1. On the basis of area, markets are classified as follows :
(a) Local Market When the buyers and sellers of product are spread to a village, suburb or township, then the market is called local market.
Example:- Markets for perishable goods -butter, eggs, milk, vegetables, etc.
(b) Regional Market When the market of any product is limited to a region only, then it is called regional market.
Example:- Semi-durable goods – Shirts.
(c) National Market When the product’s buyers and sellers are spread all over the country, then the market of that product is called the national market.
Examples: – Durable goods and industrial goods.
(d) International MarketWhen the buyers and sellers of the products spread in different countries of the world, the market of that product is called the international market.
2. On the basis of commodity, the markets are classified as follows:
(a) Common Market: The common market is the place in which various types of products are sold and bought.
Example – Clothes, Utensils, Jewellery, grocery markets are found in a common market.
(b) Special Market: It is the market in which a special kinds of products are sold and bought.
Example:- Grocery market, Clothes market, Jewellery market, Fruit market, etc.
(c) Market of Sales from Sample: When the sale of the goods is done by looking at the sample then it is called a market of sale by sample. Sale is usually done by showing a sample in wholesale markets.
(d) Market of Sales from GradingPurchase and sale of some items is based on grading.
Example:- Usha Stitching Machine, K-68 Wheat, Lux Soap, Amul butter, Hero Cycle, etc.
3. On the basis of time period, the markets are classified as follows:
(a) Long Run Market – When the the time period becomes so long that according to the demand it is possible to adjust the product, it is a long-term condition. Since the time duration is quite long, we can change all the variable as well as fixed factors. Changing the fixed and variable factors can help adjust both the supply and demand.
(b) Short Period Market – The time period in this market is so short that supply can be increased or decreased by changing the variable factors only. In this market, time period is just so much that the producer can increase the output by fully utilizing the existing capacity.
(c) Very Long -Run Market – When the time period is so long, that long term changes occur both in demand and supply, then it is called a long-run market. Organizational changes are also possible in this period.
(d) Very Short Period Market – In this market, due to limited time period, the sale of the product does not increase or decrease. It means supply is completely fixed. Only demand may change.
Example: Perishable products – milk, curd, butter, fruits, vegetables, eggs, etc.
4. On the basis of sales, the markets are classified as follows :
(a) Retail Market:- The market in which a small quantity of goods is sold to consumers is called Retail Market.
Example – Grocery shop of the locality, sweet shop and clothes shop, etc.
(b) Wholesale Market – In this market, the sale of goods is done in large quantities. In this market, wholesalers sell goods to the retailer.
Example: Textile market, Drug market, etc.
