http www bized co uk Types of Market

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 Copyright 2007 – Biz/ed

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 Copyright 2007 – Biz/ed

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 Copyright 2007 – Biz/ed

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 Copyright 2007 – Biz/ed

http: //www. bized. co. uk Industrial Markets The business world’s equivalent of consumer markets: • business organisations sell to other businesses • not to a final consumer • these other businesses use what they’ve bought to make new products Copyright 2007 – Biz/ed

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. htm Copyright 2007 – Biz/ed

http: //www. bized. co. uk What’s Traded on Commodity Markets? Goods traded on commodity

http: //www. bized. co. uk 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) Copyright 2007 – Biz/ed

http: //www. bized. co. uk 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 Copyright 2007 – Biz/ed

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/ed’s ‘Wanna Argument’ at: http: //www. bized. ac. uk/current/argument/arg 10 -2. htm • ‘Derivatives’ markets Copyright 2007 – Biz/ed