Q. What are the kinds of market or classification of markets? (a).

Division of market on the basis of area

On the basis of area, the market may be classified into these four types: i. Local market ii. National market iii. International market

1. Local market
The market for the sale and purchase of goods and services for the people of the same city or town is known as local market. For example, the grain market, fruit and vegetable market, timber market or mutton market of ant city or town.

2. National market
The national market may consist of the whole area of the country. In national market, the people all over the country can enter into contracts for the sale and purchase of their desired goods and services by following the rules and regulation of the country.

3. International market
International market is a place where the people of different countries meet for the sale and purchase of goods and services for a price. The trade which is done in between the people of two or more countries is known as international trade.

(b) Division on the basis of users:

From the point of user market may be divided into two types: i. Consumers market ii. Industrial market

1. Consumers market
The consumer market is a market which consists of the buyers who are the individuals, families and house hold consumers. Here such goods and services are sold which are used directly by the consumers. These goods are known as consumers good like flour, wheat, milk, meat, soaps etc.

2. Industrial market
The industrial market is a market which consists of the buyers who are industrial consumers. They do not buy goods and services for personal use but for reprocessing and resale purposes. Here the goods sold may be raw material and finished goods.

(c) Division on the basis of time

On the basis of time the market may be divided into two types: i. Temporary market ii. Permanent market

1. Temporary market
The market which is not of permanent nature but is established for a short time on temporary basis is known as temporary market. The Sunday bazar, Eid bazaar, any type of industrial exhibition etc are common example of temporary market.

2. Permanent market
The permanent market is a market which is established for a longer period of time on permanent basis, for example Urdu bazar, Liberty market or Anarkali bazar etc.

(d) Division on the basis of size (Volume)

On the basis of the size of transaction, the market may be divided into these two types: i. Whole sale market ii. Retail market

1. Whole sale market

The whole sale market is one where the buyers purchase goods in bulk on whole sale price. The wholesalers purchase the goods from the producers and dell them to retailers and wok as middle men between manufacturers and retailers.

2. Retail market
Market is one where goods are sold to the household consumers in small quantities at retail prices. The retailers works as middlemen between the wholesalers and consumers of the goods.

(e) Division on the basis of transfer

On the basis of transfer of goods, the market is also divided into these two types: i. Spot market ii. Future market

1. Spot market
The market where the goods are psychically available and it is transferred from the seller to buyer at the same time (spot) when parties enter into a contact of sale is known as spot marker. All necessities of life are often sold at spot market.

2. Future market
The future market is a market where goods are not ready at the time of contract of sale and it is transferred from the seller to the buyer at some future date, such market will be known as future market.

(f) Division by channel of distribution or by position of seller

On the basis of channels of distribution or on the position of seller, the market is divided into following three types: i. Primary market ii. Secondary market iii. Terminal market

1. Primary market
When the goods are sold by the producers to the wholesalers or to their agent at first step, the primary market come into existence.

2. Secondary market
When goods are sold by the wholesaler to the retailers, the duration of this second step of sale is known as secondary market. Secondary market is a link between primary and secondary market.

3. Terminal market
When goods are finally sold by the retailers to the ultimate consumers, the terminal market comes into existence.

(g) Market according to credit

On the basis of credit, the market is divided into following types: i. Money market ii. Capital market iii. Stock market iv. Foreign market

1. Money market
The money market consist of the banks and other financial institutions which deal in money and provide short term financial facilities to the various business concern.

2. Capital market
The capital market consists of banks, investment trusts, insurance companies and other financial institutions which provide long term financial facilities to the industrialists and other business concerns. For example Investment Corporation of Pakistan, IDBP etc.

3. Stock market
The stock exchange market is a place where the issued shares, bonds and debenture of the quoted companies and securities of the government are sold and purchases. For example, Karachi Stock Exchange, Lahore Stock Exchange etc.

4. Foreign market
A foreign market is a place where the foreign currency is sold and purchased. In Pakistan foreign currency business is done by banks and approved foreign currency dealers.

Elements or variable of marketing mix What is marketing mix

Marketing mix is a combination of product, price, place and promotion to reach a particular target market to earn maximum profit. The main task of the marketing management is to utilize the marketing mix variables in such a way that meets the needs of the desired consumers and thus maximizes profit. These four Ps (product, price, place and promotion) are the variables which are in the control of the management and they can be explained individually as under:

1. Product
The first element of the marketing mix is the product. The marketing management has to decide what should be produced keeping in view the needs and wants of the consumers. The other important decisions which are made about product are its design, model, sizes, colours, labeling and packing etc. The marketing manager should made all these decisions very carefully so that the product should attract the consumers and the sales and profit must be assured.

2. Price
When the product has been developed, the other important decision made by the user marketing management is to price of these goods and services. At the time of pricing, the marketing management has to consider the factors like the cost of product, the marketing and management expenses, the elasticity of demand, the prices of the competitors goods and profit margin etc.

3. Place
According to marketing mix model, the place includes the market place as well as the channels of distribution and transportation media by which products are transferred from producers point to the consumers end.

4. Promotion
The promotion consists of communications that inform potential consumers of the existence of product and persuade them that these products have need satisfying capabilities. The major promotion media include advertising, personal selling, sales promotion and publicity etc. the success of the marketing process mainly depends upon the selection of right media of promotion. The marketing management should adopt such media of sales promotion which are less costly but are more effective to create new customers and to increase sales. s