Primary Market and Industry Sources of Information
Primary markets are supply markets where suppliers sell to manufacturers the primary products and inputs required in the production or manufacturing process e.g. raw materials, natural resources, etc.
Primary market research is a field-based research which is done from scratch by a company with the aim of gathering information that can be used to improve the products, services, and its processes. The information is gathered through qualitative or quantitative research methods. This kind of market research is the most common and valuable type because it only answers specific questions without touching on irrelevant issues.
Primary sources of information are obtained by interviewing those in the best position to understand the issues associated with the supply of goods and services required to meet the buyer’s needs.
Sources of primary information include;
1. Surveys and questionnaires
Surveys are straightforward methods of finding out about the customers’ satisfaction by means of written or online questionnaires.
2. Observation
The techniques that can be used during observation can be through interaction and communication with the research subjects or through no interaction with them.
3. Trials and experimentation
This involves scientific or laboratory tests performed within controlled environments or out in the field. After a stated period of time the results are analysed and conclusions made.
4. Interviews
This method is used to dig deeper into the customers’ expectations, by interacting and directly asking them prepared questions or in the form of a conversation.
5. Suppliers
Suppliers can give information about their business and industry. They will provide current information other than the buyer having to spend hours doing secondary research. However, others may be biased towards their own operations and not give accurate information.
6. End-users of the goods and services, and procurement staff
Those that have been dealing with the suppliers directly can be interviewed since they may have knowledge about suppliers’ performance and the supply markets, and can provide unbiased information. Procurement and technical staff in other organizations who purchase similar goods and services from these suppliers can also provide valuable information.
7. Quality assurance auditors
Quality assurance auditors regularly deal with different organisations and develop a good knowledge of products and services available from various companies, they are aware of different organisations’ capabilities, and how they operate in the supply market.