NCERT Textbook: Understanding the Market | Entrepreneurship Class 11 - Commerce PDF Download

 Page 1


 91 
UNIT 5 
Concept of Market 
Learning Objectives 
After reading this unit the student will be able to: 
? Understand the concept of market and its evolution over the time. 
? Understand the meaning and concept E-Business and E-Commerce. Its role in the modern day 
business community. 
? Analyze the Market Environment at Micro and Macro Level. 
? Explain the techniques of Market Research and the instruments used in the same. Appreciate the role 
of Market Survey as a source of collecting market information.  
? Understand the strategy of market expansion and development. 
? Understand the elements of trade and commerce  
? Explain the concept of marketing mix and the four P‘s of marketing. 
? Understand the concept, role and importance of Price. 
Market, Market, Where Are You? 
Remember the days of Junior School, when the one often repeated topic for essay writing as well as for 
drawing and painting activity used to be a "Market Scene". 
A variety of depictions shown with mostly one common opinion of holding a market area as a busy, 
noisy, crowded place, with several shops, hotels, cafeterias, all beautifully decorated; hawkers and 
peddlers shouting on the top of their voices to attract customers, some of which, were in hurry while 
others just go for window shopping. 
With the passage of time, the difference can be now realized from words describing markets as being 
more sophisticated, neat and clean, with decked up showrooms piled with variety and display making 
choice difficult, centrally air conditioned, elegant ambience, well equipped with theatres to cafeterias 
and washrooms all under roof. 
The markets of Dubai, Hong Kong, Singapore, Bangkok are world renowned; Bombay's Big Bazaars, 
Sector 17 of Chandigarh, Connaught Place or Chandni Chowk at Delhi are the places which visitors 
include on their sight-seeing tours. Many amongst you during school excursions or educational tours 
either sneak out or seek permission to have a quick "look" at the "Markets" of that place merely to do 
some souvenir shopping for friends and family. 
World across and almost all age groups are familiar with the term 'Market' in some way or the other 
"Coming to the market?? "Where??- is the immediate question. Some relate to them as shopping areas 
adjacent to their houses, some as Marts, Malls and Mansions, Lanes or Sectors, Big Bazaars or Super 
Markets etc. But question still remaining, "ARE THESE AREAS ONLY THE MARKET"? or is there 
something else......... 
 
 
 
Page 2


 91 
UNIT 5 
Concept of Market 
Learning Objectives 
After reading this unit the student will be able to: 
? Understand the concept of market and its evolution over the time. 
? Understand the meaning and concept E-Business and E-Commerce. Its role in the modern day 
business community. 
? Analyze the Market Environment at Micro and Macro Level. 
? Explain the techniques of Market Research and the instruments used in the same. Appreciate the role 
of Market Survey as a source of collecting market information.  
? Understand the strategy of market expansion and development. 
? Understand the elements of trade and commerce  
? Explain the concept of marketing mix and the four P‘s of marketing. 
? Understand the concept, role and importance of Price. 
Market, Market, Where Are You? 
Remember the days of Junior School, when the one often repeated topic for essay writing as well as for 
drawing and painting activity used to be a "Market Scene". 
A variety of depictions shown with mostly one common opinion of holding a market area as a busy, 
noisy, crowded place, with several shops, hotels, cafeterias, all beautifully decorated; hawkers and 
peddlers shouting on the top of their voices to attract customers, some of which, were in hurry while 
others just go for window shopping. 
With the passage of time, the difference can be now realized from words describing markets as being 
more sophisticated, neat and clean, with decked up showrooms piled with variety and display making 
choice difficult, centrally air conditioned, elegant ambience, well equipped with theatres to cafeterias 
and washrooms all under roof. 
The markets of Dubai, Hong Kong, Singapore, Bangkok are world renowned; Bombay's Big Bazaars, 
Sector 17 of Chandigarh, Connaught Place or Chandni Chowk at Delhi are the places which visitors 
include on their sight-seeing tours. Many amongst you during school excursions or educational tours 
either sneak out or seek permission to have a quick "look" at the "Markets" of that place merely to do 
some souvenir shopping for friends and family. 
World across and almost all age groups are familiar with the term 'Market' in some way or the other 
"Coming to the market?? "Where??- is the immediate question. Some relate to them as shopping areas 
adjacent to their houses, some as Marts, Malls and Mansions, Lanes or Sectors, Big Bazaars or Super 
Markets etc. But question still remaining, "ARE THESE AREAS ONLY THE MARKET"? or is there 
something else......... 
 
 
 
 92 
Market: 
The word "market" is derived from the Latin word 'marcatus' meaning merchandise, ware, 
traffic, trade or a place where business is conducted. 
Golden Days: 
In olden days, buying and selling was done by coming together at periodical fairs held at 
specific places on particular dates. In the days of the 'barter system', the exchange was of goods 
with goods only. Then, the invention of 'money' as a means of exchange revolutionized the 
market system. 
Markets: They are responsible for making the economy strong and stable, in itself is a very 
dynamic concept. Market has been steadily acquiring greater dynamism and robustness. Ever 
since its evolution, different authors have tried defining it differently. It has grown and changed 
over the period of time and still the process is in progress. 
The concepts pertaining to meaning of market are broadly classified as being: 
1. Traditional Markets: 
 The concept of a traditional market corresponds to the early production phase when there 
was a general scarcity of manufactured goods in the market. The phase of 'pre-industrial 
revolution' world was characterized by an agriculture-cum-handicraft economy, with no 
elaborate distribution system. The agriculturist, whether he produced corn or cotton, meat 
or butter disposed of the surplus in his immediate neighborhood. 
 According to the American Market Association:- 
 "At every point where a specific commodity is concentrated for sale a market is found". 
 The definition gives the traditional meaning of market. The emphasis is on: 
 (1) Place: The goods available for sale are bought to a specific place and the buyers of 
those goods reach those places for buying them.  
 (2) Different markets for different commodities such as vegetable market, food grains 
market etc. Traditional concept focuses that market means ?a place" only, where 
actual buying and selling takes place. 
 After the Second World War, especially in the fifties and sixties, the size and character of 
the markets in many countries of the world changed enormously. With the passage of 
time, the industrial activity has intensified in terms of: 
? Quantity 
? Quality 
? Variety of the products 
? Competition 
? Awareness on the part of consumers 
? Emergence of laws and enactments to protect consumer‘s interest. 
Page 3


 91 
UNIT 5 
Concept of Market 
Learning Objectives 
After reading this unit the student will be able to: 
? Understand the concept of market and its evolution over the time. 
? Understand the meaning and concept E-Business and E-Commerce. Its role in the modern day 
business community. 
? Analyze the Market Environment at Micro and Macro Level. 
? Explain the techniques of Market Research and the instruments used in the same. Appreciate the role 
of Market Survey as a source of collecting market information.  
? Understand the strategy of market expansion and development. 
? Understand the elements of trade and commerce  
? Explain the concept of marketing mix and the four P‘s of marketing. 
? Understand the concept, role and importance of Price. 
Market, Market, Where Are You? 
Remember the days of Junior School, when the one often repeated topic for essay writing as well as for 
drawing and painting activity used to be a "Market Scene". 
A variety of depictions shown with mostly one common opinion of holding a market area as a busy, 
noisy, crowded place, with several shops, hotels, cafeterias, all beautifully decorated; hawkers and 
peddlers shouting on the top of their voices to attract customers, some of which, were in hurry while 
others just go for window shopping. 
With the passage of time, the difference can be now realized from words describing markets as being 
more sophisticated, neat and clean, with decked up showrooms piled with variety and display making 
choice difficult, centrally air conditioned, elegant ambience, well equipped with theatres to cafeterias 
and washrooms all under roof. 
The markets of Dubai, Hong Kong, Singapore, Bangkok are world renowned; Bombay's Big Bazaars, 
Sector 17 of Chandigarh, Connaught Place or Chandni Chowk at Delhi are the places which visitors 
include on their sight-seeing tours. Many amongst you during school excursions or educational tours 
either sneak out or seek permission to have a quick "look" at the "Markets" of that place merely to do 
some souvenir shopping for friends and family. 
World across and almost all age groups are familiar with the term 'Market' in some way or the other 
"Coming to the market?? "Where??- is the immediate question. Some relate to them as shopping areas 
adjacent to their houses, some as Marts, Malls and Mansions, Lanes or Sectors, Big Bazaars or Super 
Markets etc. But question still remaining, "ARE THESE AREAS ONLY THE MARKET"? or is there 
something else......... 
 
 
 
 92 
Market: 
The word "market" is derived from the Latin word 'marcatus' meaning merchandise, ware, 
traffic, trade or a place where business is conducted. 
Golden Days: 
In olden days, buying and selling was done by coming together at periodical fairs held at 
specific places on particular dates. In the days of the 'barter system', the exchange was of goods 
with goods only. Then, the invention of 'money' as a means of exchange revolutionized the 
market system. 
Markets: They are responsible for making the economy strong and stable, in itself is a very 
dynamic concept. Market has been steadily acquiring greater dynamism and robustness. Ever 
since its evolution, different authors have tried defining it differently. It has grown and changed 
over the period of time and still the process is in progress. 
The concepts pertaining to meaning of market are broadly classified as being: 
1. Traditional Markets: 
 The concept of a traditional market corresponds to the early production phase when there 
was a general scarcity of manufactured goods in the market. The phase of 'pre-industrial 
revolution' world was characterized by an agriculture-cum-handicraft economy, with no 
elaborate distribution system. The agriculturist, whether he produced corn or cotton, meat 
or butter disposed of the surplus in his immediate neighborhood. 
 According to the American Market Association:- 
 "At every point where a specific commodity is concentrated for sale a market is found". 
 The definition gives the traditional meaning of market. The emphasis is on: 
 (1) Place: The goods available for sale are bought to a specific place and the buyers of 
those goods reach those places for buying them.  
 (2) Different markets for different commodities such as vegetable market, food grains 
market etc. Traditional concept focuses that market means ?a place" only, where 
actual buying and selling takes place. 
 After the Second World War, especially in the fifties and sixties, the size and character of 
the markets in many countries of the world changed enormously. With the passage of 
time, the industrial activity has intensified in terms of: 
? Quantity 
? Quality 
? Variety of the products 
? Competition 
? Awareness on the part of consumers 
? Emergence of laws and enactments to protect consumer‘s interest. 
 93 
 All this, gradually compelled manufacturers/industries to produce what the consumers 
wanted. Thus, a new concept, a more scientific approach emerged reunite/reconstruct 
sent. 
 In the words of Carnot:- 
 "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 tend to equality easily and quickly?. 
This definition widens the area of a market by advocating: 
? Market is not restricted to a particular place but to a region 
? The buyers and sellers of the whole region have free access to one another 
? This accessibility enables the forces of demand and supply to operate and determine 
competitive prices  
? The whole region is taken as a place of market. 
2. Market of Seventies / Eighties –Modernised Version 
 Every business activity is consumer oriented. According to Peter Drucker ?the purpose of 
business is to create customer" and customers do not have geographical boundaries?. 
 Thus, according to modern thinkers "market" further expanded. They stopped treating it 
as a place and believed strongly that the coming together of buyers and sellers living 
anywhere and transacting purchase and sale of goods is said to be a market'. 
 To support the wider view of market, Clark and Clark defined a market as: 
 ?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.". 
 Analysis of the definition:- 
 The market is not taken as a geographical place but a meeting of: 
(i) Buyers and sellers 
(ii) For a given commodity 
(iii) Who remains in close contact format with each other through any means personally, 
by mail, phone etc. 
(iv) Buyers and sellers are in competition with one another. 
(v) The place or area can be regional, national or international. 
 Thus, based on the definition, it can be summarized that 'A market is the atmosphere of a 
region in which the forces of demand and supply operate directly or by means of any kind 
of communication that are sufficient to bring about transfer in the title of the goods and it 
does not necessarily mean only a place where actual buying and selling in conducted‘.  
 
Page 4


 91 
UNIT 5 
Concept of Market 
Learning Objectives 
After reading this unit the student will be able to: 
? Understand the concept of market and its evolution over the time. 
? Understand the meaning and concept E-Business and E-Commerce. Its role in the modern day 
business community. 
? Analyze the Market Environment at Micro and Macro Level. 
? Explain the techniques of Market Research and the instruments used in the same. Appreciate the role 
of Market Survey as a source of collecting market information.  
? Understand the strategy of market expansion and development. 
? Understand the elements of trade and commerce  
? Explain the concept of marketing mix and the four P‘s of marketing. 
? Understand the concept, role and importance of Price. 
Market, Market, Where Are You? 
Remember the days of Junior School, when the one often repeated topic for essay writing as well as for 
drawing and painting activity used to be a "Market Scene". 
A variety of depictions shown with mostly one common opinion of holding a market area as a busy, 
noisy, crowded place, with several shops, hotels, cafeterias, all beautifully decorated; hawkers and 
peddlers shouting on the top of their voices to attract customers, some of which, were in hurry while 
others just go for window shopping. 
With the passage of time, the difference can be now realized from words describing markets as being 
more sophisticated, neat and clean, with decked up showrooms piled with variety and display making 
choice difficult, centrally air conditioned, elegant ambience, well equipped with theatres to cafeterias 
and washrooms all under roof. 
The markets of Dubai, Hong Kong, Singapore, Bangkok are world renowned; Bombay's Big Bazaars, 
Sector 17 of Chandigarh, Connaught Place or Chandni Chowk at Delhi are the places which visitors 
include on their sight-seeing tours. Many amongst you during school excursions or educational tours 
either sneak out or seek permission to have a quick "look" at the "Markets" of that place merely to do 
some souvenir shopping for friends and family. 
World across and almost all age groups are familiar with the term 'Market' in some way or the other 
"Coming to the market?? "Where??- is the immediate question. Some relate to them as shopping areas 
adjacent to their houses, some as Marts, Malls and Mansions, Lanes or Sectors, Big Bazaars or Super 
Markets etc. But question still remaining, "ARE THESE AREAS ONLY THE MARKET"? or is there 
something else......... 
 
 
 
 92 
Market: 
The word "market" is derived from the Latin word 'marcatus' meaning merchandise, ware, 
traffic, trade or a place where business is conducted. 
Golden Days: 
In olden days, buying and selling was done by coming together at periodical fairs held at 
specific places on particular dates. In the days of the 'barter system', the exchange was of goods 
with goods only. Then, the invention of 'money' as a means of exchange revolutionized the 
market system. 
Markets: They are responsible for making the economy strong and stable, in itself is a very 
dynamic concept. Market has been steadily acquiring greater dynamism and robustness. Ever 
since its evolution, different authors have tried defining it differently. It has grown and changed 
over the period of time and still the process is in progress. 
The concepts pertaining to meaning of market are broadly classified as being: 
1. Traditional Markets: 
 The concept of a traditional market corresponds to the early production phase when there 
was a general scarcity of manufactured goods in the market. The phase of 'pre-industrial 
revolution' world was characterized by an agriculture-cum-handicraft economy, with no 
elaborate distribution system. The agriculturist, whether he produced corn or cotton, meat 
or butter disposed of the surplus in his immediate neighborhood. 
 According to the American Market Association:- 
 "At every point where a specific commodity is concentrated for sale a market is found". 
 The definition gives the traditional meaning of market. The emphasis is on: 
 (1) Place: The goods available for sale are bought to a specific place and the buyers of 
those goods reach those places for buying them.  
 (2) Different markets for different commodities such as vegetable market, food grains 
market etc. Traditional concept focuses that market means ?a place" only, where 
actual buying and selling takes place. 
 After the Second World War, especially in the fifties and sixties, the size and character of 
the markets in many countries of the world changed enormously. With the passage of 
time, the industrial activity has intensified in terms of: 
? Quantity 
? Quality 
? Variety of the products 
? Competition 
? Awareness on the part of consumers 
? Emergence of laws and enactments to protect consumer‘s interest. 
 93 
 All this, gradually compelled manufacturers/industries to produce what the consumers 
wanted. Thus, a new concept, a more scientific approach emerged reunite/reconstruct 
sent. 
 In the words of Carnot:- 
 "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 tend to equality easily and quickly?. 
This definition widens the area of a market by advocating: 
? Market is not restricted to a particular place but to a region 
? The buyers and sellers of the whole region have free access to one another 
? This accessibility enables the forces of demand and supply to operate and determine 
competitive prices  
? The whole region is taken as a place of market. 
2. Market of Seventies / Eighties –Modernised Version 
 Every business activity is consumer oriented. According to Peter Drucker ?the purpose of 
business is to create customer" and customers do not have geographical boundaries?. 
 Thus, according to modern thinkers "market" further expanded. They stopped treating it 
as a place and believed strongly that the coming together of buyers and sellers living 
anywhere and transacting purchase and sale of goods is said to be a market'. 
 To support the wider view of market, Clark and Clark defined a market as: 
 ?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.". 
 Analysis of the definition:- 
 The market is not taken as a geographical place but a meeting of: 
(i) Buyers and sellers 
(ii) For a given commodity 
(iii) Who remains in close contact format with each other through any means personally, 
by mail, phone etc. 
(iv) Buyers and sellers are in competition with one another. 
(v) The place or area can be regional, national or international. 
 Thus, based on the definition, it can be summarized that 'A market is the atmosphere of a 
region in which the forces of demand and supply operate directly or by means of any kind 
of communication that are sufficient to bring about transfer in the title of the goods and it 
does not necessarily mean only a place where actual buying and selling in conducted‘.  
 
 94 
3. Emerging Markets: E-Commerce 
 The world today is changing fast. India is no exception. Specially after the opening up of 
the economy, the pace of change that India and its people are experiencing in their socio-
cultural milieu is mind boggling. The profile of the Indian market is vastly different from 
what it was ten years ago. Modern business is facing global competition due to 
globalization, and increased customer expectation due to changes in technology. For this, 
business throughout the world is changing in terms of: 
? Organization  
? Ways of working  
? Use of technology  
? Perspectives, scope and outlook  
 The world seems to now follow the adage "Market means people". 
 To quote to DYDDY: 
 ?Markets are people with money to spend and desire to spend it" 
 The analysis of this definition of market brings forth the views on market as 'People 
Oriented'. It advocates: 
? People having money and desire to spend it are taken as market. 
? A market cannot exist without people willingness to buy and sell. 
 Though this definition absolutely ignores ' the place of activity' it seems to be more 
practical in today's scenario. The people, a business serves are its market.  
 The prime force behind this change is the advent of mass communication. The market is 
once again emerging as a dynamic and competitive arena, where "the only thing that is 
permanent is change". Facing a barrage of new challenges and opportunities, the definition 
of 'Market‘ seems to have once again undergone a change. 
 The internet has evoked unparalleled and easier ways of conducting day-to-day lives, be it 
business, trade or personal affairs. Business has been a major beneficiary of this boom. 
 E-Business: This refers to "carrying on business activities, both industrial and commercial 
through computer network i.e. Internet. Wherever the of internets, can reach that place 
has become the probable 'Market'. 
 Thus 'Market‘ is emerging as any form where the transaction between the buyer and seller 
is because of interacting electronically using telecommunication network the world over - 
so whole world is a potential Market, with no requirement of physical presence of a buyer 
or seller. Internet - commerce has thus broadened the definition, scope and range of 
markets. 
  Business is a wider term including both as range of activities: 
(i) Industry, i.e., production and related activities 
(ii) Commerce, i.e. trade and aids to trade. Trade means buying and selling 
Page 5


 91 
UNIT 5 
Concept of Market 
Learning Objectives 
After reading this unit the student will be able to: 
? Understand the concept of market and its evolution over the time. 
? Understand the meaning and concept E-Business and E-Commerce. Its role in the modern day 
business community. 
? Analyze the Market Environment at Micro and Macro Level. 
? Explain the techniques of Market Research and the instruments used in the same. Appreciate the role 
of Market Survey as a source of collecting market information.  
? Understand the strategy of market expansion and development. 
? Understand the elements of trade and commerce  
? Explain the concept of marketing mix and the four P‘s of marketing. 
? Understand the concept, role and importance of Price. 
Market, Market, Where Are You? 
Remember the days of Junior School, when the one often repeated topic for essay writing as well as for 
drawing and painting activity used to be a "Market Scene". 
A variety of depictions shown with mostly one common opinion of holding a market area as a busy, 
noisy, crowded place, with several shops, hotels, cafeterias, all beautifully decorated; hawkers and 
peddlers shouting on the top of their voices to attract customers, some of which, were in hurry while 
others just go for window shopping. 
With the passage of time, the difference can be now realized from words describing markets as being 
more sophisticated, neat and clean, with decked up showrooms piled with variety and display making 
choice difficult, centrally air conditioned, elegant ambience, well equipped with theatres to cafeterias 
and washrooms all under roof. 
The markets of Dubai, Hong Kong, Singapore, Bangkok are world renowned; Bombay's Big Bazaars, 
Sector 17 of Chandigarh, Connaught Place or Chandni Chowk at Delhi are the places which visitors 
include on their sight-seeing tours. Many amongst you during school excursions or educational tours 
either sneak out or seek permission to have a quick "look" at the "Markets" of that place merely to do 
some souvenir shopping for friends and family. 
World across and almost all age groups are familiar with the term 'Market' in some way or the other 
"Coming to the market?? "Where??- is the immediate question. Some relate to them as shopping areas 
adjacent to their houses, some as Marts, Malls and Mansions, Lanes or Sectors, Big Bazaars or Super 
Markets etc. But question still remaining, "ARE THESE AREAS ONLY THE MARKET"? or is there 
something else......... 
 
 
 
 92 
Market: 
The word "market" is derived from the Latin word 'marcatus' meaning merchandise, ware, 
traffic, trade or a place where business is conducted. 
Golden Days: 
In olden days, buying and selling was done by coming together at periodical fairs held at 
specific places on particular dates. In the days of the 'barter system', the exchange was of goods 
with goods only. Then, the invention of 'money' as a means of exchange revolutionized the 
market system. 
Markets: They are responsible for making the economy strong and stable, in itself is a very 
dynamic concept. Market has been steadily acquiring greater dynamism and robustness. Ever 
since its evolution, different authors have tried defining it differently. It has grown and changed 
over the period of time and still the process is in progress. 
The concepts pertaining to meaning of market are broadly classified as being: 
1. Traditional Markets: 
 The concept of a traditional market corresponds to the early production phase when there 
was a general scarcity of manufactured goods in the market. The phase of 'pre-industrial 
revolution' world was characterized by an agriculture-cum-handicraft economy, with no 
elaborate distribution system. The agriculturist, whether he produced corn or cotton, meat 
or butter disposed of the surplus in his immediate neighborhood. 
 According to the American Market Association:- 
 "At every point where a specific commodity is concentrated for sale a market is found". 
 The definition gives the traditional meaning of market. The emphasis is on: 
 (1) Place: The goods available for sale are bought to a specific place and the buyers of 
those goods reach those places for buying them.  
 (2) Different markets for different commodities such as vegetable market, food grains 
market etc. Traditional concept focuses that market means ?a place" only, where 
actual buying and selling takes place. 
 After the Second World War, especially in the fifties and sixties, the size and character of 
the markets in many countries of the world changed enormously. With the passage of 
time, the industrial activity has intensified in terms of: 
? Quantity 
? Quality 
? Variety of the products 
? Competition 
? Awareness on the part of consumers 
? Emergence of laws and enactments to protect consumer‘s interest. 
 93 
 All this, gradually compelled manufacturers/industries to produce what the consumers 
wanted. Thus, a new concept, a more scientific approach emerged reunite/reconstruct 
sent. 
 In the words of Carnot:- 
 "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 tend to equality easily and quickly?. 
This definition widens the area of a market by advocating: 
? Market is not restricted to a particular place but to a region 
? The buyers and sellers of the whole region have free access to one another 
? This accessibility enables the forces of demand and supply to operate and determine 
competitive prices  
? The whole region is taken as a place of market. 
2. Market of Seventies / Eighties –Modernised Version 
 Every business activity is consumer oriented. According to Peter Drucker ?the purpose of 
business is to create customer" and customers do not have geographical boundaries?. 
 Thus, according to modern thinkers "market" further expanded. They stopped treating it 
as a place and believed strongly that the coming together of buyers and sellers living 
anywhere and transacting purchase and sale of goods is said to be a market'. 
 To support the wider view of market, Clark and Clark defined a market as: 
 ?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.". 
 Analysis of the definition:- 
 The market is not taken as a geographical place but a meeting of: 
(i) Buyers and sellers 
(ii) For a given commodity 
(iii) Who remains in close contact format with each other through any means personally, 
by mail, phone etc. 
(iv) Buyers and sellers are in competition with one another. 
(v) The place or area can be regional, national or international. 
 Thus, based on the definition, it can be summarized that 'A market is the atmosphere of a 
region in which the forces of demand and supply operate directly or by means of any kind 
of communication that are sufficient to bring about transfer in the title of the goods and it 
does not necessarily mean only a place where actual buying and selling in conducted‘.  
 
 94 
3. Emerging Markets: E-Commerce 
 The world today is changing fast. India is no exception. Specially after the opening up of 
the economy, the pace of change that India and its people are experiencing in their socio-
cultural milieu is mind boggling. The profile of the Indian market is vastly different from 
what it was ten years ago. Modern business is facing global competition due to 
globalization, and increased customer expectation due to changes in technology. For this, 
business throughout the world is changing in terms of: 
? Organization  
? Ways of working  
? Use of technology  
? Perspectives, scope and outlook  
 The world seems to now follow the adage "Market means people". 
 To quote to DYDDY: 
 ?Markets are people with money to spend and desire to spend it" 
 The analysis of this definition of market brings forth the views on market as 'People 
Oriented'. It advocates: 
? People having money and desire to spend it are taken as market. 
? A market cannot exist without people willingness to buy and sell. 
 Though this definition absolutely ignores ' the place of activity' it seems to be more 
practical in today's scenario. The people, a business serves are its market.  
 The prime force behind this change is the advent of mass communication. The market is 
once again emerging as a dynamic and competitive arena, where "the only thing that is 
permanent is change". Facing a barrage of new challenges and opportunities, the definition 
of 'Market‘ seems to have once again undergone a change. 
 The internet has evoked unparalleled and easier ways of conducting day-to-day lives, be it 
business, trade or personal affairs. Business has been a major beneficiary of this boom. 
 E-Business: This refers to "carrying on business activities, both industrial and commercial 
through computer network i.e. Internet. Wherever the of internets, can reach that place 
has become the probable 'Market'. 
 Thus 'Market‘ is emerging as any form where the transaction between the buyer and seller 
is because of interacting electronically using telecommunication network the world over - 
so whole world is a potential Market, with no requirement of physical presence of a buyer 
or seller. Internet - commerce has thus broadened the definition, scope and range of 
markets. 
  Business is a wider term including both as range of activities: 
(i) Industry, i.e., production and related activities 
(ii) Commerce, i.e. trade and aids to trade. Trade means buying and selling 
 95 
 In this context, e-business and e-commerce are defined as follows: 
Basis E-Business E-Commerce 
Meaning Defined as the conduct of Industry, 
trade and commerce using the 
computer networks. 
An electronic communication 
among enterprises, including 
customers, suppliers, business 
partners, government organizations 
and financial institutions. 
Scope E-commerce and other 
electronically conducted business 
functions such as production, 
product development, accounting, 
finance human resource, 
management etc., it wide in scope. 
Covers the interaction of the firm 
with its customers and suppliers, 
over the Internet i.e. it revolves 
around buying and selling products 
and services over the internet. 
 The internet users can now order goods, receive their delivery and make their payment 
while at home, on the internet. 
Role of E-Business or E-Commerce 
E-business is offering great opportunities especially to developing countries. It is helping them 
to enter the prosperous global markets merely at the click of the mouse. This focus on 
computer-to-computer interactions is helping business in discovering new cost-effective 
opportunities not only locally but also internationally. 
E-business‘s growing popularity is because of the role it plays especially for the promotion of 
the business community. The same can be summarized as follows: 
(1) Quick Solution to Doubts: E-business allows quick response to the queries and doubts of 
customers and other business houses, thus facilitating sales by increasing customer 
satisfaction. 
(2) Updated Information: A company's web-site, which can be accessed anywhere in the 
world, provides not only the first hand but the latest information about the price, 
discount, quality, features, range etc. available to the consumers merely at the click of the 
mouse. 
(3) Extending Markets: Because of e-business, the markets have become global. Now making 
sales to customers has spread over the different parts of the world. E-business has made it 
possible to make things available in those areas too where there are no markets around 
like rural areas. 
(4) Shortening of distribution channel: Ever since e-business come into existence, producers 
have started having direct contact with the consumers, resulting in the reduction of 
middlemen and related cost. As a result, the consumers now get goods comparatively at 
lower prices directly from the producers.