Market Definition

The market is a set of process transactions or exchanges of goods or services between individuals, which reach an agreement between the product or service and the price charged for it.

The market works by the relationship that exists between supply and demand, that is, the price of products and services determine by the offer that the various providers make and what is the need by consumers of said goods and services, concluding that the lower the demand, the higher the supply and the higher the market, the lower the collection.

The Market of Services and Goods

The Market of Services and Goods
It refers to all transactions between individuals and companies whose purpose is to purchase and sell tangible, intangible products or services. It classifies into four categories:

Wholesale market: It consists of the sale of large quantities of products to both companies and consumers. Generally, wholesale market transactions take place between product-producing companies and distributors.

Retail or retail market: It sells directly to the consumer and in small quantities.

Intermediary market: its objective is the purchase of products for later resale.

Types of Market in Economics

There are three classic classifications of market types according to the sector of the economy in which they locate:

Stock market – financial

It is a type of capital market used to establish fixed, and variable income negotiations through purchase-sale operations that focus on any value that can negotiate.

Assets, products and financial instruments trade in the financial market, and the interaction of supply and demand sets a public price of assets.

See also:

  • Offer
  • Law of supply and demand.

Lab our or job Market

They are the relationships established between job seekers and a group of employers who demand specific professional profiles for their companies or projects.

Depending on the country, the lab our market delimit by laws that establish relevant aspects such as minimum wage, agreements and benefits for workers, number of work hours allowed, etc.

The Market for Factors of Production

On the other hand, in the market for factors of production, productive factors such as raw materials, capital and lab our exchanges. Then, the companies combine these factors to carry out their productive tasks.

Of course, in the case of the lab our market, the suppliers are the individuals and families who sell these factors of production and charge a price for them. At the same time, the companies work as the plaintiffs since they are willing to pay a fee to obtain the factors of production.

The markets for factors of production can therefore divide into three:

Consumer of Markets

They are those in which goods and services acquired by the final consumption units carry out. These markets can divide into three main types:

  • Markets for immediate consumer products: They are those in which the acquisition of products by individual or family buyers carries out with great frequency, being generally consumed shortly after their purchase. This is the case of fish, meat, drinks, etc.
  • Durable consumer goods markets: They are those in which the products purchased by an individual or family buyers uses over different periods until they lose their usefulness or outdate, for example, televisions, furniture, suits, etc.
  • Service markets: They constitutes those markets in which individual or family buyers acquire intangible goods for their present or future satisfaction, for example, services, laundry, education, health, etc.

Industrial or Institutional of Markets

They are those in which transactions of goods and services use to obtain different products carry. It’s out that the object of a subsequent transaction acquires to get a profit through their subsequent resale. In other words, industrial markets comprise the products. Its services purchase to serve the organization’s objectives.

Taking into account the generic objectives of organizations, three types of buyers can distinguish:

  • Industrial Buyers: They acquire goods and services to obtain intangible products subsequently market—for example, car companies, etc.
  • Institutional Buyers: They acquire goods and services to obtain generally intangible products that are not commercialised. This is the case of universities, armed forces, etc.
  • Industrial intermediary buyers: They are made up of buyers of goods and services for later resale or to facilitate the sale of other products. Example: wholesalers, retailers, service companies, etc.

Advertising and Marketing

The market works by the relationship that exists between supply and demand, that is, the price of products. Its services determine by the offer that the various providers make. what is the market, by consumers of said goods and services? It’s concluding that the lower the demand, the higher the supply and the higher the order, the lower the supply.

In general economic terms, the market designates that group of people and organizations that participate. Its purchasing and selling goods and services or their use. Defining the market in the most specific sense must relate to other variables, such as the product or a particular area.

Various agents influence each other in the market, giving rise to a dynamic relations process. At the same time. Its a market surrounding by several environmental factors that exert. It is a greater or lesser degree, a particular influence on its relations and structures.

Conclusion

The market designate by a society where sellers and buyers meet to have a business relationship. The term refers to that site where products are dispensed. It is where the person goes to make their purchases, and it offers wholesale and retail products. A good or service requires to call. You must have the money and interest to complete the transaction. From an economical but formal point of view. It is a more generic, modern concept and more subject to economic platforms in search of positive profit.

Also Read: Initial Coin Offering – Definition, Types, Characteristics, and More 

Review Market – Definition, Services, Good, Types and More.

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