A market is a place where buyers and sellers interact. A market is simply a combination of buyers and sellers. These two groups can meet in a physical place (a shop, for example) or can meet across miles, aided by telecommunications (increasingly, the internet). They meet to buy and sell goods or services. The term “Market” is simply a short hand for “any place or situation where two or more people meet to exchange goods or services”. Basically there are four types of markets whose classification is based on the use of the products that these markets offer, the different types of which are listed and explained below:
(1) Consumer markets (2) Business-to-business markets (3) Institutional markets (4) Reseller markets
Consumer markets are those markets where general consumers buy products and services for personal or household use. For example pens, jeans, jewellery, pizza etc. As for business-to-business markets, these markets sell products and services to businesses for running their operations. For instance, office supplies or furniture for office use etc. The third type that is the institutional market includes a wide array of profit and non-profit organizations – these institutional markets provide goods and services for the benefit of the society. Such as markets offering medicines for hospitals or computers for universities could be classified as institutional market. The last type of market is the reseller market that is also called an intermediary. These markets consist of the members of the channels of distribution such as wholesalers, retailers, dealers etc, which are mutually called resellers and operate the reselling markets. Market has been classified on the basis of differences among them.
Markets on the basis of area covered are classified into:
(a) Local markets: The local market is a place for the purchase and sale of different goods within the city. The buyers and sellers of one city assemble to buy and sell. (b) Regional markets: It consists of many cities and districts of a particular area. The buyers and sellers of different villages, cities and districts assemble to buy and sell the different commodities. (c) National markets: It consists of the whole area of country. The buyers and sellers from all over the country take part in buying and selling.d) International markets: It consists of the whole world. The buyers and sellers from the whole world meet and exchange their foods and services. The commodities can be bought and sold at different places in the world.
Keeping in mind the positions of sellers in the market, the markets are categorized as:
(1) Primary market: It is the market where in the farm products are sold by the primary producers to the wholesalers or their agents. (2) Secondary market: It is the market where wholesalers sell goods to the retailers for further selling it to the consumers. (3) Terminal market: It is the market where the purchase is finalized by the consumers from the retailers.
On the basis of volume of business transacted, the markets are classified into:
(1) Wholesale market: As the name indicates it is the market wherein the goods are sold in bulk to the dealers. (2) Retail market: In case of retail market, the goods are sold in a small quantity directly to the consumers.
On the basis of nature of transactions, the market is classified as:
(1) Spot market: The spot market is the cash market. (2) Future market: In this market the purchase or sale of the commodity calls for delivery some months in the future. Actual delivery of goods is rarely made.