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.
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.