Classification of Markets—Modern:
- Consumer Markets: These markets specialize in selling mass consumer durable and nondurable products and services devote good deal of time in an attempt to establish a superior brand image.
- Business Markets: This is a market of business buyers and sellers. Business buyers buy goods with a view to make or resell a product to others at a profit.
- Global Markets: Global markets consist of buyers and sellers all over the world. ...
- Non-profit and Government Markets: Companies do sell their products and services to non-profit organizations like temples, churches, universities, charitable institutions and to governmental departments at local, state and central level.
How to classify a market?
We can classify markets on various parameters, which include region, time, nature of transaction, regulation, the volume of a business transaction, nature of goods and services, competitive nature, and conditions of demand and supply. This, as I mentioned, is the traditional approach of classification of markets.
What are the different types of markets?
Using area, there can be local, regional, national and international markets. Local markets confine to locality mostly dealing in perishable and semi-perishable goods like fish, flowers, vegetables, eggs, milk, and others.
Why do markets need to be classified on the basis of?
The buyers and sellers behave differently in different markets and influence the prices of products. Therefore, markets need to be classified on the basis of various factors. i. Size:
How do we define markets?
Traditionally, we see markets as a venue where buyers and sellers interact towards buying and selling of goods and services. And as discussed most economists define a market as a place where a group of buyer and sellers meet to transact over a specific product or service. Here is the traditional classification of markets.
What are the 4 types of markets?
The number of suppliers in a market defines the market structure. Economists identify four types of market structures: (1) perfect competition, (2) pure monopoly, (3) monopolistic competition, and (4) oligopoly.
What are the 5 types of markets?
The five major market system types are Perfect Competition, Monopoly, Oligopoly, Monopolistic Competition and Monopsony.Perfect Competition with Infinite Buyers and Sellers. ... Monopoly with One Producer. ... Oligopoly with a Handful of Producers. ... Monopolistic Competition with Numerous Competitors. ... Monopsony with One Buyer.
What are the 3 types of markets?
3 'Types' Of Markets Every Entrepreneur Should Know About New Markets. Existing Markets. Clone Markets.
How many types of markets are there class 7?
There are different kinds of markets namely; weekly market, shops, shopping complex or mall.
How are markets classified?
Markets are also classified on the basis of nature and degree of competition with reference to the number of sellers and buyers and the nature of the product supplied by each seller.
What are the three types of markets?
Markets may be classified into three types on the basis of the area covered—local, national and international. The markets for perishable commodities like fresh vegetables, milk or fish are local in character, as they serve a small area.
What is the market of a single producer and a single buyer?
The market of a single producer and a single buyer, i.e., monopoly in both buying and selling market (e.g., the manufacturing of telephone cables by the Hindustan Cables Factory and the buying of the cables by the Posts and Telegraphs Department of the Government of India) or labour markets where wages are fixed by collective bargaining.
What is differentiated market?
The market of sufficiently large number of firms with differentiated products (e.g., manufacturing of toothpastes, bread, electric bulbs, soaps and detergents, blades, etc. by a large number of firms in different brand-names and trademarks).
What is the market of a large number of buyers and sellers in an identical product?
The market of a large number of buyers and sellers in an identical product (e.g., the market of agricultural and mineral products like paddy, jute, wheat, cotton, fibre, oilseeds, coal, iron ores, etc.) or as found in the stock market or foreign exchange market.
What is a situation in which the number of firms is sufficiently small so that there is natural interdependence among them
A situation in which the number of firms is sufficiently small so that there is natural interdependence among them, and their products (or services) may be identical (e.g., the supply of petrol by a few firms) or differentiated (e.g., manufacturing of motor cars or of baby-food or of sewing machines by a few concerns in different names).
What is a single seller?
The situation of one single seller or one dominant producer in a product or a service which has no close substitutes (e.g., manufacturing of jeeps or of newsprint by a single concern in our country, the Calcutta Electric Supply Corporation, the P & T Department etc.).
What are the two classifications of markets?
Broadly there are two classifications of markets – the product market and the factor market . The factor market refers to the market for the buying and selling of factors of production like land, capital, labor, etc. The other classification of markets are as follows,
What is the market in economics?
In economics, the term market will refer to the market for one commodity or a set of commodities. For example a market for coffee, a market for rice, a market for TV’s, etc. A market is also not restricted to one physical or geographical location. It covers a general wide area and the demand and supply forces of the region.
What is a local market?
Local Markets: In such a market the buyers and sellers are limited to the local region or area. They usually sell perishable goods of daily use since the transport of such goods can be expensive. Regional Markets: These markets cover a wider are than local markets like a district, or a cluster of few smaller states.
What is it called when the government does not allow the trade of goods outside national boundaries?
Or the government may not allow the trade of such goods outside national boundaries. International Market: When the demand for the product is international and the goods are also traded internationally in bulk quantities, we call it an international market.
What is a short period market?
Very Short Period Market: This is when the supply of the goods is fixed, and so it cannot be changed instantaneously. Say for example the market for flowers, vegetables. Fruits etc. The price of goods will depend on demand. Short Period Market: The market is slightly longer than the previous one.
What is a highly regulated market?
This is to ensure there are no unfair trade practices in the market. Such markets may refer to a product or even a group of products. For example, the stock market is a highly regulated market.
Does Amazon have a market?
Did you know that when you shop online you visit a market? Yes, Amazon may only exist in the virtual world without any brick and mortar stores, but it is a market in its own right. So what is a market?
What is the modern classification of the market?
The modern classification of the market is based on the consumer orientation that the consumer is king and a driving force within the market. Economist and marketing experts classify modern markets as consumer markets, business markets, global markers, non-profit and government markets, and e-commerce.
What is consumer market?
Consumer markets involve buying and selling products and services to the end-user, i.e., the common man. It involves the exchange of consumer durable and non-durable goods and services. Companies invest substantial time in establishing in developing distribution networks and brand image.
How have markets evolved over time?
Markets have evolved over time and are further evolving with the advancement of communication, transportation and financial technologies towards enabling buyers and sellers to expand their reach, lower cost and enhancing business across the globe.
Why are global markets so complicated?
Global markets can be complicated due to the difference in demand and supply patterns, consumption patterns and preferences of the consumer.
What is e-commerce?
E-commerce can be referred to as an online market place wherein buyers and sellers can interact and buy and sell their products and services. The entire transaction can happen online without the buyer and seller every directly communicating.
What is market classification?
Classification of Market: Market refers to a system under which buyers and sellers negotiate the price of a product, settle the price, and transact their business. The buyers and sellers behave differently in different markets and influence the prices of products. Therefore, markets need to be classified on the basis of various factors.
What are the three main categories of market structures?
Depending on the degree and type of competition, market structures can be grouped into three main categories, namely, purely competitive market, perfectly competitive market, and imperfectly competitive market.
What is market in economics?
In economic terms, market is defined as a system under which buyers and sellers negotiate the price of a product, settle the price, and transact their business. Moreover, it is not necessary that sellers need to sell their products at a particular place; they can distribute the products round the world.
What is perfectly competitive market?
A perfectly competitive market is a wider term than a purely competitive market. In a perfectly competitive market, a large number of buyers and sellers are involved in the transaction of homogenous products. In this type of market, buyers and sellers are fully aware about the prices of products. Therefore, the market price ...
What are the characteristics of a market?
A market can have a number of interconnected characteristics, including level of competition, number of sellers and buyers, type of products, and barriers to entry and exit. These interlinked characteristics are combined to form a market structure. Among various characteristics of a market, the level and nature of competition contribute ...
What is the definition of mobility of products?
c. Mobility of Products: Affects the market size to a large extent. Generally, a product that can be easily transported to different regions has a large market size. For example, products, such as food grains and clothes, are easily transportable.
What factors affect the size of a market?
Along with the product, there are some other factors that affect the size of market, which are as follows: a. Type of Product: Helps in determining the size of a market. A product that has high portability’ and durability and whose supply varies with time, then the market size of that product would be large.
What are the two types of markets?
Taking volume of business as a basis, there can be two types of markets namely, “Wholesale” and “Retail”. Wholesale markets are featured by large volume business and wholesalers. ADVERTISEMENTS: On the other hand, ‘Retail’ markets are those where quantity bought and sold is on small-scale.
What are the bases of market?
Markets can be classified on different bases of which most common bases are: area, time, transactions, regulation, and volume of business, nature of goods, and nature of competition, demand and supply conditions. This classification is off-shoot of traditional approach. Traditionally, a market was a physical place where buyers ...
What is market economics?
Economists describe a market as a collection buyers and sellers who transact over a particular product or product class. A. On the Basis of Area: Using area, there can be local, regional, national and international markets.
What is the area covered by national markets?
In case of national markets the area covered are national boundaries dealing in durable and non-durable consumer goods, industrial goods, metals, forest products, agricultural produce. In case of world or international market, the movement of goods is widespread throughout the world, making it as a single market.
What does the word "market" mean?
For a layman, the word ‘market’ stands for a place where goods and persons are physically present. For him, ‘market’ is ‘market’ who speaks of ‘fish market’, ‘mutton market’, ‘meat market’, ‘vegetable market’, ‘fruit market’, ‘grain market’. For him, it is a congregation of buyers and sellers to transact a deal. ADVERTISEMENTS:
What is the difference between a seller's market and a buyer's market?
In other words, it is a situation where demand for goods exceeds supply. On the other hand, buyer’s market is one where buyers are in commanding position. That is, supply is exceeding the demand for the goods.
What is marketing in a broader sense?
However, for us as the students of marketing, it means much more. In a broader sense, it is the whole of any region in which buyers and sellers are brought into contact with one another and by means of which the prices of the goods tend to be equalized easily and quickly.
What is market classification?
Markets classification on the basis of nature of transactions: On the basis of nature of transactions, the market is classified into; Spot Market: The spot market is the cash market. The goods in the spot market are physically transferred from the seller to the buyer. Future Market:
What is the definition of market?
Definition of Markets: The word ‘market’ invented from Latin word ‘marcatus’ having a verb ‘mercari’ implying ‘merchandise’ ‘ware traffic’ or ‘a place where business is conducted’. For a layman, the word ‘market’ stands for a place where goods and persons are physically present. For him, ‘market’ is ‘market’ who speaks of ‘fish market’, ...
What is market on the basis of position of sellers?
It is the market where in the farm products are sold by the primary producers to the wholesalers or their agents.
What is a short period market?
Short-period markets are for highly perishable goods (such as fruits, vegetables) of all kinds and long-period markets are for durable goods (such as shoes, cloth) of different varieties may be produced or manufactured.
What does the word "market" mean?
For a layman, the word ‘market’ stands for a place where goods and persons are physically present. For him, ‘market’ is ‘market’ who speaks of ‘fish market’, ‘mutton market’, ‘meat market’, ‘vegetable market’, ‘fruit market’, ‘grain market’. For him, it is a congregation of buyers and sellers to transact a deal.
What is market according to geographical area?
Market according to geographical area: Market on the basis of areas covered is classified into. Local markets: Local markets limit to the area mostly dealing in perishable and semi-perishable foods like fish, flowers, vegetables, eggs, milk, and others. Regional markets: The regional market covers a broader area may be a district, ...
What is terminal market?
Terminal Market: It is the market where the purchase is finalized by the consumers from the retailers. Market on the basis of volume of business Transacted: On the basis of volume of business transacted, the markets are classified into. Wholesale markets:
What is the international market?
International Market. When the demand for goods crosses the boundary of a country, the market is called the international market. Gold, silver, food-grains, and medicines are bought and sold throughout the world. Hence, their market is the international market. 2.
What is the market on the basis of nature of commodity?
On the basis of Nature of Commodity. The market is also classified on the basis of nature of commodity is given below: 1. Product Market. A market where a particular product is bought and sold is called a product market. For example, agricultural products are sold in agricultural markets is a market of this type.
Why do heavyweight goods have a local market?
Heavyweight goods and perishable goods have the local market because their demand is concerned with a particular area or region. For bricks, stones, milk, vegetables, etc. 2. Regional Market. If the buyers and sellers of a commodity are concentrated in a certain region or state, The market is called the regional market.
What is marketing by grades?
Marketing by Grades. When the goods are graded and then different buyers and sellers deal in such goods on the basis of their grades, then the market is called Marketing by grades. Agricultural Products are graded and then they are sold accordingly. Dalda, bath soap, edible oil, etc.
What is perfect market?
1. Perfect market. The market where there is a competition between sellers and buyers and within sellers and within buyers the market is called perfect market or ‘Perfect Competition Market’. Related: 7 Key Features of Perfect Competition Market Structure (Explained).
What is an oligopoly?
Oligopoly. Oligopoly is one of the kinds of Imperfect competition. Such market structure is found when the number of sellers is few. Oligopoly is a market situation in which the number of sellers dealing in a homogeneous or differentiated product in small.
What is the basis of legality?
On the Basis of Legality. 1. On the Basis of Geographical Area or Region. On the basis of area or region a market can be classified into the following categories: 1. Local Market. When buyers and sellers of certain commodities are limited to an area or region then the market is called the local market.
