Market Research
Market research is the process of gathering and analyzing information about potential suppliers, products, and services in the marketplace. This information is essential for understanding the market dynamics, recognizing opportunities, and identifying potential suppliers. In procurement planning, market research helps project managers make informed decisions on which suppliers to engage, the level of competition, and price sensitivity. A thorough market analysis allows for identifying trends, exploring new technologies, and assessing supplier capabilities. By conducting market research, project managers can minimize risks, reduce costs, and establish a strong supply chain for the project.
Guide to Market Research - PMBOK Seventh Edition
What is Market Research?:
Market Research is an essential aspect of procurement planning in project management. In PMBOK's context, it involves gathering information about products and services to make informed project decisions.
Why is it Important?:
Market Research is crucial because it helps project managers identify, analyze, and compare potential vendors or suppliers. It also enables you to determine the availability, cost, quality of goods or services, and delivery timelines.
How it Works?:
Market Research works by gathering information through vendor catalogs, online searches, industry surveys, commercial databases, etc., and analyzing the collected data to assess market capabilities.
Exam Tips - Answering Questions on Market Research:
1. Understand the concept: Ensure you have a clear understanding of what market research is and its role in procurement planning.
2. Application-oriented: Most exam questions will require you to apply your knowledge rather than just recalling it.
3. Link with procurement: Understand how market research relates to other procurement processes.
4. Real-world examples: Relate the concept to real-world scenarios as the PMP exam focuses more on practical application.
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