Types Of Market

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Types Of Market

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Types Of Market

  1. 1. Types of Market BTEC Business
  2. 2. What are Markets? <ul><li>A market is where buyers and sellers: </li></ul><ul><li>meet to exchange goods and services </li></ul><ul><li>usually in exchange for money </li></ul><ul><li>The market may be in one specific place </li></ul><ul><li>or </li></ul><ul><li>not exist physically at all </li></ul>
  3. 3. An Invisible Market? <ul><li>Markets can exist: </li></ul><ul><li>over telephone lines </li></ul><ul><li>online </li></ul><ul><li>in emails </li></ul><ul><li>As long as what happens involves buyers and sellers in a business transaction </li></ul>
  4. 4. Consumer Markets <ul><li>You should be familiar with these: </li></ul><ul><li>consumers interact with sellers to buy goods and services </li></ul><ul><li>sellers can be retailers using high street shops or out-of-town stores </li></ul><ul><li>sellers can use other sales media </li></ul>
  5. 5. New Ideas for Selling to Consumers <ul><li>Alternatives to conventional retailing: </li></ul><ul><li>Mail order (including catalogue shopping) </li></ul><ul><li>Online, Web-based selling (‘e-tailing’) </li></ul><ul><li>Direct producer-to-consumer selling </li></ul>
  6. 6. Industrial Markets <ul><li>The business world’s equivalent of consumer markets: </li></ul><ul><li>business organisations sell to other businesses </li></ul><ul><li>not to a final consumer </li></ul><ul><li>these other businesses use what they’ve bought to make new products </li></ul>
  7. 7. Commodity Markets <ul><li>Buying and selling products from the primary sector of industry: </li></ul><ul><li>Use the Biz/ed Glossary to check what ‘primary sector’ means at: </li></ul><ul><li>http://www.bized.ac.uk/glossary/glossary.htm </li></ul>
  8. 8. What’s Traded on Commodity Markets? <ul><li>Goods traded on commodity markets include: </li></ul><ul><li>coffee </li></ul><ul><li>cocoa </li></ul><ul><li>oil </li></ul><ul><li>precious metals </li></ul><ul><li>diamonds </li></ul>
  9. 9. Rich and Poor? <ul><li>Commodity markets often have their centres in developed countries (UK, USA, Netherlands) </li></ul><ul><li>The commodities themselves often originate in the developing world (Latin America, sub-Saharan Africa) </li></ul>
  10. 10. Impact on Rich and Poor? <ul><li>Commodity market prices can fluctuate wildly: </li></ul><ul><li>rising prices for oil causes inflation in developed countries which need oil for energy </li></ul><ul><li>falling prices for coffee, cocoa, copper and so on cause poverty for many in developing world </li></ul>
  11. 11. Capital Markets <ul><li>Businesses need capital in order to operate: </li></ul><ul><li>small firms may borrow or sell shares to family and friends </li></ul><ul><li>larger companies use the stock market to sell shares </li></ul><ul><li>this is known as ‘equity’ capital </li></ul>
  12. 12. Other Capital Sources <ul><li>Borrowing on the ‘bond’ markets. Used by Leeds Utd FC to finance their ambitions </li></ul><ul><li>More on this in Biz/ed’s ‘Wanna Argument’ at: http://www.bized.ac.uk/current/argument/arg10-2.htm </li></ul><ul><li>‘Derivatives’ markets </li></ul>

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