day or year different products are lore or less popular.
External Secondary Research
External secondary research refers to data that already exists outside an organisation that can be used to inform future planning. This may include exploring product ranges using competitor websites, news articles to analyse external factors, government publications on population data and data from organisations that analyse and report on industry data such as Mintel and Statista.
Sources of External Data
Competitor websites and social media can be used to maintain a thorough awareness of the offerings of rivals. Data such as price changes, new product launches, retailers and promotions will all be easily accessible. Some competitors may release information such as strategic plans and financial statements via their websites.
Specialist market intelligence agencies gather and analyse data on customer needs and preferences. They then sell this data either through individual reports or by selling subscriptions to customers to access their online data. Data may include market share of different companies and sales trends in different industries. Examples include Mintel, IPSO and Mori.
Government statistics are available for a range of different data types including product pricing, import and export data, population demographics, GDP and health data. Search a range of reports released by the government here.
Trade journals are periodicals that focus on content that is related to a particular trade or industry. Articles will likely include developments and predictions in the industry. Advertising in trade journals will be relevant to the industry.
Media sources such as news reports can give a wide range of relevant market data. Reports on the economy and current trends can indicate likely changes in demand.
Benefits and Limitations of Secondary Research
Benefits
Easy access to a wide range of sources.
Can be faster than primary.
Relatively inexpensive.
Limitations
Can be out of date.
The reliability of data can be unknown.
Is not collected for the same purpose.