|Market is the English word. It was derived from the Latin word ‘Marcatus’. In Latin, its meaning is ‘buying and selling place’. If it is defined with this meaning, market means a place where selling and buying goods or services is done. But this definition is narrow. This view cannot define the word ‘market’ in a broad term the word ‘market’ does not mean only the place of selling and buying goods or|
|Concepts of Market|
1. Place concept
2. Commodity concept
3. Area concept
4. Demand concept
5. Exchange concept
|The Market or Exchange|
6. Space concept
Features of Market
3. Buyers and sellers
Types of Market
1. On the basis of geographical area
- Local market: If goods or services are sold and bought in small area, it is called local market. In such market, the sellers and buyers perform exchanges mostly with direct contact. The markets of perishable goods like fruits, fish, vegetables, milk etc. are local markets. It has also become possible to expand markets of perishable goods to regional and national levels due to development of fast means of transport and cold stores.
- Regional market: The market which occupies a large area compared to local market is called regional market. Suppose, market of some goods or services has covered only the central region, such market is called regional market. For example, Shree Distillery has been supplying its products in plastic bags in only the Central Development Region of Nepal. So, the market of Shree Distillery is regional market.
- National market: National market is also called domestic market. If the market of goods or services has expanded nationwide, such market is called national market. Nationwide selling and buying of goods or services takes place in national market. Nebico Biscuit, Wai-Wai Noodles, Mechi Tea etc. are bought and sold all over Nepal. So, the market of these goods is called national market.
- World market: World market is also called international market. Such market covers the whole world. If goods or services are sold and bought all over the world, it is called world or international market. Toyota, Fait, Gulf Oil etc. have covered the world. They are sold and bought all around the world. So, it is an international market.
2. On the basis of time
- Very short market: The market where supply of goods or services is stable is called very short market. In such market, even a very little time cannot be found to increase volume of goods or services according to the increase of demand. Or supply cannot be increased. Mostly, market of perishable goods becomes very short. For example, the market of fruits, vegetables, mushroom, fish, meat, milk etc. become very short. Generally, demand affects price in such market. If demand increases, price goes high and if demand decreases price comes down.
- Short period market: Short period market remains longer than very short time market, during which supply volume can be increased to meet the demand through maximum mobilization and utilization of machineries, means and resources. But resources, means and machineries cannot be added. In such market also demand of goods affects price.
- Long period market: A lot of time can be found to increase volume of goods according to demands in such market. Production of goods or services can be increased by adding machineries, resources and means. Goods or services can be supplied to meet demands whatever greater it may be. So, in such market price is fixed according to rule of demand and supply. But in this market, new wants and needs of customers cannot be satisfied by adding new technology.
- Very long period market: In a very long period market, any firm or company gets a long time that within which it can produce a lot of goods or services according to the interest, fashion, needs and wants of the customers. The firm studies and researches markets, identifies demands, develops new technology and supplies its products to the markets.
3. On the basis of volume of business
- Wholesale market: The place where sellers buy goods from producers and sell them to retailers is called wholesale market. In wholesale market, a large amount of goods are dealt in. as little amount of goods is not sold in wholesale market, goods are not sold to the ultimate consumers. The wholesale price of goods becomes less than retail price.
- Retail market: The market in which sellers buy goods from wholesalers and sell them in little amount to ultimate consumers is called retail market. In other words, the function of the retailer is retail market. In such market, the retailers have direct contact with consumers.
4. On the basis of control
- Regulated market: The market controlled by rules and regulations by Trade association and government over the production, quality, features, marketing, price etc. of goods or services is called regulated market. In such market, the quality of goods becomes high, no immoral activities are done and the price becomes reasonable. So, such market is taken as reasonable and fair market. The uncontrolled tendency and immorality cannot spread in such market.
- Unregulated market: The market where the government and trade association have no control is called unregulated market. In such market, firms or companies become free to fix quality, features price, marketing of their goods or services. Generally, price is fixed on the basis of the law of demand and supply. Quality of goods and features depends on competition.
5. On the basis of delivery
- Spot market: The market where delivery of goods and payment takes place immediately after agreement between seller and buyer is called spot market. In such market selling, buying and paying price take place at a time.
- Future market: If an agreement or contract is signed at present for selling and buying any goods or services at any certain time in future, such market is called future market. Payment of price and delivery of goods take place in future in such market. Conditions of payment of price, discount, commission, delivery etc. are fixed in the agreement or contract.
6. On the basis of competition
- Perfect market: The market where a large number of sellers and buyers throng in, same types of goods are found in large quantity and price is fixed on the basis of interactions of demands and supply is called perfect market. In such market, there should be freedom of entrance and abdication for business firm. The buyers and sellers should have knowledge about goods or services. Generally perfect market cannot be found in practice.
- Imperfect market: The imperfect market is the market which is neither perfect nor monopoly market. It is middle way market. It has neither the features of monopoly market nor perfect market. The sellers and buyers may or may not have complete knowledge about goods or services. Different types of goods can be found in such market. Same types of goods or services may be sold at different prices and different customers at same place/shops. Generally, such markets are found in practice.
- Monopoly market: The market where there is full control on supply of goods or services is called monopoly market. In monopoly market there remains only one producer and price is fixed by the producer himself. The price is not fixed on the basis of demand and supply in such market. The examples of monopoly market are electricity, drinking water, fuel/petroleum, rail transport, etc. in Nepal.
7. On the basis of nature of products
- Commodity market: The market where selling and buying of customer and industrial goods takes place is called commodity market. For example: the market of fruit, food stuffs, machineries, different equipment, furniture etc. is commodity market.
- Financial market: The market of money and financial equipment is called financial market. In this market, money, share, debenture, treasury bill, commercial paper etc. are dealt. The dealing of short term fund is called money market and dealing of long term fund is called capital market.