Types Of Market

Types Of Market

1. Types of Market
BTEC Business

2. What are Markets?
A market is where buyers and sellers:
•meet to exchange goods and services
•usually in exchange for money
The market may be in one specific place
or
not exist physically at all

3. An Invisible Market?
Markets can exist:
• over telephone lines
• online
• in emails
As long as what happens involves
buyers and sellers in a business
transaction

4. Consumer Markets
You should be familiar with these:
•consumers interact with sellers to
buy goods and services
•sellers can be retailers using high
street shops or out-of-town stores
•sellers can use other sales media

5. New Ideas for Selling to
Consumers
Alternatives to conventional
retailing:
•Mail order (including catalogue
shopping)
•Online, Web-based selling (‘e-
tailing’)
•Direct producer-to-consumer
selling

6. Industrial Markets
The business world’s equivalent of
consumer markets:
•business organisations sell to other
businesses
•not to a final consumer
•these other businesses use what
they’ve bought to make new
products

7. Commodity Markets
Buying and selling products from
the primary sector of industry:
Use the Biz/ed Glossary to check
what ‘primary sector’ means at:
http://www.bized.ac.uk/glossary/glossary.htm

8. What’s Traded on Commodity
Markets?
Goods traded on commodity
markets include:
•coffee
•cocoa
•oil
•precious metals
•diamonds

9. Rich and Poor?
Commodity markets often have
their centres in developed
countries (UK, USA, Netherlands)
The commodities themselves often
originate in the developing world
(Latin America, sub-Saharan
Africa)

10. Impact on Rich and Poor?
Commodity market prices can
fluctuate wildly:
•rising prices for oil causes inflation
in developed countries which need
oil for energy
•falling prices for coffee, cocoa,
copper and so on cause poverty for
many in developing world

11. Capital Markets
Businesses need capital in order to
operate:
•small firms may borrow or sell
shares to family and friends
•larger companies use the stock
market to sell shares
•this is known as ‘equity’ capital

12. Other Capital Sources
•Borrowing on the ‘bond’ markets.
Used by Leeds Utd FC to finance
their ambitions
•More on this in Biz/ed’s ‘Wanna
Argument’ at:
http://www.bized.ac.uk/current/argument/arg
10-2.htm
•‘Derivatives’ markets