Marketing Management 3(2+1)

Lesson 04 : Types of Markets

Classification on the basis of nature of commodities

1. Commodity Markets
   • Goods are sold in different markets which may be either production or consumption goods
   • Goods may be direct for consumption by humans or raw materials for industry
   • Commodities are sold by a simple standard known as F. A. Q.(Fair Average Quality).
2. Commodity markets are sub-divided into:
   • Produce Exchanges. Big and well organised markets are found in cities or developed industrial centres
   • Raw produce like cotton, wheat, jute, iron etc come under this category
   • Generally one market deals with one commodity only but the sale of other is not limited.
   • Manufactured Goods Market. Manufactured and semi-manufactured goods are sold in these markets such as cotton, jute, yarn, fiber etc
   • Bullion Market: Markets are concerned with purchase and sale of gold, silver and precious stones.
3. Capital markets
   • Capital market is composed of
   • The Money Market: that includes agencies that provide finance to the business.
   • The Foreign Exchange Market: concern with international market for export and import trade of a country.
   • The stock exchange: This is the market for investments which are purchased and sold in different parts of the country.