MARKET CLASIFICATIONS
Any area over which buyers and sellers are in close touch with one another, either directly or
through dealers that the price obtainable in one part affects the price paid in other parts”
No need for building, can be virtual market
Vegetable market, shopping mall e.g. big-bazaar, central mall etc.
Flipkart or Amazon – online market
Criteria for Market Classification
1. Classification by the “area”:
Local:
Regional:
National:
International: pepe jeans
Factors:
1. Nature of commodity vs. taste and preferences of people. Determines usefulness or
uselessness of the commodity for people of area
2. Whether or not commodity transportable easily, cheaply and quickly
3. Commodity is perishable or durable:
4. Storage facility:
5. political stability at home and abroad:
2. Nature of transaction:
Spot market: goods are physically exchanged on the spot
Future market: agreement of future exchange of goods
3. Volume of business:
Wholesale and retail market
4. on the basis of time:
Very short period: fixed in supply-perishable in nature-only changes in demand influence
prices
Short period: supply can increased but to a limited extent- durable goods
Long period: supply can be increased without any limitations- durable goods
5. Status of seller:
Primary
Secondary
Terminal mkt
6. Classification by regulation:
Regulated market: govt. stipulated certain regulations
Unregulated market: transactions are left to the market forces
7. Classification on the basis of market structure:
Sellers
Buyers
Nature of product
Condition of entry and exit
