There are several types of markets where buyers and sellers can exchange goods and services. Consumer markets involve individuals purchasing items from retailers in physical stores, online, or through mail order/catalogs. Industrial markets consist of businesses buying from other businesses to produce new products. Commodity markets trade primary sector goods like crops and metals, which often come from developing countries. Capital markets allow companies to raise funds through selling stock on the stock market or bonds on bond markets.

1. Types of Market BTEC Business

2. What are Markets? A market is where buyers and sellers: meet to exchange goods and services usually in exchange for money The market may be in one specific place or not exist physically at all

3. An Invisible Market? Markets can exist: over telephone lines online in emails As long as what happens involves buyers and sellers in a business transaction

4. Consumer Markets You should be familiar with these: consumers interact with sellers to buy goods and services sellers can be retailers using high street shops or out-of-town stores sellers can use other sales media

5. New Ideas for Selling to Consumers Alternatives to conventional retailing: Mail order (including catalogue shopping) Online, Web-based selling (‘e-tailing’) Direct producer-to-consumer selling

6. Industrial Markets The business world’s equivalent of consumer markets: business organisations sell to other businesses not to a final consumer these other businesses use what they’ve bought to make new products

7. Commodity Markets Buying and selling products from the primary sector of industry: Use the Biz/ed Glossary to check what ‘primary sector’ means at: http://www.bized.ac.uk/glossary/glossary.htm

8. What’s Traded on Commodity Markets? Goods traded on commodity markets include: coffee cocoa oil precious metals diamonds

9. Rich and Poor? Commodity markets often have their centres in developed countries (UK, USA, Netherlands) The commodities themselves often originate in the developing world (Latin America, sub-Saharan Africa)

10. Impact on Rich and Poor? Commodity market prices can fluctuate wildly: rising prices for oil causes inflation in developed countries which need oil for energy falling prices for coffee, cocoa, copper and so on cause poverty for many in developing world

11. Capital Markets Businesses need capital in order to operate: small firms may borrow or sell shares to family and friends larger companies use the stock market to sell shares this is known as ‘equity’ capital

12. Other Capital Sources Borrowing on the ‘bond’ markets. Used by Leeds Utd FC to finance their ambitions More on this in Biz/ed’s ‘Wanna Argument’ at: http://www.bized.ac.uk/current/argument/arg10-2.htm ‘Derivatives’ markets