marketing: meaning and classifications

market

derived from the latin word “marcatus”

marcatus

meaning merchandise, wares, traffic, trade, or a place where business is conducted

marketing

economic process by which goods and services are exchanged between the producers and consumers, value is determined in terms of money price

definition of market

1. place to buy and sell

2. come together for transactions

3. organization thru exchange

4. act of buying ad selling

5. area of operation of commercial demand

classification of market

1. number of commodity

2. area/coverage

3. location

4. time span

5. volume of business

6. nature of transaction

7. degree of competition

8. govt. interventions/regulations

9. nature of commodities

10. visibility/vision

according to number of commodities

1. general market

2. specialized market

general market

all types of commodities are sold from food grains to textile

specialized market

deals with a specific commodities, markets are named after such commodities like vegetable market

on the basis of area covered

1. local market

2. regional market

3. national market

4. international/world market

local market

area covered by the market is limite to some group of villages nearby of close to each other

regional market

area of operation of the market is relatively larger than that of local market, covers 4-5 districts

national market

area of operation of the market covers the entire country, commodities having demand over entire country

international market

commodities are sold in all the nations of the world, area of operation extended over the entire globe

markets according to location

1. village market

2. primary wholesale market

3. terminal market

4. seaboard market

village market

area of operation is confined to small villages or group of villages, regular or occasional in nature

primary wholesale market

located in big towns or taluks or mandal headquarters, agricultural commodities from village markets found here, transaction with producer and traders

secondary wholesale market

located in districts headquarters dealing with major agricultural commodities like rice, pulses, oil seeds, chillies, etc, wholesalers and village traders are main participants

terminal market

located in big cities/state capital/seasports, well organized markets and controlled by the govt., processing and storage actiities are predominant

seaboard market

mainly for export and import of commodities, scientifically standardized and graded comms are transacted

market on the basis of time span

1. short period market

2. long period market

3. secular market

short period market

held for brief period in a day, supply of commodity is fiedd, price variation based on demand in a day, supply is zero elastic

long period market

durable comms can be stored for sometime are transacted in these markets, prices are governed by supply and demand

secular market

permanent market, manufactured and machinery goods are transacted, godown and processing facilities are highly developed, well organized, deals with export and imported trans.

markets on the basis of volume of business

1. wholesale market

2. retail market

wholesale market

large quantities are brought and sold in the market among traders

retail market

sell comm to consumers in very small quantities as per their requirements

market on the basis of nature of transaction

cash market

forward market

cash market

cash transactions in buying and selling of the goods

forward market

market which future sales and purchase of comm take place at the current time, process called as hedging

on the basis of competition

1. perfect competition market

2. imperfect competition market

perfect competition market

said to be a perfectly competitive market when they are many sellers

imperfect competition market

said to be imperfect when products are similar but not identical, prices not uniform, lack of communication, restriction on movement

monopolistic

many sellers

pure obligopoly

few sellers

differentiated oligopoly

few sellerss

monopoly

one seller

monopsony

one buyer but many sellers

oligopsony

only few buyers

bilateral monopoly

single seller faces single buyers

markets on government interventions and regulations

1. regulated market

2. unregulated market

regulated market

statutory market committees govern regulated market and the govt. from time to time

unregulated market

business is conducted without any supervision and absence of rules and regulations

market on basis of nature of commodity

1. commodity market

2. capital market

commodity market

deals with buying and selling of commodity like cattle market, cotton market

capital market

shares, securities and bonds are being purchased and sold

markets on the basis of vision or visibility

1. black market

2. open market

black market (invisible)

goods are not placed in shops but are kept in godowns, short of supply

open market (visible)

visible markets and transaction take place between buyers and sellers