Understanding the Market — Entrepreneurship STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipUnderstanding the Market4 Marks
Question
Discuss briefly the various concepts of market.
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Answer
The concepts pertaining to market can be classified as follows:
Traditional Concept of Market/Traditional Markets: American Market Association defines the traditional concept of market as, “At every point where a specific commodity is concentrated for sale, a market is found”. This concept of market was prevalent in the 'pre-industrial revolution' era which was characterised by an agriculture-cum-handicraft economy, with no elaborate distribution system. The agriculturist, whether 21 he produced corn or cotton, meat or butter disposed of the surplus in his immediate neighbourhood. Because of this tendency, traditional concept focuses that market means a place' only, where actual buying and selling takes place.
Scientific Concept of Market: According to Cournot, “The term ‘market' is not any particular place in which things are bought and sold but the whole of any region where buyers and sellers are in such free intercourse with one another that the price of the same goods tends to equality easily and quickly”.
Modern Concept of Market/ Modernised Markets: According to Clark and Clark, “In fact, for most commodities, the market must not be thought as a geographical meeting place, but as any getting together of buyers and sellers in person by mail, telephone, telegraph or by any other means of communication”.
According to Peter Drucker, “The purpose of the business is to create customers and customers do not have geographical boundaries”.
Emerging Concept of Market/E-commerce: According to Dyddy, “Markets are people with money to spend and desire to spend it”. This concept of market is prevalent now-a-days and the reason of its evolution could be traced to the changes in modern business in terms of:
Organisation,
Ways of working;
Use of technology,
Perspectives, scope and outlook.
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