The effectiveness of marketing activities depends on oil the proper evaluation of the components of markets. That is the demand of a product, consumer’s attitudes towards the product; price level, competitor’s strategy etc. are the key factors which have the strong influence on the marketing strategy of the marketing strategy of the company.
This market report plays a vital role in formulating the marketing strategies. The report which reveals the demand for a product, consumer’s attitude and the trend of other related factors is known as a market report.
In other words, a market report is an analysis of the key factors of the market.
Market report is essential not only for the preparation of marketing strategy for existing products but it is also a precondition for the development of new products. Importance of market reports are as follows:
- Demand forecasting: Through the market report, the demand for the products or the company can be estimated.
- The idea about consumer’s attitude: Market survey, especially psychological research on the market helps to identify the needs of the customers and attitude of the customers’ toward the products of the company.
- To increase. the market share: Through the market report, proper competitive strategies can be taken by the company which will help to increase the market share.
- Select proper channel of distribution: Whether consumers are satisfied with the existing channel of distribution or not can be identified by the market report and accordingly necessary measures can be taken.
- Fixation of right price: The Market report also helps to fix appropriate prices of the products of the company.
- Selection of right media for advertisement: Statues of the consumers, nature of the market, the expectation of the buyers etc. can be evaluated through a market report, thus it becomes easier on the part of the executives to select the right media.
- New product development: William David, rightly said, “Great products are invented in the marketing departments of a company but the idea of a new product developed with the help of market reports.”
- Decision making: Market report facilitates all kinds of decision making of the marketing department.