What does Market mean? A regular gathering of people for the purchase and sale of provisions, livestock, and other commodities. Market: Definition, Types, and Characteristics, with PPT. A market may be a region, which may be a district, state, country or even the whole world from which buyers and sellers are drawn and not any particular place where they assemble. Explanation of Market: Definition of Market, Types of Market, and Characteristics of Market, with PPT of Market.
The Concept of Market is explaining their points in Definition, Types, and Characteristics.
These consumers of the economy represent the consumption wheel; on the other, production wheel consisting of producers and manufacturers of goods and services rely on marketing to push their goods and services to those who are needing and willing to pay for.
This is the belt of marketing that connects these wheels of production and consumption for mutual benefits. That is, industrial and manufacturing activities have no meaning unless their output is exchanged for money or money’s worth mutually acceptable to both the buyers and sellers. That is, manufacturing and producing is one thing and marketing is another. Left to themselves, they serve no purpose.
That is why marketing is considered much more important than production as it gives a kick-start to the engine of the economy. As an introduction to the topic, there is detailed discussion as the topic suggests. The module ends with Module Based Questions and Module Based Case Studies.
The market, Marketing, and Marketing Management:
To understand the perfect meaning and status of marketing management in the present world, there is a need to understand the meaning and implications of the terms "market" and "marketing". Hence, these three closely related terms are explained below.
What is the Market?
The term "markets" originated from the Latin word "Marcatus" having a verb "Mercari" implying "merchandise" "ware traffic" or "a place where business is conducted". For a layman, the word "markets" stands for a place where goods and persons are physically present. For him, "market" is "market" who speaks of "the fish markets", "mutton markets", "meat markets", "vegetable markets", "fruit markets", "grain markets". For him, it is a congregation of buyers and sellers to transact a deal.
However, for us as the students of marketing, it means much more. In a broader sense, it is the whole of any region in which buyers and sellers are brought into contact with one another and by means of which the prices of the goods tend to be equalized easily and quickly.
#Meaning of Market:
In common parlance, by the markets meant a place where commodities are bought and sold at retail or wholesale prices. Thus, a market place is thought to be a place consisting of a number of big and small shops, stalls and even hawkers selling various types of goods. In Economics, however, the term “Markets” does not refer to a particular place as such but it refers to a market for a commodity or commodities.
It refers to an arrangement whereby buyers and sellers come in close contact with each other directly or indirectly to sell and buy goods. Further, it follows that for the existence of a market, buyers and sellers need not personally meet each other at a particular place. They may contact each other by any means such as a telephone or telex.
Thus, the term “Markets” is used in economics in a typical and specialized sense. It does not refer only to a fixed location. It refers to the whole area of operation of demand and supply. Further, it refers to the conditions and commercial relationships facilitating transactions between buyers and sellers. Therefore, a market signifies any arrangement in which the sale and purchase of goods take place.
The Concept of Market explain by basic PPT:
#Definitions of Market:
Cournot’s definition, the French economist Cournot defined a market thus:
"Economists understand by the [Market] not any particular market place in which things are bought and sold but the whole of any region in which buyers and sellers are in such free intercourse with one another that the prices of the same goods tend to equality, easily and quickly."
This definition of the market brings out the following essential points:
- A market may be a region, which may be a district, state, country or even the whole world from which buyers and sellers are drawn and not any particular place where they assemble.
- There must be business intercourse among the dealers, i.e., buyers and sellers. They must be in touch with one another so that they are aware of the prices offered or accepted by other buyers and sellers.
- The same price must rule for the same thing at the same time.
Some more Author's by modern definitions of the market are as follows:
According to Jevons,
"Originally a market was a public place in a town where provision and other objects were exposed for sale, but the word has been generalized so as to mean anybody or persons, who are in intimate business relation and carry on the extensive transaction in any commodity."
As Chapmen has said,
“The term market refers not necessarily to a place but always to commodity or commodities and the buyers and sellers of the same who are in direct competition with each other.”
According to Prof. Behham,
“We must, therefore, define a market as an area over which buyers and sellers are in such close touch with one another either directly or through dealers that the prices obtainable in one part of the market affect the prices in other parts.”
From the above definitions following facts may be noted:
- The existence of a commodity. For example, The markets for gold or silver, cotton, wheat, and rice etc. Thus, there will be as many markets as are commodities and if there be several types or variance of a commodity, then each type or variety will have a separate market of its own.
- That there be buyers and sellers who are in touch with one another either through post, telegraph, telephone or through middlemen.
- That there is perfect competition among buyers and sellers so that through such competition, the price of the commodity in question is influenced.
#Types of Market:
The seller sells goods and services to the buyer in exchange for money. There has to be more than one buyer and seller for the markets to be competitive. It refers to the whole area of operation of demand and supply. Learn and understand the four Key Indicators of Marketing Efficiency. Further, it refers to the conditions and commercial relationships facilitating transactions between buyers and sellers.
The following types below are:
- Physical Markets.
- Non Physical Markets/Virtual markets.
- Auction Markets.
- Knowledge Markets.
- The markets for Intermediate Goods.
- Black Markets, and.
- Financial Markets.
A set up where two or more parties engage in the exchange of goods, services and the information, as well as called a market. Ideally, a market is a place where two or more parties are involved in buying and selling. The two parties involved in a transaction are called seller and buyer.
#Features/Characteristics of Market:
The essential features/characteristics of a market are as follows:
- Buyers and Sellers.
- Perfect Competition.
- One commodity.
- One Price.
- The relationship between Buyers and Sellers.
- Perfect Knowledge of the Market.
- Sound Monetary System, and.
- Presence of Speculators.
Understand by classification of the market:
- These markets specialize in selling mass consumer durable and nondurable products and services devote a good deal of time in an attempt to establish a superior brand image.
- These items may be shoes, apparels, clothing, household items like television, sound system, washing machines, fans, on one hand and tea, coffee, tea powder, coffee powder, biscuits, bread spreads, dental cream, personal care beauty-aids, rice, wheat, oat, gourmet mixes and so on the other.
- Much of the brand’s strength rests on developing a superior product and packaging, ensuring its availability and backing with engaging communications and reliable service.
- This task of image building is really ticklish as the consumer market goes on changing its color over the period of time.
- This is a market of business buyers and sellers. Business buyers buy goods with a view to make or resell a product to others at a profit. Therefore, business marketers are to effectively demonstrate as to how their products will help the buyers in getting higher revenue or lower costs. Therefore, companies selling business goods and services often face well-trained and well informed professional buyers who are skills in evaluating competitive offerings.
- These markets deal in raw-materials, fabricated-parts, appliances, pieces of equipment, supplies, and services that become the part of end products of the business consumers.
- Advertising plays its due role. However, personal selling has the upper hand. Product price, quality, and business suppliers’ reputation have a significant role.
Global markets consist of buyers and sellers all over the world. The companies selling goods and services in the global markets place play global gain involving decisions and challenges.
- To be successful, they must decide as to which country to enter?
- How to enter each country?
- That is, as an exporter, license partner of a joint venture, contract manufacturer or only manufacturer, how to adapt their product and source features to each country?
- How to price their products in different countries?
- And, how to adapt their communications to different cultures of various countries?
These decisions are to be made in the face of differing requirements for buying, negotiating, owning, and disposing of property under different culture, language, and legal and political systems; and the foreign currency that is subject to fluctuations having its own implications. It is needless to say that these goods and services both consumer and industrial or business.