Importance of Market Report

Market report is regarded as the mirror of the economic condition of a country. An effectively prepared market report presents the entire market conditions relating to buying and selling of a particular product to the readers. In this way, it helps the readers in taking their own decisions. It is also important in many other ways. Importance of market report is discussed below:

Informs market condition: Market report presents information regarding transactions, buying, selling, supply, demand, price level, price fluctuations, price index etc. of a product in a particular market. So the interested parties can know their necessary market information by reading the market reports.

Helps in taking decisions: Information is the fuel for taking decisions. Market reports provide information on market conditions. As a result, readers can take appropriate decisions.

Helps in preparing plans: Managers need market information for preparing routine and long term investment plans. Market report provides such information to the concerned managers.

Helps in buying and selling of goods: Market report provides market information on various products such as jute, tea, share, debenture, fish, vegetable etc. On the basis of those information business persons can perform their business activities like production, buying, selling etc.

Gaining knowledge on demand and supply of products: By reading market reports the concerned parties can know the information relating to demand and supply of any product. It helps the businessmen to take necessary steps regarding probable surplus and shortage of that product.Importance of Market Report

Expansion of market: In this age of globalization no country can confine its trade culture, knowledge etc. within its own boundary. By studying market report, business persons can know the global business conditions and can take necessary actions accordingly.

Passive publicity of products: Market report presents information on product quality, price, brand etc. These information acts as publicity of products.

Knowing the causes of price fluctuation: By reading market report, readers can get the information relating to the causes and remedies of price fluctuation of a product.

Helps in speculation: Speculators buy goods on future contract form the present market in anticipation of earning profit in future. They receive necessary market information from market reports.

Forecasting the provable recession and boom: By comparing and analyzing the information presented in market reports, business persons can forecast the probable future economic boom or recession and can take necessary steps.

Gaining knowledge on produce exchange and stock exchange: Generally, standardized agriculture products and shares, stocks, debentures etc. of public limited companies are traded in produce exchange and stock exchange respectively. By studying the market reports on produce exchange and stock exchange, the concerned parties can benefit themselves.

Helps in foreign trade: Market reports on international trade help the prospective local business persons in searching foreign market, knowing global demand and supply of any product. This helps them in entering into foreign trade.

Helps in determining the price: Price is determined by the interaction of demand and supply of a product. Market report provides information on current and future supply and demand of the product. This helps in determining present and future prices of the product.

Types of Market Report | Classification of Market Report

Market reports may be of different types in terms of products, structure of the reports and nature of the users of the reports. For convenience, market reports are mainly classified into the following three categories: a. Market report based on product and service b. Market reports based on organization and c. Market report based on time.

Market reports based on product and service: These types of market report can also be classified into the following three categories.
Types of Market Report

  1. Market report on industrial goods: Industrials goods are those that are not used in consumption but used in producing consumer goods. When reports are prepared containing market transactions on any industrial goods, these are termed as market reports on industrial goods. Market reports on jute, petroleum, coal etc. are the examples of market report on industrial goods.
  2. Market report on consumer goods: The reports that contain market transactions on agricultural and manufactured consumer goods are known as market reports on consumer goods. By nature these reports are of following two types.
  • Market report on agricultural consumer goods: When a market report contains market information on various agro products, such as pulses, fish, meat, vegetables etc. it is termed as market report on agricultural consumer goods.
  • Market reports on industrial consumer goods: This type of market report includes transactions only on industrial consumer goods, such as oil, soap, garment, shoe, television etc.

3. Market reports on service provided: Sometimes market reports are prepared by incorporating various data on different service-provider companies, like banks, insurance companies, telecommunication companies etc. These reports are known as market reports on service provided.

Market report based on organization: Report may be of various types on the basis of the nature of organizations. Some of these are discussed below:

  1. Stock exchange report: When reports are prepared by incorporating transactions occurred in any stock exchange, are known as stock exchange report. Dhaka Stock Exchange Report, Chittagong Stock Exchange Report etc. are the examples of stock exchange report.
  2. Money market report: When reports are prepared on the basis of information such as buying capacity of currency, exchange rates, demand and supply of various currencies know as money market report. These types of reports may be of the following two kinds: Local currency market report and foreign currency market report. Dhaka Currency Market Report, New York Currency Market Report etc. are the examples of currency market report.

Market report based on time or period: Different market reports are prepared for different duration of time depending on the nature of market conditions, durability of market etc. The followings are the frequently prepared market reports based on time:

  1. Daily market report: Daily market report is prepared by incorporating various market transactions of a particular product in a particular market place in a day. Generally, these types of reports are prepared for the products of daily essentials and for the products whose prices change frequently. Daily reports on rice market, fish market and Stock Exchange etc. are the examples of daily report.
  2. Weekly market report: Weekly market report is prepared by incorporating transactions occurred in a particular week in a particular market place and on a particular product.
  3. Fortnightly market report: This type of report generally prepared by mentioning transactions occurred bi-weekly in a particular market place.
  4. Monthly market report: Monthly market report is generally published at the end of the month mentioning the market conditions and transactions of that month.
  5. Annual market report: Annual market report presents transactions on a product occurred in a particular year in any market. This type of report is generally prepared in analytical form and covers detailed information relating to overall transactions, buying, selling, supply, demand etc. of a particular product in a particular market for a year.