Why is market information important?
Market knowledge is a crucial marketing function that ensures the marketing system runs smoothly and efficiently. Promoting intelligence that is accurate, adequate, and timely is helpful in deciding when and where to market products. Market information fosters competition and prevents the emergence of monopolies or profiteering by individuals. It is a market’s lifeblood.
Everyone involved in product creation, as well as the purchasing and selling of items, requires market knowledge on a regular basis. This is especially true in the case of agricultural products, as their prices fluctuate more than those of other industries. Market intelligence is critical for the government, for the efficient operation of the marketing industry, and for the security of all parties involved. It is necessary at all phases of the marketing process, from the selling of products at the farm to the delivery of commodities to the final consumer.
A communication or reception of knowledge or intelligence might be widely characterized as market information. It encompasses all facts, estimates, opinions, and other data that influence the marketing of goods and services.
Market data is beneficial to all members of society who are interested in marketing. Its significance can be assessed from the perspective of various groups. These are the groups:
Market information aids in the farmer’s decision-making process. A farmer must select when, where, and how he will sell his produce and purchase his inputs. Price data aids him in making these selections.
b) Market Middlemen:
Market intermediaries require market data in order to organize purchases, storage, and sales of items. They can determine the market’s pulse, or whether it is active or sluggish, as well as the market’s temperature (whether prices are rising or declining) and market pressure, using this data (whether the supply is adequate, scarce, or abundant). They project their estimates and make judgments based on this fact, such as whether to sell immediately or store products for a while, whether to sell into the local market or go for import or export, whether to sell in their original state or process them and then sell and so on. The non-availability of market information, or its inadequate availability and interpretation, may play a role in a company’s failure. Market information is used by cooperative marketing organizations that act as commission agents to advise their members on when to sell their products. Processors utilize market data to plan their purchases in order to keep their plants running smoothly and profitably.
c) General Economy:
Market data is also advantageous to the economy as a whole. In a developed economy, a competitive market mechanism for a commodity is required to regulate the product’s prices. The competitive process contributes to the industry’s operating efficiency. A perfectly competitive system, on the other hand, is difficult to achieve; yet, the availability of market information leads to a competitive environment. Different rates will prevail if this system is not in place, leading to profiteering by specialized agencies. Forward trading is a business that relies on the availability of market data.
Market data is critical for the government to develop agricultural policies such as market regulation, buffer stocking, import-export, and administered prices.
Types of Market Information:
There are two types of market Information. These are given below:
a) Market Intelligence:
This provides data on past prices and market arrivals over time, among other things. These are essentially a record of what has occurred previously. As a result, market intelligence is of a historical nature. An examination of the past aids us in making future decisions.
b) Market News:
This word refers to the most up-to-date information on prices, arrivals, and market circumstances. This information assists the farmer in determining when and where to sell his produce. A trader who receives market news early might sometimes earn a significant advantage over his peers who hear it later. Market news quickly gets outdated, necessitating frequent updates.
Criteria for Good Market Information:
In order to be of maximum benefit to users, good market information must meet the following criteria:
Complete and thorough market data is required. All agricultural goods and varieties, as well as all geographical regions, must be covered. Prices, output, supply fluctuations, stockpiles, and demand circumstances must all be covered.
It is critical that market data be accurate. Under changing market conditions, gathering correct market data is a time-consuming and costly operation. The information must be collected in an honest manner. Efforts should be made to improve its correctness on a regular basis. In order to collect accurate information about the market and the product, the information reporter must be well-versed in both.
Market data must be relevant in the sense that it must be gathered, organized, and disseminated with the user’s best interests in mind.
In general, much of the data obtained is never utilized, resulting in a massive waste of time and resources. It is not sufficient to just collect a large amount of data and disseminate it through numerous mediums; the information must be accurate and helpful.
The firms for whom the information has been obtained must have a sense of secrecy. The information revealed in this scenario of secrecy will be more accurate and may aid in the formulation of policy implications. The names of companies should not be made public.
Another prerequisite for effective market data is trustworthiness. The agency that collects it must instill trust in the users, and the users must trust the organization that is providing them with this information.
f) Equal and Easy Accessibility:
Everyone involved in marketing, whether large or little, wholesalers or retailers, government or private agencies, needs equal and easy access to the information provided. Individuals’ usage of this data should not be restricted in any way.
Market data must be made available in a timely manner. A quick transmission is required for this purpose. Market information that is disseminated late is useless. This knowledge frequently goes stale, especially when it is distributed too late to be useful. A technique for rapid information dissemination should be established.
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