Principles mean proven guidelines in performing a task. Preparing report is a complex and specialized task. Therefore some principles should be followed in preparing market report. Some important principles or considering factors in preparing market report are discussed below:
- Simplicity of language: Language of market report should be simple and easy so that the readers can understand it easily.
- Correctness: An ideal market report should be free from all types of errors like grammatical errors, spelling errors, presentation errors etc. This will increase the acceptability and attractiveness of the report.
- Accurate presentation of market conditions: Market report must give an accurate picture or market transactions, purchase and sale, demand and supply, price etc.
Specific structure: Market report should be prepared by following a definite structure. This enables the readers to locate their desired information.
- Relevance: Market report should present only the information relevant to the market transactions. Presenting any irrelevant information will decrease its acceptability.
- Clarity: The massage of the report must be clear and unambiguous. Clarity depends on proper arrangement of information, accuracy of information and use of appropriate language.
- Preciseness: Market report should mention the relevant information precisely. Preciseness helps to save time and efforts of the readers and writers.
- Impersonal presentation: Impersonal presentation of information is another vital principle of market report. It means, the report should not be written by addressing someone directly.
- Use of technical terms: In order to indicate various market conditions and mode of transactions, various technical terms and jargons can be used in the report. For example, to indicate price increase in the market, the term “upward trend” and to indicate price decrease in the market, the term “downward trends” can be used.
- Consistency: The contents of the market report should be consistent to each other. Any inconsistency in the contents of report will negatively affect its utility.
- Inclusion of necessary causes and explanations: Market events might be caused by one or more causes. Therefore, it is necessary to explain the possible causes of every market event.
- Neutrality: Market report is regarded as a neutral statement of market conditions. Hence, information contained in the market report must be neutral and free from any business.
- Reporter’s remarks: Reporter’s Neutral opinion certainly increases the acceptability of the report to its readers. Therefore every ideal market report must contain remarks of the reporter.