UNIT III��INTRODUCTION TO MARKETS �
UNIT III TOPICS
What is a Market?
Market is defined as a place or point at which buyers and sellers negotiate their exchange of well-defined products or services.
MARKET
Market is any area over which buyers and sellers are in close touch with one another, either directly or through dealers, that the price obtainable in one part of the market affects the prices paid in other parts. - Benham
MARKET CLASSIFICATION
Classification on the basis of Area covered or location
Classification on the basis of time
Classification on the basis of degree of competition
Imperfect market take several forms
Types of competition
Competition is of two types
PERFECT COMPETITION
A market structure in which all firms in an industry are price takers and in which there is freedom of entry into and exit from the industry is called Perfect Competition.
The market with perfect competition condition is known as perfect market.
FEATURES OF PERFECT MARKET
IMPERFECT COMPETITION
A market structure in which all the firms in the industry are price makers and in which there lies restrictions to enter in to the industry is called Imperfect Competition.
The market with imperfect competition condition is known as imperfect market
FEATURES OF IMPERFECT MARKET
FEATURES OF MONOPOLY
FEATURES OF MONOPOLISTIC COMPETITION
PRICING
Pricing is not an exact science, more often, are done by trial & error.
Pricing is an important exercise, Under pricing will result in losses and over pricing will make the customers run away.
To determine price in a scientific manner it is necessary to understand pricing methods & procedures.
PRICING OBJECTIVES
PRICING METHODS
PRICING METHODS