Understanding the Market — Entrepreneurship STD 11 Commerce — Question

The basic objective of a market survey is to collect information on various aspects of the business. As it involves gathering, recording and analyzing the data regarding the utility and marketability of the product, its importance can be judged from the following points:-

1. Customer is the King: To know accurately the customer‘s needs/ wants, nature of demand, likes and dislikes and all other related aspects of movement of products from the stage of production to the point where they get consumed, is possible, with the help of appropriately designed survey, which can give an edge over competitions.
2. Risk reduction: The systematic and intelligent use of market survey can reduce/ minimize the risk of decision making under the conditions of uncertainly as results are analyzed in order to finalize a business plan.
3. Helps attaining objectives: As a market survey starts with a customized design created to meet the entrepreneur's and his enterprise's specific needs and strategic objectives, the attainment of goals happen smoothly and timely.
4. Market Overview: A market survey as is a systematic collection, recording, analysis and interpretation of data, relating to the existing or potential market and various forces of the market on the basis of information composed from survey.
5. Forecast: The market survey provides an accurate effective and timely sales forecast and promotes the soundness of marketing decisions which is key for success of any enterprise. “To manage a business well is to manage its future, and to manage its future is to manage information.".
6. Facilitates Decision – Making: A customized market survey is a tool not only to collect an idea about customers, their wants, buying behavior, the new product and its acceptance, the competitors, but also helps in:

1. Short and long term forecasting.
2. Comparative effectiveness studies.
3. Packaging research.
4. Pricing studies.
5. Distribution channel strategies etc.