How Can You Define The Classification Of A Market?

A market can be classified as follows on the basis of volume of business, nature of transaction, position of seller, area, contents of transaction, etc.
On the basis of volume of transaction:
                     The market can be divided into two kinds on the basis of volume of business transaction.
Wholesale market:
                       It is the market where the middlemen buy the goods in bulk form the producers and manufacturers.
Retail market:
                        It is that market where goods are sold in small quantity directly to the consumer.

On the basis of nature of transaction:
                         The market can be divided into two kinds on the basis of nature of business transaction.
Spot market:
                         The spot market is a ready market where the sellers on the spot physically hand over goods to the buyers. There is an exchange of goods for money at the same time.
Future market:
                         It is a market in which the buyers and sellers make agreement for delivery of goods in future. The contract is made on a certain date but the goods will be delivered in future.

On the basis of position of seller:
                           A market can be divided into the following three kinds on the basis of position of seller.
Primary market:
                           This is the market where the producers of goods sell their farm products to the wholesalers and their agents.
Secondary market:
                             This is the market where the wholesalers sell their goods to the retailers for onward selling to the consumer. The middlemen buy goods from producers and manufacturers and sell to the retailers.
Terminal market:
                             It is the market where goods are purchased for final use or consumption. The retailers sell their goods to consumers.

On the basis of area:
                              A market can be divided into the following four kinds on the basis of area.
Local market:
                             The local market is a place for the purchase and sale of different goods within the city. The buyers and sellers of one city assemble to buy and sell.
Regional market:
                              It consists of many cities and districts of a particular area. The buyers and sellers of different villages, cities and districts assemble to buy and sell the different commodities.
National market:
                              It consists of the whole area of country. The buyers and sellers from all over the country take part in buying and selling.

International market:
                               It consists of the whole world. The buyers and sellers from the whole world meet and exchange their foods and services. The commodities can be bought and sold at different places in the world.


Commodity market:
                               It is a market where the different types of commodities are bought and sold. The wheat, rice, etc are the commodities that are exchanged by the buyer and sellers.

Money market:
                              It is a market where the financial institutions deal in money. The banks and financial institution are engaged in borrowing and lending of funds.

Stock exchange market:
                                It is a market where shares and debentures of different companies are bought and sold.

Markets can be classified on different standards. Like a developed or under developed market. Market can be classified according to people who visit the market, financial conditions, classification based on the countries, etc.

Today, the term 'market' has a renewed meaning and implication. It is as diverse in meaning as it is in functionality. There is a dedicated market for every sphere of business product and service. The market for a particular product or service is governed by availability, accessibility and subject to change. A market is classified on the basis of whether the targeted user of the product is a consumer or a business. Accordingly, the market is further divided into that of end or middle products.

Ideally, the market gurus have defined market classification as 'the identification of the 'end' the products or services serve'. Classification of any market is in fact, the starting point for any future analysis. The market is distinct for every product and service and needs to be identified at the onset of a venture. It is extremely essential for any business to first conduct a detailed study of the targeted market and then proceed to make the initial investment and project report. All through the operations and life of a business, every change in design and strategy is based on the market demand and quality. The process of classifying a market involves the expertise and experience of marketing professionals.