Evolution of marketing can be studied by dividing them into different stages according to their periond of development and research. Here, the evolution of market can be studied in seven different stages. Stages of evolution of market are self-sufficient stage, exchange oriented stage, production oriented stage, sales oriented stage, marketing oriented stage, consumers oriented stage and management oriented stage.
In self-sufficient stage of the evolution of market, the concept of marketing was totally absent because each family was self-sufficient. The human beings were nothing more than hunting and gathering foods. They had neither to sell nor to buy any goods. They consumed what they produced. People started to produce more than what they need with the growing of population. The surplus goods were exchanged in term of goods needed to those who had surplus and ready to exchange in exchange oriented stage. This exchanging system is also known as barter system. In this stage, people invented the coin to avoid the problem arouse in exchanging of goods as inconvenient, tedious, time consuming and measurement problem. Production oriented stage was developed after the industrial revolution in the world. Production oriented stage helped to develop the viewpoints in producers as if the products are good and have reasonable price with wide availability, customers' will buy the goods with little marketing efforts. The primary concern under this stage was to produce more goods through the high production efficiency. Producer thought that the high production could maintain the lower production cost, as a result there was no problem of selling. They started to establish sales department to sell the products at a price determined by the producers. In sales oriented stage, they assumed that customers would normally not purchase enough unless approached through incentive sales promotion salesmanship efforts. They thought that the products were not purchased but they had to be sold with the help of incentive tools. It was clear that the main problem in the economy was not to produce the goods but to sell them. So, organization and marketers started to use aggressive promotional tools, such as advertising and salesperson to pursuade the customers about the goods. Their main purpose was to attract the customers to the products. Greater emphasis was given in increasing the sales than customers' satisfaction. It was emphasized first to determine the needs and demands of the people and to distribute the goods more effectively and to efficiently than competitors in marketing oriented stage. They decided to find out the needs of the customers and produce what customers actually needed.
Consumer oriented stage is the modern concept of marketing which was introduced after 1950 A.D. It believes the philosophy consumer and satisfaction not the product. It focuses to provide maximum satisfaction as a result people are getting the required products at their home. Home delivery services, after sales services, free camp and free installation etc are the examples of this consumers oriented stage.
Management oriented stage focuses and suggests to the management that marketing must be well planned, well organized, well staffed and well controlled. In this stage, the producers must first determine what it can sell, how much it can sell, what approaches must be used to convince the changing customers. Thus, several local, regional, national and international organizations are established to manage the marketting activities around the world. FNCCI, Nepal Chamber of Commerce, SAFTA, EU and WTO are some of the examples of the organizations. These organizations are operating different activities to manage the marketing aroung the world.Evolution of marketingtypes of market
There are different types of market. Among them major types of market can be classified on the basis of the following features:
1. Geography Basis
a. Local Market
b. Regional Market
c. National Market
d. International Market
2. Volume Basis
a. Wholesale Market
b. Retail Market
3. Delivery Basis
a. Spot Market
b. Future Market
4. Control Basis
a. Regulated Market
b. Unregulated Market
5. Nature Basis
a. Commodity Market
b. Capital Market
c. Service Market
6. Function Basis
a. General Market
b. Specialized Market
7. Time Basis
a. Very short period Market
b. Short period Market
c. Long period Market
d. Very Long period Market
8. Competition Basis
a. Perfect competition Market
b. Imperfect Market
c. Monopoly Market
1. On the basis of Geographical area:
On the basis of geographical area, market can be divided into four types as local market, regional market, national market and international market. In local market, perishable goods like fruits, vegetables, fish, meat and milk are exchanged among the local people.
The market which occupies a large area is known as regional market. This market may cover several villages and towns or even districts. People from different places visit there to exchange the goods.
If the market of goods or services been expanded nation wide, it is known as national market. Products like clothes, tea, coffee, cigarettes, drinks, cement, electrical goods as T.V., computer, refrigerator, vacuum cleaner, heater, etc. are bought and sold nationwide. This market is wider than regional market.
International market is known as world market or import- export market. If goods and services are sold and bought all over the world, it is known as international market. Some international products such as Toyota, Phillips products, Gulf Oil, Sony, Aiwa etc. are exchanged worldwide.
2. On the basis of the volume, market can be divided into two different types as wholesale market and retail market. The market, which deals a large amount of goods is known as wholesale market. This market purchases the goods from producers and sells to the retailers in wholesale amount. Generally, they do not sell the goods to ultimate consumers. The market which deals with the small quantities of product is known as retail market. This market sells the goods to thd ultimate consumers in retail price. This market keeps direct relation to the consumers.
3. On the basis of Delivery:
On this basis market can be classified as spot market and future market. This market deals on the certain period of time and for the for the long period. In this spot market, the delivery of goods and payment take immediately after the agreement between buyers and sellers. In this type of market, selling, buying and paying take place at a time.
In the future market, arrangement or contract for buying and selling is made in present but goods or services are delivered in future. Payment and physical delivery take place in the future according to the agreement between buyers and sellers.
4. On the basis of Control:
The types of market which are diveded on the basis of control are reguulated market, unregulated market. The market which is controlled by rules and regulations of government and trade association is known as regulated market. The government regulated the production, quality, features, prices and distribution. This is one of the reasonable and fair market.
5. On the basis of nature of Product/Subject:
Commodity market, capital (financial) and service market come under the basis of nature of product of market. All kinds of products are bought and sold in the commodity market. Consumers' goods and industrial goods are available in this market.
The market where financial aspects are available such as deposit of cash, provision of loans, buy and sell of shares, debenture and securities etc. is known as capital market. It further divided into money market and capital market. It also provide short as well as long term loan to the people and organizations can be provided by this market.
If the physical goods are not transferred but services are purchased and sold, then it is known as services market. Some organizations like electricity authority board, tele-communication office, water supply office etc are included in this service market.
6. On the basis of Functions:
Market can also be divided into mixed or general market and specialized market market on the basis of its functions. All varieties of products are purchased and sold in general or mixed market. This is very common and popular market.
The market where specific products are purchased and sold are known as specialized market. No variety of products is available in this market. The example of this market are vegetable market, gold ornament market, share market etc.
7. On the basis of time:
On the basis of time, market can be classified into different types or kinds. They are very short period market, short period market, long period market and very long period market. The market where goods of daily requirements are exnchanged, it is known as very short period market. Mainly perishable goods like vegetables, meat, fruits, milk etc are available in the very short period market.
Much more time is given to adjust the demand than very short period market. Demand plays vital role to determine the price of the products. Long period market provides sufficient time to adjust the demand of the customers for the products. The price is mainly determined on the basis of demand and supply.
Very long period market is a permanent types of market because goods are produced and supplied according to the changing environment. Time is sufficient to supply the goods, adopt and implement all kinds of devices for tehe production and adoption of the changing environment sufficient time is given.
8. On the basis of Competition:
On the basis of the competition of production, consumption, distribution, demand and supply of the goods and products market can be divided into three different kinds. Three different kinds of market divided on the basis of competition are perfect market, unperfect market and monopoly market.
Perfect market is on e of the impracticable market because price is not detemined on the basis of interaction of both buyers and seller, etc. In this market, buyers and sellers are fully aware about the prices of the products. All the products are homogenous in nature. Both buyers and sellers have perfect information., freedom to enter and leave the market.
But imperfect market are opposite to the perfect market. Price is not uniform and there is no free competition and buyers. If the single producer or supplier controls the market, it is known as monopoly market. In this type of market, there is no competition for the products and producers or sellers. The price is determined by the interest of suppliers.
The major concepts of market can be classified into three parts. They are as follows:
1. Place concept
2. Area concept
3. Demand concept
1. Place concept:
Under this concept, a market is a convenient meeting place for buyers and sellers to gather together in order to conduct buying and selling activities. It is very common and narrow concept. A place concept of market where buyers and sellers meet together to perform the exchange function.
2. Area concept:
According to this concept, market means a group of potential buyers and sellers spread over an area connected by the means of transportation and communication. Buyers and sellers keep the close relation to each other with the help of transportation and communication. They carry out the exchange functions without face to face meeting or direct contact. It may not be necessary that the market should be a specific place. It may extend beyond district, region and countries to international dimensions.
According to Kotler "Market is an area of potential exchanges, that is a group of buyers and sellers interested in negotiating the terms of purchase and sale of goods and services."
Hence, we can say that market is not only the convenient meeting place but it is an area of potential with the help of modern means of communication such as correspondence, telephone, fax and email etc.
3. Demand Concept:
According to this concept, market represents the total demand of customers. In this sense, market means people with needs to satisfy, the money to spend and will or desire to spend that money to satisfy their wants. If anyone element is not satisfied, that can't be the needs. So, meet the meaning of demand, people should have the needs, they should have money to spend, desire to spend and money to satisfy their wants. Our wants are unlimited and want satisfaction is never ending. It is continuous from the birth to death.
According to Stanton, "Market may be defined as an aggregate demand by potential buyers of a product or services."
In simple word, market is a place where buyers and sellers gather together to buy or sell goods. They gather together to buy or sell goods that supports to fulfill the needs and demands according to their tastes and preferences.
The word market is derived from the Latin word MARCATUS which means merchandising, trade or a place where business is conducted. It means, market is a place or locality where things are bought and sold and buyers and sellers meet to affect purchase and sell. For eg. Kathmandu, the big city of Nepal, Calcutta, Delhi etc. of India where customers visit and purchase the goods as accordance of their requirements. But this meaning is very simple and narrow. It can be defined in various ways.
According to the American Marketing Association(AMA) "Market is the aggregate demand of potential buyers for a product of service."
According to Kolter and Armstrong "Market is the set of actual and potential buyers of a products."
In conclusion, we can say that market is not only the place where buyers and sellers meet each other to purchase and sell the goods. It is a mechanism by which buyers and sellers meet directly or indirectly for the exchange of goods or services in terms of monetary value. Demand, supply, market information, government policy and middleman affect the exchange process of market.