ON THE BASIS OF GEOGRAPHICAL AREA

On the basis of geographical area
From the marketing perspective, the geographical area in which the product sales should be undertaken has vast implications for the firm. On the basis of geographical area covered, markets are classified into:-

Local Markets: When buyers and sellers are limited to a local area or region, the market is called a local market. Generally, highly perishable goods and bulky articles, the transport of which over a long distance is uneconomical’ command a local market. In this case, the extent of the market is limited to a particular locality. For example, locally supplied services such as those of hair dressers and retailers have a narrow customer base.

Regional Markets: Regional markets cover a wider area such as a few adjacent cities, parts of states, or cluster of states. The size of the market is generally large and the nature of buyers may vary in their demand characteristics.

National Markets: When the demand for a commodity or service is limited to the national boundaries of a country, we say that the product has a national market. The trade policy of the government may restrict the trading of a commodity to within the country. For example Hindi books may have national markets in India, outside India one may not have market for Hindi books.

International markets: A commodity is said to have international market when it is exchanged internationally. Usually, high value and small bulk commodities are demanded and traded internationally. For example Gold and Silver are examples of commodities that have international market.

The above classification has become more or less outdated as we find that in modern days even highly perishable goods have international market.

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