CIVICS NOTES MARKET AROUND US

I. TICK THE CORRECT OPTION:

1. Those who buy goods and services for their use and are known as:
a. producers b. consumers c. traders

2. Markets are classified into:

a. two main types b. three main types c. four main types

3. People who are engaged in the production of goods and services are known as:
a. producers b. consumers c. traders

4. Shops which deal in the sale of a particular kind of product are known as:
a. speciality stores b. malls c. departmental stores

5. The last link in the distribution chain that starts when the retailer buys goods from the
wholesaler and ends when the retailer sells it directly to the customers for their personal, non-
commercial use:
a. wholesale market b. retail market c. both of them

6. The retailers do not sell their goods from a fixed place and carry their business by moving
from one place to another:
a. fixed shop retailers b. speciality store c. mobile traders

7. A chain store is an example of a:

a. retail market b. wholesale market c. weekly market

8. Intermediaries sell the farmers' produce to wholesalers who are known as:
a. sanchalak b. arhatiyas c. intermediaries

9. Wholesalers act as a two-way channel between:

a. producers and retailers b. consumers and producers c. both of them

10. The 'e' in e-choupal stands for:

a. an electronically linked Internet connection b. an intermediary c. agricultural
marketing
II. ANSWER THE FOLLOWING:

Q1. What is a market?

Ans1. A market is a place where buyers and sellers meet and exchange goods and services
in return for money.

a. Name two kinds of markets.

Ans2. Markets are classified into the two main types: retail markets and wholesale markets

b. Who is a wholesaler?

Ans3. Wholesalers buy goods in bulk from manufacturers, or their agents and sell them to retailers and
industrial users.  People who are engaged in wholesale trade are known as Wholesalers.
c. What are the criteria used by consumers to select the market of their choice?

Ans 4. The selection of a market by the consumers depends on certain factors:

 the convenient location of the concerned shop or store

 the amount of money or income allotted for the purpose of purchase
 the availability of all the necessary goods in the market
 whether the shop is selling goods on credit, i.e., customers can buy goods now and pay
later.
 whether high quality goods are reasonably priced since a customer would prefer
visiting a store where products are competitively priced.
Both price and quality are equally important factors which influence a customer’s
preference for a particular market.

d. What is the basic idea behind initiating the e-choupal?

Ans 5. The concept of e-choupals is aimed at empowering small and marginal farmers by installing
computers with Internet access in rural areas. This is done by providing up-to-date marketing, weather-
related and agricultural information to farmers. E-choupals also unite the farmersand protects them from
being cheated by middlemen when they go to sell their produce.

VI. Answer the following in brief.

1. Briefly describe the types of markets found in India.

Ans 1.

 Retail Market: Retail trade is defined as selling of products to consumers for their
personal and daily use. The retailer buys products from the manufacturer in large
quantities and sells them to the consumer. Retail markets offer many benefits to
suppliers and consumers.
1. For consumers, the most important benefits are that they can purchase smaller
quantities of a wide range of products at an affordable price.
2. For suppliers, retail markets help to reach their target market, build product
demand through retail promotions, and also gain feedback from the
consumers.
3.The retail market is the last link in the distribution chain that starts when the
retailer buys goods from the wholesaler and ends when the retailer sells it directly
to the customers for their personal, non-commercial use.

 1. Wholesale market; Wholesalers buy goods in bulk from manufacturers, or their

agents and sell them to retailers and industrial users.
2. People who are engaged in wholesale trade are known as wholesalers. They do
not sell products directly to consumers, but to the retailers.
3. This is how the wholesaler becomes the link between the producer and the retailer.
Thereafter, buying and selling takes place between traders. The wholesaler’s main
functions comprise buying, storing and supplying certain specific goods.
4. He/she may extend credit facility to the retailers. He/she also bears the risk of loss
due to spoilage or damage of goods, change in demand and price fluctuations.
5. Wholesalers act as a two-way channel between producers and retailers. They enable
the producers to reach a large number of buyers spread over a wide area through the
retailers. They also keep an eye on the changing market trends.
6. There are many wholesale markets in India, which are characterised by a large
number of sellers and a relatively small number of buyers. As a result, price
fluctuates to a great extent. However, the government keeps prices under control
through regulated markets.

1. Write a brief note on the types of retail stores in India.

Ans 2.

Mobile Traders or Vendors-

1. These retailers do not sell their goods from a fixed place and carry their business by
moving from one place to another according to the sale prospects and their
convenience.
2. Vendors such as hawkers and street sellers fall into this category.
3. They carry a small stock of products and sell the same to the consumer at his/her door step
or at busy places frequented by customers.
• Fixed Shop Retailers-Such retailers operate through fixed shops or stores located in
markets or in residential areas
• Weekly Markets-
1. These markets are held on a specific day of the week.
2. They are frequented by mobile traders and vendors who set up their shops by the day and
shut them by the evening or night.
3. Vegetables, clothes and similar articles of daily use are sold in these markets at relatively
lower prices.
• General Stores-
1. Such stores deal in a variety of general consumer goods such as groceries and stationery
articles.
2. Located in the markets or residential areas, they also provide goods on credit
by maintaining a record.
3. They provide free home delivery service to their customers.
• Speciality Stores-Such stores deal with the sale of a particular kind of product, for
instance, a chemist, clothes, groceries and shoes.

Departmental Stores-A departmental store consists of several shops, each of which

specialises in the sale of a particular product.
1. Although these different shops are centrally linked, they also form a complete sales
unit within themselves.
2. Various commodities such as clothes, shoes, beauty and hair products, children’s clothes,
toys, books, educational aids, kitchen appliances and crockery are sold under oneroof.
3. A number of facilities in terms of parking facilities, restrooms and recreation rooms
are also available to customers in such stores.
4. Several payment counters ensure a convenient shopping experience.
• Shopping Malls-A shopping mall is a largeretailcomplex comprising a number of shops
that sell different types of products, which cater to the needs of people.Malls also have
entertainment facilities for all age groups, excellent parking facilities and restaurants.
• Chain Stores-These are a group of similarretailstores with various branches in different
locations spread across a city or region. They have a common ownership under a central
management and sell the same product under the same terms and conditions irrespective of
their location. Pizza Hut, Fab indiaand Adidas are some examples of chain stores.

3. How is a mobile trader or vendor different from a fixed shop retailer?

Ans 3.

Mobile Traders or Vendors-

1. These retailers do not sell their goods from a fixed place and carry their business by
moving from one place to another according to the sale prospects and their
convenience.
2. Vendors such as hawkers and street sellers fall into this category.
3. They carry a small stock of products and sell the same to the consumer at his/her door step
or at busy places frequented by customers.
• Fixed Shop Retailers-Such retailers operate through fixed shops or stores located in
markets or in residential areas

4. What is a departmental store? Could such stores be found in a shopping mall?

Ans 4.

Departmental Stores-A departmental store consists of several shops, each of which

specialisesin the sale of a particular product.
1. Although these different shops are centrally linked, they also form a complete sales
unit within themselves.
2. Various commodities such as clothes, shoes, beauty and hair products, children’s
clothes,toys, books, educational aids, kitchen appliances and crockery are sold under
oneroof.
3. A number of facilities in terms of parking facilities, restrooms and recreation rooms
are also available to customers in such stores.
4. Several payment counters ensure a convenient shopping experience.

5. What are franchise outlets?

Ans 5.

Such stores have emerged as alternatives to chain stores. These stores have been authorisedby
the company to sell its goods and services at certain places.
1. The franchisee is the person who opens the outlet
2. The franchisor refers to the company which leases out the product to be sold.
3. The franchisee pays the franchisor a certain amount of money in return for permission
to sell the product.
4. The quality of the product cannot be compromised and it has to be sold at the same price
as fixed by the franchisor.
5. In urban areas, door-to-door marketing by salespersons is a regular feature. They inform
customers about the special features of a product, demonstrate its use and offer special
benefits if someone purchases the same.
6. Now people can use the facilities of online shopping provided by the Internet to buy
and sell their goods. Customers can browse online and mail their order to the concerned
store. Mode of payment is usually through use of credit or debit cards.

V. Answer the following in detail.

1. What are the functions of a retailer?

Ans 1.

Customer satisfaction is of utmost importance for the retailer since this ensures excellent
sale of products. This, in turn, translates into profits and makes sure that consumers return
to make more purchases. Services provided by retailers in their quest to retain their
customer base while attracting new ones areas follows:
1. Presenting their products in an innovative and attractive manner so that consumers
are attracted by product presentation.
2. Using print and electronic advertisements, pamphlets and providing discountsto
promote their products
3. Using methods such as window displays to draw people to their shop.
4. The interior décorand layout of the store is a significant factor in a retail market as it
helps to provide a pleasant shopping experience to the customers.
5. Goods are displayed in a manner which provides easy access to the customer.
6. Care is taken to create the right ambience with the appropriate lights, colour scheme and
music so as to make the customer comfortable.
7. Ensuring easy accessibility of their stores so that customers do not go to another shop or
store that has higher visibility and is easily accessible.
8. Providing certain services such as free home delivery, credit facility and after sales
service.

2. How are the functions of a wholesaler different from those of a retailer?

Ans 2.

3. What are the advantages of selling produce in a mandi?

Ans 3.

The agriculturalists are in favour of selling their produce in a mandi, i.e., a large market in a
nearby town or city, where they can earn a higher profit on their produce. A mandi ensures
that the prices are regulated so that the farmers can earn reasonable profits and are not
cheated. Relying on intermediaries such as dalals is not encouraged since they have to be
paid in case they help in selling the crops

Most of the Indian farmers practise subsistence farming, i.e., they produce the amount
which is sufficient for their own consumption. If they grow more than the required
amount, it is sold to the moneylender in the village who in turn sells it to the people who
work at the mandis in the cities

4. What is the role of intermediaries in the marketing and selling of farmers’ produce?

Ans 4.

Role of Intermediaries-Intermediaries or dalals are also significant players in the process of

helping farmers sell their crops. However, they do not always secure the interest of the
farmers while negotiating the price of the produce and instead negotiate with the
wholesalers on their own.
Weekly markets, known as haats, also take place in many villages where farmers sell their
produce. Intermediaries often help the farmers by selling their produce to wholesalers
known as arhatiyas who sell the same to the retailers or to processing unit.

5. Write a short note on the concept of e-

choupal Ans 5.

The local farmer who operates the computer and the kiosk on behalf of ITC is known as the
sanchalak. A computer is provided at his or her house along with an Internet connection that
operates via either a telephone or a satellite.
2. He/She bears the initial expenditure of the system and later earns a fee for running the
entire system. Farming knowledge is transmitted to the agriculturalists; they can buy
seeds, fertilizers, and also access other goods and services.
3. The e-choupal has succeeded in bringing about a drastic change in the lives of millions of
Indian farmers by increasing their income, reducing transaction costs and improving the
quality of the produce.
4. The system of cooperative marketing tries to save farmers from the clutches of
the middlemen. Cooperatives collect produce from farmers and then sell it in mandis.
5. They provide godowns to store the produce if prices are not fair at the mandi. They also
provide agricultural tools, implements and transportation facilities.
6. The concept of e-choupals is aimed at empowering small and marginal farmers by
installing computers with Internet access in rural areas.
7. This is done by providing up-to-date marketing, weather-related and agricultural in
formation to farmers. E-choupals also unite the farmers and protects them from being
cheated by middlemen when they go to sell their produce.