CONCEPTS OF MARKET & MARKETING

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

5. TRADITIONAL MARKETS
LOCAL MARKET
REGIONAL
MARKET
NATIONAL
MARKET
INTERNATIONAL
MARKET

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.

15. MARKETING CONCEPTS

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.