Secondary Data

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Question 1

Secondary data is gathered and recorded by other people prior to, and for other purposes, than the current project. Among the secondary data to use when introducing a new product is sales data/ sales activity reports. This information is available in TV programs, movies, and documentaries. These data familiarizes the company to the sales, competition, current activities, and the recent changes happening in the market, which in return allows the company to locate target market, competition, and sales trends. This data in crucial in introducing a new product which is an essential activity if a company wants to survive and renew itself (Brown, 1995).

Other useful secondary data is the collection of customer feedback forms. The company allows customers to rate the products as well as vote for their popular items, and indicate their customer satisfaction. This information is important because the customer fills out their names, gender, contact information, and age-which is good while identifying potential customers for the company. The last secondary data to consider is government data. This data is in the form of government documents which are rich with accurate secondary data e.g. statistics, laws, regulations, demographics and trends, and consumer information. This information helps the company to determine the target market and also identify the growing trends in the place. A technical analysis shows that a firm that meets these requirements has a higher product as well as a competitive advantage, which in turn leads to higher product performance (Calantone, 2003).

Question 2. In order to come up with a profile of the purchasers who but the company’s products, a company needs to have the records of the sales made over time. A sales activity report would be important to use while constructing the profile as the information in the reports show how the customers respond to competition in the area and the sales trends. For example, analyzing daily sales activities helps a company to structure a profile so that it explains the nature of the sales and when the consumers increase sales e.g. during festive seasons. This in return helps the company to design its marketing, promotions, and pricing strategies. Customer feedback is also important as it provides the company with the information needed in designing the consumer profile.

References

Brown Shona L. (1995). Product Development. Academy of Management Review 20, pp. 343-378. Retrieved 21/8/2014

Calantone Roger. (2003). Controllable Factors of New product Success: Marketing Science 15, . Pp. 341-358. Retrieved 21/8/2014.