Classification of Market

The word market was derived from Latin word "Marcatus" which means trading or place of transactions. Market was classified in four categories they are elaborate below:
i) Area Classification
Market can be classified on the basis of geographical area covered by organization such as:
a) Domestic Market
The area of the domestic market is defined by the national boundary. Domestic market may occupy different size of the market area. It may further be classified into the local market town market, district market and national market. If buying and selling goods and services are limited within national boundaries this market is called domestic market. It can further classified as rural market and urban market.
b) International Market
If goods and services are sold across national boundary that market is called international market. International market can also classified on export market which is concentrated on certain geographical area i.e. Europe market or global market where there is no national boundary.

ii) Volume Classification
On the basis of volume market can be classified as:
a) Wholesale Market
If a large number of finished products are purchased from producer and sold to retailer such market is known as wholesale market.
b) Retail Market
If products are sold directly to final consumer at small quantity that market is known as retail market.

iii) Competition Classification
On the basis of competition market can be classified into:
a) Monopoly Market
If number of producer is one no competition exist on market such market is known as monopoly market. Single seller control price, quantity and delivery of product at market.
b) Monopsony Market
There is single buyer of product and buyers control the price, quality of product and terms of sales in market.
c) Oligopoly Market
If the number of sellers is few and number of buyers is manby such market is called oligopoly market. In this market supplier often set price through syndicate.
d) Imperfect Competition
There are large numbers of buyers and sellers in market. Buyers can choose from wide range of product at different price, quality etc. In practice most of the product are bought and sold at imperfect market.

iv) Product and Customer Classification
On the basis of nature of product market can be classified as:
a) Product market
Market can be classified under the product sold in market such as vegetable market, labour market, share market etc.
b) Customer Market
According to customer market can also classified such as farmers market, government market, institutional market etc.