Class notes
Agricultural marketing
- Course
- Institution
Providing an deoth information regarding Agricultural marketing course which's in 2rd year of Agricultural Sciences
[Show more]
Seller
Follow
karunakshisajjan
Content preview
UNIT -1Market and Marketing – Meaning – Definitions – Components of market – Market structure –
Meaning – Components – Market conduct – Market performance
MARKET:
Meaning:
The word market comes from the latin word “marcatus‟ which means merchandise or trade or a
place where business is conducted.
Word “market” has been widely and variedly used to mean (a) a place or a building where
commodities are bought and sold, e.g., super market; (b) potential buyers and sellers of a product,
e.g., wheat market and cotton market; (c) potential buyers and sellers of a country or region, e.g.,
Indian market and Asian market; (d) and organization which provides facilities for exchange of
commodities, e.g., Bombay stock exchange; and (e) a phase or a course of commercial activity, e.g., a
dull market or bright market.
The word market in the economic sense carries a broad meaning. Some of the definitions of market
are given as follows:
1. A market is the sphere within which price determining forces operate.
2. A market is the area within which the forces of demand and supply converge to establish a single
price.
3. The term market means not a particular market place in which things are bought and sold but the
whole of any region in which buyers and sellers are in such a freeintercourse with one another that
the prices of the same goods tend to equality, easily and quickly.
4. Market means a social institution which performs activities and provides facilities for exchanging
commodities between buyers and sellers.
5. Economically interpreted, the term market refers, not to a place but to an commodity or
commodities, buyers and sellers who are in free intercourse with one another.
A market exists when buyers wishing to exchange the money for a good or service are in contact
with the sellers who are willing to exchange goods or services for money. Thus, a market is defined
in terms of the existence of fundamental forces of supply and demand and is not necessarily confined
to a particular geographical location. The concept of a market is basic to most of the contemporary
,economies, since in a free market economy, this is the mechanism by which resources are allocated.
Market Marketing
Market is defined as an arrangement whereby Marketing is a function that identifies
buyers and sellers meet each other to conclude human and social needs and satisfies
the transaction. them.
It is a set up i.e. a place. It is a set of processes, i.e. a means of
creating utility.
Market is a process that fixes the price of Marketing is a process that analyses,
commodities through demand and supply forces. creates, informs and delivers value to the
customer.
Market varies by products, place, and factors Marketing philosophy remains same, no
and so on. matter where it is applied.
Trade between parties. Link between customer and company.
Components of a Market:
For a market to exist, certain conditions must be satisfied. These conditions should be both necessary
and sufficient. They may also be termed as the components of a market.
1. The existence of a good or commodity for transactions (physical existence is, however, not
necessary);
2. The existence of buyers and sellers;
3. Business relationship or intercourse between buyers and sellers; and
4. Demarcation of area such as place, region, country or the whole world. The existence of perfect
competition or a uniform price is not necessary.
Dimensions of a Market:
There are various dimensions of any specified market. These dimensions are:
1. Location
2. Area or coverage
3. Time span
4. Volume of transactions
,5. Nature of transactions
6. Number of commodities
7. Degree of competition
8. Nature of commodities
9. Stage of marketing
10. Extent of public intervention
11. Type of population served
12. Accrual of marketing margins
Any individual market may be classified in a twelve-dimensional space.
MARKET STRUCTURE
Meaning:
The term structure refers to something that has organization and dimension – shape, size and design;
and which is evolved for the purpose of performing a function. A function modifies the structure, and
the nature of the existing structure limits the performance of functions.
By the term market structure we refer to the size and design of the market. It also includes the
manner of the operation of the market. Some of the expressions describing the market structure are:
1. Market structure refers to those organizational characteristics of a market which influence the
nature of competition and pricing, and affect the conduct of businessfirms;
2. Market structure refers to those characteristics of the market which affect the traders‟ behavior
and their performances;
3. Market structure is the formal organization of the functional activity of a marketing institution.
An understanding and knowledge of the market structure is essential for identifying the
imperfections in the performance of a market.
Components of Market Structure:
The components of the market structure, which together determine the conduct andperformance
of the market, are:
1. Concentration of Market Power:
The concentration of market power is an important element determining the nature of competition
, and consequently of market conduct and performance. This is measured by the number and size
of firms existing in the market. The extent of concentration represents the control of an individual
firm or a group of firms over the buying and selling of the produce. A high degree of market
concentration restricts the movement of goods between buyers and sellers at fair and competitive
prices, and creates an oligopoly or oligopsony situation in the market.
2. Degree of Product Differentiation:
Whether or not the products are homogeneous affects the market structure. If products are
homogeneous, the price variations in the market will not be wide. When products are
heterogeneous, firms have the tendency to charge different prices for their products. Everyone
tries to prove that his product is superior to the products of others.
3. Conditions for Entry of Firms in the Market:
Another dimension of the market structure is the restriction, if any, on the entry of firms in the
market. Sometimes, a few big firms do not allow new firms to enter the market or make their entry
difficult by their dominance in the market. There may also be some government restrictions on the
entry of firms.
4. Flow of Market Information:
A well-organized market intelligence information system helps all the buyers and sellers to freely
interact with one another in arriving at prices and striking deals.
5. Degree of Integration:
The behavior of an integrated market will be different from that of a market where there is no
integration either among the firms or of their activities
Firms plan their strategies in respect of the methods to be employed in determining prices,
increasing sales, coordinating with competing firms and adopting predatory practices against rivals or
potential entrants. The structural characteristics of the market govern the behavior of the firms in
planning strategies for their selling and buying operations.
Dynamics of Market Structure – Conduct and performance:
The market structure determines the market conduct and performance. The term market conduct
refers to the patterns of behavior of firms, especially in relation to pricing and their practices in
adapting and adjusting to the market in which they function. Specifically, market conduct includes:
(a) Market sharing and price setting policies;
(b) Policies aimed at coercing rivals; and
(c) Policies towards setting the quality of products.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller karunakshisajjan. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now