TOPICS TO BE COVERED:

Meaning of market-definition and classification of markets

Marketing- features-object-importance, Modern marketing, Marketing concepts.
Marketing Mix- meaning, definition, elements, problems
Marketing functions, Marketing environment.

MARKET
“A market is a centre about which or an area in which the forces leading to exchange of
title to a particular product operate and towards which the actual goods tend to
travel.” - Clark and Clark
In simple words, Market is a means by which the exchange of goods and services takes
place as a result of buyers and sellers being in contact with one another, either directly or
indirectly through mediating agents, platforms, systems or institutions.
It is an arrangement where buyers and sellers come in direct or indirect contact to sell/buy
goods and services.

CLASSIFICATION OF MARKET
Markets can be classified on the basis of different approaches:
1. On the Basis of Geographical Area:
i. Family Market: When exchanges are confined within a family or close
members of a family, such a market is called a family market.
ii. Local Market: When exchanges of goods and services are confined to a local
area or areas, say a town or village, it is called a local market. The demands of
this kind of market are limited. Perishable goods like fruits, vegetables, fish, etc.
are bought and sold in this kind of markets.
iii. National Market: For certain types of products and services, a country may be
regarded as a market when such product or service is demanded and supplied
throughout the nation. Rapid industrialisation has made it possible for goods of
one corner of the country to reach another corner. In the present decade, almost
all the products have national markets as the markets have widened to a great
extent.
iv. World Market: Involvement of buyers and sellers beyond the boundaries of a
nation constitute a world market.

2. On the Basis of Commodity Market:

i. Produce Exchange Market: This type of market is found only in developed
industrial centres or cities. One market deals in one commodity only. Generally,
sellers and buyers of a particular commodity set up such markets and run them
 regulated and controlled by certain rules. E.g. Wheat Exchange Market of Hapur,
the Cotton Exchange Market of Bombay, etc.
ii. Manufactured Goods Market: Such type of market deals with manufactured
goods. Manufactured Goods are those goods which are made from raw materials
with the help of workers and machinery. Example of manufactured goods are:
electrical equipments, leather, textiles/clothing, etc. Example of Manufactured
Goods market are Leather Exchange Market at Kanpur, Piece Goods Exchange
Market at Bombay, etc.
iii. Bullion Market: This type of market deals with purchase or sell of precious metals
like gold or silver. E.g., Bullion Markets of Bombay, Calcutta, Kanpur, etc.

3. On the Basis of Economics:

i. Perfect Market: A market is said to be perfect market if it satisfies the following
conditions:
 Large number of buyers and sellers are there.
 Products offered are homogenous.
 Prices should be uniform throughout the market.
 Buyers and sellers have perfect knowledge of the market.
 Goods can be moved from one place to another without restrictions.
 There are no barriers to entry into and exit from the market.
It should be remembered that such types of market are rarely found.
ii. Imperfect Market: A market is said to be imperfect when:
 Products are not homogenous.
 Prices are not uniform.
 There are restrictions on movement of goods.
 There are barriers to entry into and exit from the market.
 There is lack of communications.

4. On the Basis of Time:

i. Daily/Very Short Period Market: In daily or short period market the supply of
goods in almost stable. Because the supply of goods is stable, therefore the price of
goods is determined according to the demand of the goods. If the demand
diminishes the price will fall and vice-versa. E.g., mostly perishable goods like
fruits, vegetables
ii. Short Period Market:  The market is slightly longer than the previous one. Here
the supply can be slightly adjusted to meet the demand. The demand is greater than
supply.
iii. Long Period Market: Here the supply can be changed easily by scaling
production. So it can change according to the demand of the market. So the market
will determine its equilibrium price in time. E.g. Market for durable goods like
household goods, sports equipment, etc.
5. On the Basis of Volume:
i. Wholesale Market: In wholesale market goods are supplied in bulk quantities to
dealers.
ii. Retail Market: In retail market goods are sold in small quantities directly to the
users or consumer. The consumer gets the good for consumption and not for profit
making.

6. On the Basis of Importance:

i. Primary Market: The primary producers of farm produce sell their output or
products through this type of markets to wholesalers or consumers. Such markets
can be found in villages and mostly the products arrive from villages.
ii. Secondary Market: The commodities arrive from other markets. The dealings are
commonly between wholesalers or between wholesalers and retailers.
iii. Tertiary Market: The ultimate consumer gets the goods from such markets. Here
the final disposal of goods takes place.
 Importance
of Marketing

To the
society

To individual
firms
FEATURES OF MODERN MARKETING
FACTORS INFLUENCING MARKETING CONCEPT

There are several factors responsible for the thought of “the modern concept of marketing.”
A firm operating under the concept, receives direction from the market i.e., information
regarding the customer’s wants, needs and desires through market.
All the factors mentioned above changed the traditional thinking of business managers and
have dragged the producers to change their idea of marketing to the modern concept of
marketing.