Market Around Us Chapter Notes | Footprints Class 7: Book Solutions, Notes & Worksheets PDF Download

We live in a society where we require goods and services in order to fulfill our basic requirements and needs. Commodities such as vegetables, fruits, medicines, clothes, and books can be purchased from the market, weekly local bazaar, malls, and shopping complexes.

Have you ever wondered, what exactly is a market? How do the goods that we need reach these shops? Who are the buyers and sellers? Let's read more to find answers to these questions.

Markets

A market is a place where buyers and sellers meet and exchange goods and services in return for money. Three kinds of people are primarily involved in the process:

• Those who are engaged in the production Of the goods and services sold in a market and are known as producers.
• Those who buy goods and services for their use and are known as the consumers.
• Those who act as a link between the producers and consumers and are known as traders.

Markets have been in existence since the beginning of human civilisation in the form of the barter system, which gradually gave way to selling and buying of goods through currency.

Types of Markets

Types of markets can vary according to the size and range of goods and services traded. At times, a market may even exist on the Internet; at other times consumers may buy goods and services from the retailers or even from the wholesalers directly. Markets are classified into the two main types:

• retail markets
• wholesale markets

Retail Markets

• Retail trade is defined as selling products to consumers for their personal and daily use.
• Retail markets offer benefits to both suppliers and consumers.

Benefits to Consumers:

• Ability to purchase smaller quantities of a wide range of products at affordable prices.

Benefits to Suppliers:

• Help reach target markets, build product demand, and gain feedback from consumers.

The retail market is the final link in the distribution chain, starting from the retailer buying goods from wholesalers and ending with selling directly to customers for personal use.

Functions of a Retailer

Customer satisfaction is paramount for retailers as it drives sales, profits, and customer loyalty. Retailers provide services to retain existing customers and attract new ones:

• Presenting products innovatively and attractively
• Using advertisements, pamphlets, and discounts
• Utilizing window displays
• Creating a pleasant shopping experience through store layout and decor
• Ensuring easy accessibility
• Providing services like free home delivery and after-sales support

Types of Retail Stores

Various types of retailers exist, including:

• Mobile Traders or Vendors
• Fixed Shop Retailers
• Weekly Markets
• General Stores
• Specialty Stores
• Departmental Stores
• Shopping Malls
• Chain Stores
• Franchise Outlets

In urban areas, door-to-door marketing is common. Online shopping is also popular, allowing customers to browse and order goods online with payments typically made through credit or debit cards.

Wholesale Markets

• Wholesalers buy goods in bulk from manufacturers, or their agents, and sell them to retailers and industrial users.
• Wholesalers act as a link between producers and retailers, facilitating buying, storing, and supplying goods.
• Main functions of wholesalers include extending credit facilities to retailers and bearing risks such as spoilage, damage, and price fluctuations.
• Wholesalers enable producers to reach a wide buyer base through retailers and keep track of market trends.

Selection of the Market

• Consumers consider factors like convenient location, budget, product availability, credit facilities, price, and quality when selecting a market.
• Price and quality are crucial factors influencing a customer's preference for a specific market.

Marketing of Produce by Farmers

• Farmers engage in activities like tilling land, harvesting crops, and storing produce.
• Produce is often sold in markets like mandis to earn better profits and avoid exploitation by intermediaries.
• Weekly markets (haats) and intermediaries play roles in selling farmers' produce to wholesalers or processing units.

Functioning of a Wholesale Market

• Wholesale markets have many sellers and few buyers, leading to price fluctuations.
• Government-regulated markets ensure fair prices for farmers through proper sales methods and transparency.

Role of Intermediaries

• Intermediaries assist farmers in selling produce but may prioritize their profits over farmers' interests.
• Entry of private companies like ITC Limited is changing the dynamics by empowering farmers and preventing exploitation.

Empowerment of Indian Farmer

• The e-choupal initiative by ITC aims to empower small farmers by providing them with Internet access for information and marketing.
• It unites farmers, protects them from exploitation, and allows them to sell produce at fair prices.
• E-choupal has positively impacted millions of farmers by increasing income, reducing costs, and improving produce quality.