Marketing Management 3(2+1)

Lesson 04 : Types of Markets

Classification on the Basis of Time

On the basis of time markets have been classified as
• Very Short Period Market
  • It is also called market period which sells perishable goods.
  • Markets for fruits and vegetables are generally of very short period nature.
  • No attention is paid to increase or decrease the supplies.
  • Prices are based on the intensity of demand.
• Short Period Markets
  • Consideration is paid for the supply to meet the demand.
  • Sufficient time is not available and so demand stands still.
• Long Period Markets
  • Production can be based on demand as sufficient time is available for supply.
  • Supply governs the demand factor.
  • In the long run, price covers the marginal cost of production.