Basic concept of market forecast
To start with, market forecast does not necessarily mean accurate prediction of some sort. It is more like analyzing the market using available data and becoming aware of the developing trends. Market forecast might not be absolutely perfect; however, it helps an organization or an upcoming business in creating an idea or framework around which it can operate. Without a basic structure, it is very difficult to operate in an open market where there will be leading competitors.
Importance of market research at present
It is needless to say that in order to understand the potential market for either a product or commodity, a thorough market research is required. This research may include projections on a particular product, the organizations operating and the enterprises leading in the particular product category. The research also involves data on the industry trend and the open market which can be captured. All of this is essential in today’s world to successfully do business.
Analyzing the potential market
Another basic understanding is about the value of the market. Value of the market does not mean volume. It does not indicate a huge number, rather the focus is on a more realistic volume. For example; A particular product might not be appealing to the entire market, the business might be basis the requirement of only small-scale industries. So, here, the number of small-scale potential business houses are the target market and can be explored. Market forecast tries to find out the potential market based on practical knowledge and market analysis of both already available and collected data.
How market forecast is done
Any market be it product based, or service based will be volatile, especially with the advent of new technologies. Across the globe the consumer or product-based market is becoming highly unpredictable. So, a market research should also consider the changing requirement of the end users in order to create a more sustainable model for business houses. Although market forecast is done based on extensive research by the market analysts, nevertheless there is still a portion of the prediction that happens based on mere assumption. Although a guess work it might sound, yet it can be called an educated guess which can be possible after ages of research and analysis on the field.
Advantages of market forecast
Why do you think, any new ventures or even the existing ones while trying to lay hands on a market segment always tries to analyze the demand and existing supply of the market for that particular segment? Infact it gives an enterprise advantage to judge the initial investment and future maintenance cost. Also, basis the market forecast, organizations can plan their hiring strategies which will then be more efficient and cost saving. Again, market forecast can help in skill specific hiring which can improve the work efficiency two-fold giving organizations boost over their competitors.
Market research can be done both by companies and research partners
This kind of market research and forecast can either be done inhouse or can be outsourced. Few big business houses have their own research and marketing team, who gathers data and analyze market situations for them, while others rely on research partners for getting the job done.
– Kathakali Basu,