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types of market

Before delving too deep into the study of marketing, it is worth pausing to consider the different
types of market that exist.
Markets can be analysed via the product itself, or end-consumer, or both. The most common
distinction is between consumer and industrial markets.
Consumer Markets
Consumer markets are the markets for products and services bought by individuals for their own or
family use. Goods bought in consumer markets can be categorised in several ways:
Fast-moving consumer goods (FMCG's)

These
are
high
volume,
low
unit
Examples include: Ready meals; Baked Beans; Newspapers

value,

fast

repurchase

Consumer durables
These have low volume but high unit value. Consumer durables are often further divided into:
White
goods (e.g.
fridge-freezers;
cookers;
dishwashers;
microwaves)
Brown goods (e.g. DVD players; games consoles; personal computers)
Soft
goods
Soft goods are similar to consumer durables, except that they wear out more quickly and
therefore
have
a
shorter
replacement
cycle
Examples include clothes, shoes
Services (e.g. hairdressing, dentists, childcare)
Industrial Markets
Industrial markets involve the sale of goods between businesses. These are goods that are not
aimed directly at consumers. Industrial markets include
Selling finished goods
Examples include office furniture, computer systems
Selling raw materials or components
Examples include steel, coal, gas, timber
Selling services to businesses
Examples include waste disposal, security, accounting & legal services
Industrial markets often require a slightly different marketing strategy and mix. In particular, a
business may have to focus on a relatively small number of potential buyers (e.g. the IT Director
responsible for ordering computer equipment in a multinational group). Whereas consumer
marketing tends to be aimed at the mass market (in some cases, many millions of potential
customers), industrial marketing tends to be focused.

A market is an environment that allows buyers and sellers to trade or


exchange goods, services, and information. These interactions define demand
and supply characteristics and are therefore fundamental to economies.
A market can be defined as a place where any type of trade takes place. Markets are
dependent on two major participants buyers and sellers. Buyers and sellers
typically trade goods, services and/ or information. Historically, markets were
physical meeting places where buyers and sellers gathered together to trade.
Although physical markets are still vital, virtual marketplaces supported by IT
networks such as the internet have become the largest and most liquid.
Some markets are very competitive, with a number of vendors selling the same kinds
of products or services. Conversely, some markets have low or no competition,
particularly if the industry is protected by government legislation.
The number of buyers and sellers involved will have a direct bearing on the price of
the good or service to be sold, and has become known as the law of supply and
demand. Where there are more sellers than buyers, the availability of supply will
push down prices. If there are more buyers than sellers, the increased demand will
push up prices.
Markets can appear spontaneously when there are goods or services to be
exchanged, or they can be planned and regulated.
Free Markets
Free markets operate under laissez-faire conditions, in that the government does
not intervene in how the market operates. These markets may be distorted if a seller
gains monopoly power by managing the majority of supply (or indeed if a buyer
develops monopsony power by managing demand). Governments or trade bodies
often step in when such distortions undermine the smooth functioning of free
markets.
Currency Markets
The currency markets are the largest continuously traded markets in the world.
Twenty four hours a day, seven days a week, governments, banks, investors and
consumers are buying and selling every currency, leading to massive money flows
constantly changing hands.
Stock Markets
Stock markets have become highly complex markets that allow investors
to buy shares in companies or in funds that aggregate companies or industries
together. Most stock markets today are primarily electronic networks, although they
often maintain a physical location for buyers, sellers and market makers to interact
directly.
Types of Consumer Markets

Markets originally started as marketplaces usually in the center of villages and


towns, for the sale or barter of farm produce, clothing and tools. These kinds of
street markets developed into a whole variety of consumer-oriented markets, such
as specialist markets, shopping centers, supermarkets, or even virtual markets such
as eBay.
Commodity Markets
With the rising price of oil and food, commodity markets are once again under the
spotlight. Commodities underpin economic activity. Commodity markets include:
energy (oil, gas, coal and increasingly renewable energy sources such as biodiesel),
soft commodities and grains (wheat, oat, corn, rice, soya beans, coffee, cocoa,
sugar, cotton, frozen orange juice, etc), meat, and financial commodities such as
bonds.
Capital Goods & Industrial Markets
Capital goods markets help businesses to buy durable goods to be used in industrial
and manufacturing processes. A number of services can also be associated with
these goods. Transactions tend to be wholesale with large quantities of goods being
transacted at low prices.
Common prevalance of market types over the world are Finance Market, Money
market,Capital market etc. Find below various types of markets over the world.
Money market generally deals with short term debt securities that mature in less than
a year.Find various instruments used, rates charged and functioning of
world money market.

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