type of marketing Meaning and definitions of market

 

type of marketing Meaning and definitions of market

In common parlance, 'market' refers to a particular place where buyers and sellers meet to buy and sell goods. This place may be a compound or a house, but the meaning of 'market' in economics is different. In economics, the word market does not mean a particular place, but an area where the tendency of a commodity to prevail in the same price is found throughout the market. In the present scientific age, the buyer can buy and sell the item from the seller in any corner of the world while staying at his home. Therefore, the broad meaning of 'market' is taken in economics. According to this, the presence of buyer and seller is not necessary at any particular place. These people can also establish contact by postal telegram.type of marketing 

According to Benham, “A ‘market’ is any area in which buyers and sellers, whether directly or by shopkeepers, are in such close contact that the prices prevailing in one part of the market affect the prevailing prices in other parts.” 

type of marketing 

Markets are classified on various grounds

 1. Classification of Markets by Region

 type of marketing On the basis of region the market can be mainly divided into four parts.

 (i) Local market -

 Local market means a market which is confined to a small area. The local market is for those goods for which the demand for goods is not wide. Those goods come under the local market which are perishable quickly; For example, milk, curd, vegetables and heavy goods; For example, bricks, stones etc.

(ii) Regional Market 

 The area of ​​regional market is wider than that of local market. Under this, the demand and supply of a commodity has been extended to the extent of a region; For example, lac bangles in Rajasthan.

(iii) National market 

 National market is called that market when the purchase and sale of any commodity is not limited to the boundaries of any place, province or state but is nationwide. For example, the market for sarees in India is national

(iv) International market 

 When a commodity is bought and sold in different parts of the world and its buyers and sellers are spread all over the world, then the market of such commodity is called international market. Examples are gold, silver etc.

2. Classification of Market on the basis of Time Market can be divided into the following four parts on the basis of time

type of marketing

The main effect falls on the demand power. The main commodities of very short term market are milk, curd, vegetables etc.

(i) Very short term market 

 It is also called daily market. In a very short run market, the supply of a commodity is always constant. The producers or suppliers have so little time that they cannot increase the supply of the commodity according to the demand. In such a situation, the main influence in determining the price of the commodity falls on the demand force. The main commodities of very short term market are milk, curd, vegetables etc.

(ii) Short-term market

: In this, the time is available a little longer than the short-term market, its duration can be around six months. Even in the short run market, the effect of demand remains more than supply.

(iii) Long Term Market 

 In this market the time is sufficient so that full adjustment can be made in the production capacity with the demand i.e. the capacity of new plant, plant or existing plants can be increased. The effect of supply is important in these markets. Therefore, the value of the commodity is determined equal to the cost of production.

(iv) Very Long Term Market 

 A market in which there is a lot of change in both demand and supply. In the long run market, the factors affecting demand are changes in fashion, tastes, customs, population etc. On the other hand, the factors affecting the supply of a commodity are scientific research, new inventions etc. In the very long run, the equilibrium action of supply and demand for a commodity continues at the same time. This market is also called the hypothetical market.

3. Classification on the basis of competition

On the basis of competition the market can be divided into three parts.

 (i) Perfect Competition Market 

 When maximum number of buyers and sellers are found in the market for buying and selling of an item, buying and selling of a similar item is done and the buyer and seller have full knowledge of the market. , then the market is called a perfect competition market.

(ii) Imperfect Competition Market 

 In this market the number of buyers and sellers are less, their goods are not in one form and they also do not have complete knowledge of the market. Mainly commodity differentiation is done in this market.

iii) Monopolistic market 

 Monopoly market is said to be the condition in which there is only one producer of the commodity and no substitute producer. Equal price policy or price differential policy is followed in monopolistic market.

Market Characteristics

The salient features of the market can be explained as follows

(1) Whole area 

 Market does not mean any particular place, but the total area in which buyers and sellers are spread.

(2) Buyer and seller 

 both buyer and seller are necessary parts of the market, because without any one, exchange work will not be possible and without exchange work how is the market?

(3) A special kind of commodity

 It is necessary for the market to have a particular commodity, in which buying and selling is done. As many commodities as there are markets, such as Lipton tea and Book Bond tea will have separate markets.

(4) Competition 

 There should be free competition between buyers and sellers in the market. The buyer would like to buy the item at a lower price and the seller would like to sell it at a higher price. There should be no restriction or pressure at the time of this transaction.

(5) For a price market,

 the price of the same commodity in its different parts must be equal, remember that perfect competition cannot be considered as an essential element of the market, because nowadays imperfect competition is the prevailing situation, not perfect competition.

Factors or elements influencing the expansion of the market

If the buyers and sellers of a commodity are spread over a very large area, then its market will be called 'wide' and if it is spread over a small area then it will be called narrow. Some commodities like wheat, gold etc. have a market all over the world whereas other commodities like bricks are marketed in a particular place where they are produced. Two types of factors affect the expansion of the market. A brief description of these factors is given below.

(a) Internal conditions of the country

 The internal conditions of each country also affect the expansion of the market. The following factors are included in this category

(1) Peace and Security 

 When there is peace and security in the country, traders have certainty and they do business fearlessly from far and wide, but during war, the movement of goods usually stops.

(2) Advancement in the means of transport and communication 

 If rail, motor, aircraft etc. have developed in the country and if the means of asking and sending news are available by post, telegram, etc., then to settle the deals of goods from far and wide. And as a result of shipping and shipping, the expansion of the market increases. Markets are small in underdeveloped countries due to lack of progress.

 (3)Money and Banking System 

 If there is no fluctuation in the value of currency in the country and the bank system is well developed, then all the merchants increase their relationship with that country, because they do not have difficulty in taking payments and getting profit according to the calculations. So the markets are wide.

(4) Scientific methods of business 

 If scientific methods (eg, scientific, advertising, placing goods in exhibitions etc.) are adopted for business, then the market will be wide otherwise small.

(5) Policy of the government 

 From time to time, the government keeps on making changes in the import-export policy, due to which it becomes difficult (or easy) to import some goods and export of some goods also becomes difficult (or easy). . It is clear that the markets of goods of difficulty remain narrow whereas the markets of goods of ease get widened. For example, cottage goods become increasingly marketed as the government provides many facilities for their export.

 

(b) characteristics of things

The personal characteristics of a particular commodity also have an effect on the expansion of its market, these characteristics are as follows

1) Universal demand for a commodity 

 The wider the demand for a commodity, the wider will be its market. For example, wheat is in demand all over the world. So its market is international, but the demand for Gandhi caps is limited to India only. Hence its market is national.

(2) Affordability 

 The commodity which is more affordable has a wider market; For example, the market of clothes, but the commodity which is less affordable, its market remains narrow; Like a brick market.

(3) Durability

 Fresh fish, vegetables and fruits, etc., which are perishable or perishable, have a narrow market, but coal, steel, cloth, etc., which are durable, have a wide market. Due to the development of cold storage facilities, now the market of perishable goods has started getting bigger, because it has become possible to keep them safe for a longer time by keeping them in a cool place.

(4) Adequacy of supply 

 If the production can be increased when the demand for the commodity increases, then its market will be wide and if a large quantity of production is not possible (like artifacts) then the market will remain narrow.

(5) Procurement of substitute goods 

 If one commodity (such as tea) is readily available in place of another commodity (such as coffee) then its market will be narrow and if it is not readily available then the market will be wide. , because then the sellers will have to take the same thing under compulsion.

(6) Availability of Complementary Goods-

 Some goods complement each other, such as motor and petrol. Therefore, in such a situation, petrol should be available in sufficient quantity to expand the market of the motor.

7) Fashion of the commodity 

The market of tea is expanding due to the increase in the fashion of drinking tea, but due to the end of the fashion of the cap, its market has become narrow.

What is Product Labelling & what is the Importance of labelling?

Factors affecting the expansion of the market,

1. Transportation and communication system:

 To move goods from one place to another, there is a dire need of advanced means of transport, where rail, road, water, means of transport are proper, there the area of ​​the market of the commodity will be wide. The communication system also has a big impact on the market sector. Proper arrangement of postal, telegraph, telephone etc. widens the scope of business. With the help of wire and telephone, the merchants of Agra can establish business relations with the merchants of Kolkata, Chennai, Mumbai sitting at home and buy and sell goods and send them to the railways. Can demand from motor, handcart etc.

2. Peace and order in the country

 If there is peace and security in the country, then people do not have any threat to their lives and property. Merchant people carry their goods from one place to another without any kind of fear.

3. Honesty and development of people

 In the present era, most of the business is done on the basis of credit. For this, it is necessary to have qualities like honesty, trust in the businessman. If the merchants are honest, truthful, firm, then the credit and cash purchase and sale of goods will happen on a large scale. On the contrary, if the business class is dishonest and liar, then other traders will not want to do business with them. Hence, the market area will be very narrow.

4. Demand for the commodity

– The greater the demand for the commodity, the larger the size of the market; Such as the market of machines, gold and silver jewelery and ready-made garments. These goods are demanded not only within the borders of the country but also abroad. Therefore, the market of these goods is wide not only at the national level but also at the international level. On the contrary, the market of green vegetables or sweets is limited to country-specific and state-specific, because their demand is not wide at the international level.