Understanding Market
“Marketing takes a day to learn. Unfortunately it takes time to master.”
— Philip Kotler
In the traditional sense, the term 'market' refers to the place where buyers and sellers gather to enter into transactions involving the exchange of goods and services. It is in this sense that this term is being used in day to day language, even today. The other ways in which this term is being used is in the context of a product market (cotton market, gold or share market), geographic market (national and international market), type of buyers (consumer market and industrial market) and the quantity of goods transacted (retail market and wholesale market). But in modern marketing sense, the term market has a broader meaning. It refers to a set of actual and potential buyers of a product or service. For example, when a fashion designer designs a new dress and offers it for exchange, all the people who are willing to buy and offer some value for it can be stated to be the market for that dress. Similarly, market for fans or bicycles or electric bulbs or shampoos refers to all the actual and potential buyers for these products
As per passage, which of the following is not the “other ways” in which the term “market” is being used?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Service Market
Option (1) Product Market — One of the other ways in the passage (Incorrect). It is the first use listed.
Option (2) Share Market — One of the other ways in the passage (Incorrect). It is given as an example of a product market.
Option (3) Wholesale Market — One of the other ways in the passage (Incorrect). It is a market named by the quantity of goods transacted.
Option (4) Service Market — Not one of the other ways in the passage (Correct). Besides the place where buyers and sellers meet, the passage lists markets by product, geography, type of buyers and quantity of goods transacted. It names no ‘service market’.
Note: The passage is taken from the NCERT chapter ‘Marketing’: its section ‘Understanding Market’, with the Philip Kotler quote from the start of the chapter. It has been reproduced by NTA in the exam. Read NCERT thoroughly, even the quotes at the start of a chapter.
NCERT (2026-27 Edition): “Understanding Market In the traditional sense, the term ‘market’ refers to the place where buyers and sellers gather to enter into transactions involving the exchange of goods and services. It is in this sense that this term is being used in day to day language, even today. The other ways in which this term is being used is in the context of a product market (cotton market, gold or share market), geographic market (national and international market), type of buyers (consumer market and industrial market) and the quantity of goods transacted (retail market and wholesale market).” |