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welcome to the first lesson of module 2. in the previous module you'll learn how to determine your sourcing strategy now it's time to do market research before we move forwards let's first clear the confusion between market analysis and market research market analysis involves examining overall market dynamics Trends and opportunities providing a comprehensive understanding of the market on the other hand market research focuses on Gathering specific data about customers competitors and Trends to support decision making in short market analysis is Broad and Market Research is specific let's now move on to Market Research market research involves gathering and analyzing information about suppliers products Services pricing and market trends this knowledge will allow you as a procurement manager to make informed decision and identify potential suppliers who can meet your needs market research has three types primary research This research may include interview surveys and focus groups secondary research this includes industry Publications academic journals and government reports and competitive analysis this type of research includes looking at the competitors products prices and marketing strategies you may still wonder why you need market research and procurement process well market research is important as it will help you gain a comprehensive understanding of the marketplace additionally market research will help you come up with the exact number or amount of the needed supplies moreover it helps you to identify potential suppliers negotiate better prices and ensure that you are getting the best possible products and services some of the questions that you should ask during market research should be the following what do I need to buy for my company what are my current suppliers what are other suppliers in the market that can deliver the same do I have alternative suppliers in the case the original supplier it's gone is there a shortage of the material for what I need to buy if yes will this affect my budget allocation now it's time to check the three powerful strategies for conducting market research and procurement first we have product research product research involves collecting information about the product such as it features benefits and competitors in procurement if you're going to buy a product then you need to understand the product this is a sort of Golden Rule among procurement managers market research is essential to success without it you run the risk of buying products that will not sell at all when doing product research always look at the following Trends always look at Trends in the product category and look at how companies deal with the trends store data when you look at specific stores what do the numbers tell you are the products interesting enough to keep the store afloat consumer demand finally check if the products are in high demand have a look at what the consumers are asking for make sure to get every data available the second step in product research is asking for product samples this way you and your procurement team can have a closer look at the product after testing it gather with your team and discuss your findings you can also take the sample through your team and have them test them out and look for anything weird or strange with the product if you have a dedicated quality team that looks into these things then even better carefully record everything observed with the samples the third step is giving an evaluation after conducting samples and trial runs it's time for you and your Market team to evaluate the results regardless of whether you decide to continue working with a supplier or not providing an evaluation is important for both your team and the supplier assess whether the products achieve the goals you initially set determine if the product exceeded expectations fell short or met them as planned additionally evaluate how the product was received in stores or by end users to gain insights into What markets acceptance conducting a thorough evaluation will help you make informed decisions and understand the product's performance for future consideration additionally assess the effectiveness of communication between the procurement teams and the supplier did the products arrive within the expected time frame were there any complications or delays during the delivery process were there any concerns or issues raised by either party promptly addressed and resolved furthermore evaluate the condition of the products upon arrival considering these evaluations will provide you and your team with insights on how to proceed with your product sourcing strategy remember to regularly evaluate all suppliers even after the production run to ensure continuous Improvement and Optimal Performance we created a template that will help you to determine which suppliers from your market research are reliable and which one may not be it allows you to assess and compare their performance at trustworthiness enabling you to make informed decisions and choose reliable suppliers for your needs it's a rep congratulations on completing the first lesson of module two in this lesson we delved into the importance of Market Research in the procurement process additionally we explored three powerful strategies for conducting market research it will enable you to enhance your procurement strategy see you in the next lesson foreign