BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

MARKET REPORTS
Market and Its Types:

A set up where two or more parties engage in exchange of goods, services and information is
called a market. Ideally a market is a place where two or more parties are involved in buying
and selling.
The two parties involved in a transaction are called seller and buyer.
The seller sells goods and services to the buyer in exchange of money. There has to be more
than one buyer and seller for the market to be competitive.

Classification of Markets:

1. Commodity Market:

1. Produce exchange market

2. Manufactured goods market
3. Bullion Market

2. Capital Market:
3. Whole Sale Market:
4. Retail Market:

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

What is Market Report or, what is marketing report? A market report is a kind of report which contains
the information regarding the overall market situation of a product of a group of products or service. It
reflects the market condition of a product or service in terms of its price, demand, supply, volume of
transactions, market structure trend and so on. This type of report is prepared mainly on agricultural
items to help the concern parties. Definition of market report, Meaning of market report, Business
market report discuses below here-

According to Lorenzo, “A market report is an index to business condition prevailing in a

particular market at a specified period or on a fixed day.”

In the opinion of Usunier JC, “Market report contains the business or market scenario of a
commodity sold at a place during a certain time limit.”

Another Scholar quoted as “A market report is the publication of records of business transactions
over a specified period.”

Importance of Market Report in Business Communication

Market report plays an important role in the development of product market of a country. This
type of report is prepared mainly on agricultural items to help the concern parties. It provides
information on demand, supply, and price, and quantity, quality of a product or service in a
particular area or place during a particular time period. The importance of market report can be
discussed through the following points-

 Market Development: It also helps the development of market by supplying necessary

information on the products, customers and market factors.
 Stock Exchange: From market report the investors can know the prices of different shares,
changes in prices of shares and their market trend. Thus, it helps to develop and expand the
stock market of a country.
 Setting Price: The demand and supply of a product determine its price structure and this
information are provided by market report. Thus, market report helps management set
appropriate price of a product or service.
 Taking Future Decision: Market report acts as the mirror of the market situation of a product
and after analyzing the report one can take proper future decision.
 Market Expansion: Market report not only helps to develop the market of a product but also
helps to expand its market. From it, the marketers can take proper decision on creating market
base, product base and demand supply mechanism.
 Speculation of Business: Market report provides information on the future trends of market of
products. This trend helps speculation of future business of any product or service.
 Taking Proper Investment Decision: From the market report of any product an investor can get
different information related to the product or product group and thus take pragmatic
investment decision.

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

 Demand Supply situation of a Product or Service: Market report clearly shows the demand
supply situation of a product. It helps the management to take proper decision in formulating
marketing and other policies.
 Developing International Trade: Market reports also help the development of international
trade as they contain information on export-import items. From its people around the globe can
learn the situation of different products in different countries and can take export-import
decisions which increase the volume of international trade.
 Marketing of Agricultural Products: Market report has immense contribution in the
development and expansion of market of agricultural products, especially in Asian country.
From it, the farmer’s businessmen and the customers can easily get the information on
production, supply, demand, price and prospect of agro products. Thus, it helps in marketing of
agricultural products.
 Publicity of Goods: Market report not only provides information on a product but also helps in
publicizing it among the public. It acts as an indirect media of advertising that helps to promote
a product or service.
 Forecasting International Market: Market reports containing information of international
commodities are of special interest to the exporters and importers from it they can know the
market trend of export and import items and can easily forecast their trend.
 Bringing Equilibrium in Demand and Supply: From market report the producers can know the
actual market scenario of their products. Thus, they can bring equilibrium in the demand and
supply by taking proper steps.

Classification/Types of Market Reports

Market reports cover business activities spread over a specific period of time. Depending upon
the period for which reports are prepared, market reports are classified as under:

 Daily Market Reports

 Weekly Market Reports
 Monthly Market Reports
 Quarterly, Half-yearly and Annual Market Review Reports

Daily Market Reports: These reports are generally telecast, broadcast and published in
newspapers. They indicate the total volume of business transactions, the opening rates,
fluctuations, the highest and lowest rates, and the closing rates of the stocks transacted on the
previous day. Daily Market reports are of great importance for the traders as they help them in
deciding upon their future course of action.
Weekly Market Reports: These reports cover the market activities spread over a period of one
week. They present to the readers a summary of the market activities pertaining to the week
for which they are prepared and published. Like daily reports, the weekly reports also refer to
the fluctuations and ups and downs in the rate and volume of business transactions. In addition
to, these reports also highlight the internal and external factors responsible for setting trend of
the market.
Monthly Market Reports: These reports are published to tell the readers about the overall
business activity carried out during the period of a month. Purpose of these reports is to take a

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

critical view of the prices and demand and supply position of stocks on monthly basis. Monthly
market reports usually discuss technical aspects of the business, including critical evaluation of
the factors that influenced the market activities. They help the individual investors and financial
institutions, both public and private, to make plans for future.
Quarterly, Half-yearly and Annual Market Review Reports: Long term reports, like the
Quarterly, Half-yearly or Annual are, in fact, analytical reports. These reports take an analytical
view of business conditions prevailing during the period for which they are prepared. Purpose
of these reports is to examine critically business policies and to recommend necessary
amendments and changes in the policies, if required. These reports are much more thorough
and comprehensive in their nature and objectives, and are prepared by highly specialized
analysts and experts.

Structure/Parts/Elements/Contents of Market Reports

 Name of the product: The name of the product or group of products on which the report is
prepared should be mentioned in the market report.

                                                       
 Place of Market: The place of the market where the study is conducted must be mentioned in
the report. It helps the reader of the report to compare the market situation of a product with
other market place.
 Date and Time of Preparing the Report: The date and time of preparing the report should be
specifically mentioned in the report. Because the price of commodities may vary from hour to
hour.
 Date of Publication of the Report: Date on which the report is published should be also
mentioned in the market report along its date of preparing.

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

 Volume of Transaction: The transaction volume of the commodity should be mentioned in the
report so that the readers can understand the demand of the product compared to previous
record.
 Nature of Transactions: Market report not only contains the volume of transaction but also
explain the nature of transaction. It clearly states the amount of transactions done in cash and
on credit during the time of the study.
 Price Level: A market report always contains the price level of the product. The purchasing
price, selling price, changes in price, reasons for price variations etc. should be stated in the
report.
 Reasons of Variations in Price: A market report not only contains the price level of the
commodity but also explains the reasons for variations in price.
 Nature of Demand and Supply: Market report contains the nature of demand and supply of the
commodity on which the report is prepared. The demand supply situation of the product is also
analyzed in the report.
 Terms of Delivery: A good market report also contains the terms and conditions of delivery of
goods during the time of the study. It helps the people to take decisions on buying the products
at their convenience.
 Mode of Payment: Mentioning the mode of payment of sales during the period of study is
another important matter of market report. It helps people to determine their payment system
at the time of purchasing.
 Business or Market Trend: Market report analyzed the business or market trend of a
commodity. All the factors determining market or business trend should be clearly examined in
such report.
 Comment of the Reporter: The market report must contain the comment or opinion of the
researcher about the overall market situation of the product.
 Date and Signature of the reporter: At the end of the report, the reporter should put his
signature with date in order to validate it.

From the above discussion it is clear that a market report must contain a lot of things so that it
can be helpful to the readers. In fact, a good market report should include everything relevant
and at the same time exclude everything irrelevant.

Forms of Market Reports

1. Informal Market Report/Short Report
2. Formal Market Report/Long Report

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

(For further understanding see difference

between formal and informal)
1. Informal Market Report/Short Report
Informal reports are typically internal reports, and can go to other members of the department
and department heads. They are also used for reports that will circulate throughout the
company. They use personal pronouns and contractions. Though the report may be several
sections long, it is typically much shorter than a formal report. No contents page is included.
Informal reports can even be formatted like a memo.

2. Formal Market Report/Long Report

If you are writing a report for upper management or for another organization, you will need a
formal report. Formal reports are also used for research papers in higher education. Formal
reports are longer and well researched. Formal reports are impersonal, rarely using personal
pronouns and contractions. Summaries are located on separate pages and usually have more
than one heading. Formal reports may also be preceded by a proposal. Include a contents page
if your report is more than five pages long. A cover letter or memo may be required.

Difference between formal and informal reports

An informal report and a formal report are two major forms of report classification based on the length
and formality of the report. There are certain major differences between formal and informal reports. If
you are well acquainted with these differences, you can quickly adapt your knowledge of report writing
to the wide variety of reports. Significant difference between formal and informal reports stands out as
follows:

Head Short Report Long Report

As the name implies, a short report is very
Length short in length. Short report writing is usually
completed in a page or two.
A long report is never possible to be
completed in a page or two. A long report
usually includes some special pages (e.g.
prefatory page) that do not appear in short
reports.

Subjects of the long report are not routine

Nature A short report deals with the routine matters.
type. It deals with major complex problems.

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

 BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

A short report is usually written for someone

within’ the organization. It is used when the
Reader
reader’ s time is very limited and the full detail
of the subject is not needed.
Many short reports are written in
Format
memorandum and letter formats.
Short reports being informal do not require
Formality extended planning and contain varieties of
formats.
Use of
Supplement A short report does not include prefatory
parts\nor appended once because it presents
only day-to-day events.
A long report is written for someone within
the organization or outside the organization.
A long report is always written in a
manuscript (narrative style) format
A long report being formal needs a careful
planning before it is written because
planning focuses on your reader(s).
A long report includes these special parts. As
long report deals with major complex
problems and it is kept on the file for
posterity, inclusion of the supplements will
increase the reliability and validity of the
report.

Short reports follow deductive writing styles.

A long report on the other hand, after
A short report highlights facts and specific
Writing analyzing and interpreting the draws
recommendations. It avoids analysis and
conclusion and makes recommendations.
inclusion of supporting information.
Personal writing styles (using first- or second-
A formal long report is written using
Style person style) are used in writing a short
impersonal (using third person style) styles.
report.

With the lessening of the length of the report,

the need for coherence aid is lessened. In the
The formal (long) report displays summaries,
extremely short report like memorandums
Coherence introductory, forward-looking sentences,
and letter, reports, the information is
and paragraphs in key places.
presented in a so brief and simple way that
extra coherence aids are not needed.

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)

BCRW MBA/MCS/BBA NICAAS/ILM Colleges Khanpur

Instructor: Naveed Akhtar (Manager-Assistant Communication (Engro Foods Limited)