Marketing has been defined by the American Marketing Association as “the performance of business activities that direct the flow of goods and services from producer to consumer of user.” Although production f an article is important, it must before its full value can be realised. Thus the economic and faction of consumers’ want

The businessman must first ascertain the potential wants of consumers for goods and services which he can do through market research. He must provide for effective distribution and efforts must be made to bring the goods and services to the notice of the consumers.

Type of Markets

Dictionaries generally describe the market as “the meeting together of people for the purchase and sale of provision or live stock, publicity exposed at a fixed time and place.” According to common usage, it refers to the location where actual purchasing and selling takes place. In this sense, the types of markets can be classified into:-


(a) National Market,

(b) International Market,

(c) Local Market, and

(d) Regional Market.


The Local Market is very limited in scope and covers a small area-generally a town or village. It is important in case of perishable gods like fish and vegetables which have to be sold immediately. The Regional Market is slightly wider in area and covers buyers and sellers of villages or town or districts. In most products, however, wider a distribution network is required which involved at least a National Market where the whole country is considered as a market for the products.

Today with modern development in communication and transport, many business houses think in terms of a World Market or International Market.

Markets are also divided into:-

(a) Wholesale Market and


(b) Retail Market.

The Wholesale market refers to sale by manufacturers in larger quantities to wholesalers comprising the wholesale trade as dealt with in a subsequent chapter. Similarly, Retail Market refers to goods being sold in smaller quantities by retailers to the consumers.

Markets are also divided into:-

(a) Spot and


(b) Futures Market.

In the Sport Market the goods are physically transferred from the purchaser to the seller. In case of the Futures Market, immediate delivery of the goods from the seller to the buyer is not required. The world market is also used in the sense of the demand for a product which can be increased through adequate salesmanship and advertising. In this sense, the larger the demand for the product, the larger the market