Answer to Question #284976 in Marketing for Chen

Question

What are the advantages of collecting information from internal sources (like your co￾workers), compare to collecting information from external sources?

Answer 1

One of the biggest advantages of internal data is that it is readily available for analysis. The ability to make quick decisions is enhanced by almost-instant access to information. Your accounting reports might state that expenses have been rising faster than profits and you'll be inclined to know why that is so.

The use of internal source in collecting information also reduces the Costs. This is because hiring external researchers is often more expensive than using your existing employees. Keeping the tasks in-house also means you can control and monitor expenses and resources better. Another advantage of using internal sources when collecting data is that it is more secure. Keeping research in-house can help prevent leakage of information or intellectual property outside of the organization.

Internal data is information generated from within the business, covering areas such as operations, maintenance, personnel, and finance. External data comes from the market, including customers and competitors. Its things like statistics from surveys, questionnaires, research, and customer feedback. Internal data helps you run your business and optimize your operations while external data helps you better understand your customer base and the competitive landscape.