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uk

Types of Market
BTEC Business

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http://www.bized.co.uk

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

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http://www.bized.co.uk

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
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http://www.bized.co.uk

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

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http://www.bized.co.uk

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

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http://www.bized.co.uk

Industrial Markets
The business worlds equivalent
of consumer markets:
business organisations sell to other
businesses
not to a final consumer
these other businesses use what
theyve bought to make new
products
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http://www.bized.co.uk

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

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http://www.bized.co.uk

Whats Traded on Commodity

Markets?

Goods traded on commodity

markets include:
coffee
cocoa
oil
precious metals
diamonds

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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)
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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
Copyright 2007 Biz/ed

http://www.bized.co.uk

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
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http://www.bized.co.uk

Other Capital Sources

Borrowing on the bond markets.
Used by Leeds Utd FC to finance
their ambitions
More on this in Biz/eds Wanna
Argument at:

http://www.bized.ac.uk/current/argument/arg
10-2.htm

Derivatives markets
Copyright 2007 Biz/ed