SD-5 Market ResearchThe purpose of this document is to provide DoD and other Federal personnel involved in the acquisition process with practical guidance on using market research to ensure the acquisition of products and services that will best serve the government??s needs. Specifically, this document is designed for personnel involved with establishing requirements for products or services, such as engineers, technical specialists, project officers, and customers; personnel involved with purchasing products or services, such as contracting officers, contract specialists, and cost analysts; and personnel who support the acquisition process, such as logisticians, testing and quality assurance specialists, and legal counsel.

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Market research can be viewed as consisting of two parts or phases: strategic market research, also called market surveillance, and tactical market research, also called market investigation.The delineation between where strategic market research ends and tactical market research begins is not clear-cut. Generally, however, strategic market research is an ongoing process that focuses

on finding information about the broad market. It can be done independently of any specific acquisition requirement, as well as in conjunction with one. Keeping current with the latest de- velopments in the market is one example of strategic market research.

The information gained from strategic market research can be used to focus the efforts of tactical market research.Tactical market research is conducted in response to a particular need

or acquisition and is designed to answer specific questions. It is more focused and in-depth than strategic market research.The scope will vary based on factors such as the market, the size and complexity of the acquisition, and the type of information sought. Figure 3 illustrates this concept.

For most market researchers, the Internet is the preeminent source of information.Through the Internet, you can research a vast topic relatively quickly. Internet searches provide leads to explore. And the sources uncovered are, for the most part, current. Moreover, much of the in-

Figure 3. Market Research Overview

Strategic Market Research (Market Surveillance)

Tactical Market Research (Market Investigation)

Commercial product or service?

Modified commercial product or service?

Modified requirement?

Noncommercial product or service?

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Acquisition Strategy, Product Description/Statements of Work, Terms and Conditions, etc.