This document defines key concepts related to markets and agricultural marketing. It discusses what a market is, the components and dimensions of markets, and provides examples of different types of markets based on location, area, time span, transactions, and other factors. Agricultural marketing is defined as activities involved in supplying farm inputs and moving agricultural products from farms to consumers. The importance of agricultural marketing is also outlined, including optimizing resource use, increasing farm income, widening markets, and creating different utilities for consumers.

1. Agricultural Marketing:
Concepts and definitions of
market, marketing,
agricultural marketing
Lec 1

2. MARKET
• Latin word – ‘Marcatus’ – means
Merchandise or ‘Trade’ or a place
where business is conducted.
• Market means a social institution
which performs activities and provides
facilities for exchanging commodities
between buyers and sellers.

3. MARKETING
• Marketing is the performance or operation of various
business activities, which direct the goods and services from
the producers to the ultimate consumers.
• Marketing is the economic process by which goods and
services are exchanged between the producers and the
consumers and their value determined in terms of money
prices.

4. COMPONENTS OF A MARKET
• The existence of a good or commodity
for transactions (however physical
existence is not necessary)
• The existence of buyers and sellers
• Business relationship between buyers
and sellers and
• Demarcation of area.

5. DIMENSION OF A MARKET
• Location or place of operation
• Area or coverage
• Time span
• Volume of transaction
• Nature of transaction
• Number of commodities
• Degree of competition
• Nature of commodities
• Stage of marketing
• Extent of public intervention
• Type of population served
• On the basis of market
functionaries and accrual of
marketing margins and
• On the basis of vision

6. ON THE BASIS OF LOCATION OR PLACE OF OPERATION
Village market Primary market Secondary
wholesale market

7. ON THE BASIS OF LOCATION OR PLACE OF OPERATION
Terminal market Modern terminal
market
Sea board market

8. ON THE BASIS OF AREA/ COVERAGE
Local markets Regional market

9. ON THE BASIS OF AREA/ COVERAGE
National markets International market

10. ON THE BASIS OF TIME SPAN
Short period market
Periodic market
Long period market
Secular market

11. ON THE BASIS OF VOLUME OF TRANSACTIONS
Wholesale markets Retail market

12. ON THE BASIS OF NATURE OF TRANSACTIONS
Spot or cash markets Forward market

13. ON THE BASIS OF NUMBER OF COMMODITES IN WHICH
TRANSACTION TAKES PLACE
General markets Specialized market

14. ON THE BASIS OF DEGREE OF COMPETITON
• Perfect market
• Imperfect market
1. Monopoly market
2. Duopoly market
3. Oligopoly market
4. Monopolistic competitive market

15. ON THE BASIS OF NATURE OF COMMODITIES
Commodity markets Capital market
Share market

16. ON THE BASIS OF STAGE OF MARKETING
Producing markets Consuming market

17. ON THE BASIS OF GOVERNMENT INTERVENTION &
REGULATION
Regulated markets Unregulated market

18. ON THE BASIS OF TYPE OF POPULATION SERVED
Urban markets Rural market

19. ON THE BASIS OF VISION
Black market or invisible
market
Open market or visible
market

20. ON THE BASIS OF MARKET FUNCTIONARIES AND ACCURAL
OF MARKETING MARGINS
Farmers market Co-operative
market
General market

21. AGRICULTURAL MARKETING
• Two words – Agriculture and Marketing.
• Agricultural Marketing is defined as comprising of all
activities involved in supply of farm inputs to the farmers
and movement of agricultural products from the farms to
the ultimate consumers.
• Agricultural Marketing included both output (product)
marketing and input (factor) marketing

22. IMPORTANCE OF AGRICULTURAL MARKETING
• Optimization of Resource use
and Output Management
• Increase in Farm Income
• Widening of Markets
• Growth of Agro-based
Industries
• Price Signals
• Adoption and Spread of New
Technology
• Employment
• Better Living
• Creation of Utility
1. Time Utility
2. Place Utility
3. Form Utility
4. Possession Utility