Marketing Management 3(2+1)

Lesson 04 : Types of Markets

Other classification

• Perfect Market:
  • When all the potential sellers and buyers are promptly aware of the prices at which transactions take place it is a perfect market.
  • In these markets any buyer can purchase from any seller.
  • Price must be one for any one standardised commodity at a particular time in a market.
• Imperfect Market:
  • A market is imperfect, when some buyers or sellers or both are not aware of the offers being made by others.
  • Seller may charge any price for a commodity for different buyers.
• Organised Markets
  • These are places where business is done under certain rules and regulations formed by such market organization but every type of commodity cannot be ‘handled in an organised market.
  • Some conditions that are necessary for a commodity to be transacted in an organised market are
    • It should not perish quickly.
    • The quantity of each commodity must be expressed by number, weight or measure.
    • Its quality should be determined by test that yields almost identical results, when applied by different officials.
    • The commodity should be important enough to occupy large bodies of buyers and sellers.

The term Regulated Market is a technical one and is used only for those markets where state or local authorities’ interference is present.

Economic Market:

• They may be a local, national and international-limited market by competition.
• Buyer and seller need not be present but there should be free competition, between the buyer and the sellers.