University of Development Professions Mister Samb
COMMERCE
Commerce/ - selling and the buying of goods and their movement from producer to consumer.
trade - activity that has the aim to make goods available in markets and to make profit
When a trader sells goods at a higher price than he paid for them: he sells them at a profit. When he
sells them at a lower price, then he sells at a loss. The profit (Gross profit or Net profit) is a financial
gain.
Gross profit difference between the selling price and the buying price
what remains to the trader after all his overhead expenses (trading expenses) have
Net profit
been deducted from Gross profit
I – MAIN BRANCHES OF TRADE
HOME/DOMESTIC TRADE FOREIGN/OVERSEAS TRADE
WHOLESALE TRADE RETAIL TRADE IMPORT TRADE EXPORT TRADE
Exporters move with
Importers bring goods
Wholesalers buy in Retailers buy in bulk goods to other
to their country then
bulk and sell in bulk and sell in retail countries and have
have their transactions
their transactions.
II – AUXILIARIES OF TRADE
Movement of goods from their place of manufacture to their place of
Transport
consumption
Agreement in which you pay money to a company and they pay your costs if
Insurance
you have an accident, injury, etc. (examples: life/health/car/travel insurance )
Provision of money to meet the needs of industry and trade;
Banking
money is held in trust for the bank’s customers
Warehousing Storage for merchandises
Advertising Making goods known by the public
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University of Development Professions Mister Samb
MARKETS AND MARKETING
I. TYPES OF MARKETS
Before a producer decides to market (or to distribute) a product to consumers, it is
necessary to determine the markets to be served (targets).
Markets refer to the types of buyers a business wishes to attract and where such
buyers are located.
Companies need to identify their markets because they have many potential customers
for their goods and services.
Physical markets: they give opportunity to buyers and sellers to meet each other and
to have direct contact for a better exchange.
Black market: it is located in the physical markets but goods bought from it generally
have illegal and illicit origins.
Unphysical, virtual or online markets: Nowadays, thanks to internet and
technology, on-line transactions are possible. E. g. people can place orders and do their
shopping via internet. In this type of market, many payment instruments are used.
Commodity or raw material markets: these markets bring together sellers and
buyers and give them the opportunity to exchange specific articles of great value.
Stock exchange market: a stock market is a place where parts of the ownership of
companies are bought and sold, or the organization of people whose job is to do this
buying or selling. Exp: one can buy some shares on the London stock exchange.
II. BRIEF REVIEW OF MARKETING
Marketing is a full range of activities undertaken by companies in order to meet the
customers’ needs and wants and to be profitable as well.
That’s why Marketing managers spend a lot of time and means to set strategies related
to what is acknowledged as Marketing Mix:
- Will the product be made in one size and color, or in several?
- Will the product be high priced, medium priced or low priced?
- Will the product be sold door-to-door or through retail stores?
- Will newspapers, radio, television or social networks advertising be used?
Market research is the study of the people who buy a company’s products or who
may buy a new product. It is used to identify target markets.
Target markets are groups of customers with very similar needs to whom the
company can sell its products.
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