MARKETSA LOOK AT CONCEPTS & COMPONENTS

© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

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WHAT IS A “MARKET”?

MARKETS

© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

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A MARKET IS ONE OF A VARIETY OF...

...SYSTEMS, INSTITUTIONS, SOCIAL RELATIONS, PROCEDURES, AND

INFRASTRUCTURES...

...THROUGH WHICH...

...GOODS AND SERVICES ARE

EXCHANGED

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MARKETS TAKE MANY FORMS

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SCOPE+LOCATION(S)

FORMALITY

+SEASONALITY+TRENDS

SCALE

TIME

STRUCTURE

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SCOPE

CAN DISTANCE TRANSFORM “COMMON” INTO “NOVEL”?

IS THAT GOAL NECESSARY? FEASIBLE?

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LOCAL

REGIONAL

NATIONAL

INTERNATIONAL

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SCALE

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COMMODITY100,000,000 BF/YR

NICHE500 BOWLS/YR

SOME CONSIDERATIONS:-MARKET ENTRY-PROFIT/UNIT-SCALING UP/DOWN

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TIME

© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

0

20

40

60

80

Q1 Q2 Q3 Q5 Q5

Balsam Cedar

SEASONALITY

TREND

Greens

AGGREGATED

DISAGGREGATED

* VALUES ARE NOT REAL

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STRUCTURE

SUPPLIER : (END) CUSTOMER INTERACTION:

DIRECT - (USUALLY) MULTIPLE, DIRECT CUSTOMER CONTACTS (EX: FARMER’S MARKET)

INDIRECT - (USUALLY) ONE OR FEW CONTACTS WITH INTERMEDIARIES (EX: BOUGH BUYER)

MIXED - THESE STRUCTURES CAN BE COMBINED!

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FORMALITY

GOVERNED / LAWS

CONTRACTS

TAXES

RECOURSE

LEGAL

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“NORMS”

TRUST / RELATIONS

“UNDER THE TABLE”

“SELLER/BUYER BEWARE”

LEGAL OR ILLEGAL

FORMAL... ...INFORMAL...

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BUT UNDERSTAND THE HOLISTIC© 2010 REGENTS OF THE UNIVERSITY OF MINNESOTA

OPERATE AT THE SPECIFIC... D. W

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