Market- Defination, Concept, Types, Competition
Table of Contents
What Is Market
Market refers to the physical and virtual location where potential buyers and sellers of a specific item congregate to conduct commercial transactions involving the exchange of goods and services. Individuals, companies, cooperatives. NGOs, and other market participants intervene. They will organize around the law of supply. The number of services and also goods and the specific need customers have for them.
Markets will govern economic and financial rules, which influence availability. Pricing, and exchange frequency. Heancce calls can will find anywhere two or more people exchange goods and services for money.
The various existing markets occupy a central place in the contemporary capitalist world’s social. Political, and economic order, so their impact on people’s lives is direct. It can translate into significant benefits and opportunities or hardship and impoverishment.
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The market concept varies according to the theoretical approach it will view. For example, in the economic field. Ee speak of the market to refer to the set of commercial transactions in a given national or regional environment or the dynamics of said set.
On the other hand, in the marketing or commercialization of a good. It is the total of potential buyers or consumers of a product or service to whom the efforts to promote it are well direct.
At least as we understand them today, the markets originated from the globalization that came to the world during the Renaissance and the beginning of the Modern Age. Characterized by the expansion of European empires and the need to exchange materials with the regions. Far to the east and west.
The establishment of new trade routes. New desirable goods, and the emergence of the bourgeoisie as a new ruling class were decisive and also the Industrial Revolution. The exchange of products raw materials and also the advent of capitalism led to a global and international its like the one existing at the end of the 20th century.
The appearance of the Internet and telecommunications thus created a new market for the consumption of information and technological goods with a worldwide reach, thus tending towards a global market that finally transcends borders.
It classifications usually will propos based on their specific characteristics, and there are generally many classifications. Among them stand out:
Based on your geographical location. We can talk about local, nationwide, regional, and international markets and even worldwide. Based on the nature of the trade. According to the type of product offered, we then speak of the market for goods or services, ideas, or the need for places or real estate.
Wholesale And Retail Market
The wholesaler. Wholesale or large quantity, usually at a lower price. So this type of sale will use other. Distributors to sell on a lesser scale and also add their profit to the new price per unit.
The retailer. Retail or small quantities, usually units. Is the opposite: small-scale sales, generally direct to the final consumer, who consumes a team or a few.
We speak of a market niche to refer to a specific or punctual segment of the demand for a particular good or an area. Which can satisfie one or more companies with minimal competition. A niche can be a specific type of clothing, a particular type of drink, etc.
Product Market Cycle
Every manufactured good goes from side to side a cycle of manufacture and consumption that consists of the following stages:
- Raw material extraction.
- Product manufacturing.
- Distribution of the product to the marketing chain.
- Sale of the manufactured goods and next purchase by the final customer.
- Supply and demand in the market
If there are many providers of good quality or service and little demand for it, prices will tend to fall since those who offer them will want to attract the little demand to their business.
A perfectly competitive market is one in which products compete on quality, but nothing else. Some say that an ideal match does not exist. Because it is a market in which all bidders compete on equal terms for the purchase. Without interventions outside the market, without acts of competitive disloyalty and the need for advertising.
Lacking competition is a single factor external to the dynamics of the marketplace itself intervene. Such as state regulations, monopolies, large advertising campaigns, unfair It strategies, etc. These factors alter the “natural” functioning of the market and favour some over others.
Monopolies And Oligopolies
Perfect competition regimes give rise to monopolies or oligopolies arising. Forms of control and also intervention in the market dynamics exercise one or by a group of producers who interfere and vie in it, to twist its laws in their own right.
In the case of monopoly, a single producer controls the market and also makes it much more difficult for its competition to enter. Hence either by controlling prices, monopolizing spaces. Or having subsidies and other advantages. And also we can download What Is Network Marketing
Given the importance of the market study in the contemporary world. A new branch of research and theorization has arisen, known as marketing. Which attempts to understand its evolution, internal logic and fundamental laws.