CHAPTER-13, CLASS XII
- 1. CONCEPTS OF MARKETS 1. PLACE: Market is a place, where products and services are sold or exchanged
- 2. 2. AREA: Market means geographical area in which products and services are sold or exchanged. 3. DEMAND Market refers to the aggregate demand for a product or service.
- 3. 4. PEOPLE: Market consists of buyers and sellers, and middlemen who assist in buying and selling.
- 4. MARKET TRADITIONAL VOLUME SUBJECT OF EXCHANGE POSITION OF BUYERS & SELLERS NATURE OF TRANSACTIONS NATURE OF GOODS
- 6. VOLUME OF BUSINESS WHOLESALE RETAIL
- 7. SUBJECT OF EXCHANGE COMMODITY MARKET CAPITAL MARKET MONEY MARKET
- 8. COMMODITY MARKET: Organized market, where commodities are bought and sold according to prescribed rules and regulations. CAPITAL MARKET: Specialized market for providing long term finance to business enterprises. Specialized financial institutions, stock exchanges, investment trusts, etc.
- 9. MONEY MARKET: Specialized market for providing short term finance to business enterprises. Banks.
- 10. POSITION OF BUYERS & SELLERS PRIMARY MARKET SECONDARY MARKET TERMINAL MARKET
- 11. PRIMARY MARKET: Primary producers sell their agricultural products to the wholesalers or their agents. SECONDARY MARKET: Wholesalers sell their products to retailers. TERMINAL MARKET: Retailers sell their goods to consumers.
- 12. NATURE OF TRANSACTIONS SPOT MARKET FUTURE MARKET
- 13. SPOT MARKET: Goods are physically transferred from sellers to buyers. FUTURE MARKETS: Buyers and sellers enter into future contracts without the intention of actual delivery of goods. To make profit out of fluctuations in prices.
- 14. NATURE OF GOODS CONSUMERS ‘ MARKET Goods purchased for final consumption. PRODUCERS’ MARKET Goods purchased for use in further production.
- 16. TRADITIONAL CONCEPT: Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers or users. Marketing begins after the goods are produced and comes to an end with their sale. Emphasis on physical process of distributing goods and services. Focus is on the product rather than on satisfaction of customers.
- 17. PRODUCTION ORIENTED CONCEPT: Consumers will prefer products that are widely available and inexpensive. Consumers are primarily interested in product availability and low prices. Emphasis on high production efficiency, low costs and mass distribution.