What is the meaning of Market? Concept, Definition of Market (1)
Concepts and meanings of market
Meaning of market
To delve into the fascinating field of marketing need to know before the response of a basic but fundamental question: what is market?:The market is the set of 1) actual and potential buyers who have a particular need or desire, money to meet it and willingness to do so, which constitute 2) vendors that offer a particular product to satisfy the needs and/or desires of buyers through Exchange processes which constitute the offer and the demand. Both supply and demand are the main forces that move the market.
Broken down this answer in simple terms, we would say that the market:
1 Is a group composed mainly of two elements: the supply (buyers) and demand (sellers). Both are the two forces that move the market. However, they must meet certain requirements. In the case of demand, should be composed of actual and potential buyers who have a particular need or desire, economic capacity to satisfy it and willingness to buy. In the case of the offer, you must have a product (either tangible service, lugger, idea) that meets the needs of the buyers.
2 Is a place (physical or virtual) that produce Exchange processes, for example, a X product in exchange for a certain amount of money.
Market concept
In a general sense, the market is a physical or virtual (as in the case of the internet) where two forces that generate processes of Exchange are: 1) the 'offer' and 2) "demand".In a more specific sense, the market has some features and additional elements, that to know them, it is necessary to respond to a basic and elemental question:
What is the concept of market from a marketing perspective?
To answer this question, nothing better than go to the concepts provided by knowledgeable in issues of marketing, to then obtain a conclusion that brings together those features and most important elements of the market.
Concept of market, according to marketing experts:
• For Laura Fisher and Jorge Espejo, authors of the book "Marketing", the market are "the consumers real and potential of a product or service". Complementing this concept, both authors mentioned that there are three very important elements:
1. The presence of one or more individuals with needs and desires to satisfy.
2. The presence of a product that can meet those needs.
3. The presence of people who make products available to individuals.
• Philip Kotler, author of the book "Marketing management", says that the concept of Exchange leads to the concept of market. In this regard, "a market is formed by all potential customers who share a need or specific desire and who might be willing to participate in an Exchange that meets this need or desire". Thus, the size of the market, at the discretion of Kotler, depends on the number of people who express the need, have the resources that are of interest to others and are willing to offer them in exchange for what they want
• For its part, Ricardo Romero, author of the book "Marketing", believes that the most common concepts that have market, are the following:
1. Place where buyers and sellers, gather offers goods and services for sale and transfers of property titles are performed.
2. Aggregate demand generated by potential buyers of a product or service.
3 People with needs to meet, spend money and spend it.
In synthesis, the concept of market focus to the latter as "every place, physical or virtual (as in the case of the internet). where there is on the one hand, the presence of buyers with needs or specific to satisfy desires, to spend money and willingness to participate in an Exchange that meets this need or desire And on the other hand, the vendors who seek to satisfy those needs or desires through a product or service. Therefore, the market is the place where there are transfers of property titles."
Definition of market
In practice, each person has a definition of what is the market based on what seems best to you or should you, for example, for a shareholder market is related to the values or capital; for a housewife, the market is the place where you get the products you need; from the point of view of the economy, the market is the place where gather offerers and plaintiffs and is where the prices of goods and services are determined by the behavior of supply and demand.However, people who are involved with different marketing activities need a more precise answer to the question: what is the definition of market?
Definition of market, according to experts in the field:
• Stanton, Etzel, Walker, authors of the book "Foundations of Marketing", defined the market (for marketing purposes) as "people or organizations with needs that satisfy, money to spend and will spend it".
• For Patricio Bonta and Mario Farber, authors of the book '199 questions about Marketing and advertising', the market is "where supply and demand converge. In a narrower sense, the market is the set of all actual and potential buyers of a product. "For example: the market for cars is formed not only by those who have a car but also by those who would be willing to buy it and have the means to pay its price".
• Allan L. Reid, author of the book "Las techniques modern sale and its application", defines the market as "a group of people who can buy a product or service if you wish".
• To Philip Kotler, Gary Armstrong, Dionisio Cámara and Ignacio Cruz, authors of the book "Marketing", a market is the "set of actual and potential buyers of a product. These buyers share a need or a particular desire that can be met by an exchange relationship".
• From the perspective of the Economist Gregory Mankiw, author of the book "Principles of Economics", a market is "a group of buyers and sellers of a particular good or service." "Buyers jointly determine the demand for the product, and the sellers, the offer".
• According to the dictionary of Marketing, Cultural S.A., the market are "all potential consumers who share a particular need or desire and who may be inclined to be able to participate in an Exchange, in order to satisfy this need or desire".
• For its part, and it is worthwhile to take this into account, the dictionary of the Royal Spanish Academy, in one of its definitions, mentions that the market is the "set of consumers able to purchase a product or service".
At this point, and taking into account the previous definitions, consider the following definition of market (for marketing purposes):
The market is the set of 1) actual and potential buyers who have a particular need or desire, money to meet it and willingness to do so, which constitute 2) vendors that offer a particular product to satisfy the needs and/or desires of buyers through Exchange processes which constitute the offer and the demand. Both supply and demand are the main forces that move the market.
Definition of market
In economic terms, told market to the stage (physical or virtual) where a regulated set of transactions and exchanges of goods and services between parties takes place purchasers and parts sellers that implies a degree of competition among the participants from the mechanism of supply and demand.There are various types of markets: as retailers or wholesalers, raw materials and the of intermediate products, and also the markets of shares or stock exchanges.
Throughout history have been different types of market: the first functioned through barter, i.e. the direct exchange of goods through the valorisation of the same. With the emergence of the cash (coins and banknotes) is resulted in transactions through codes of Commerce at the national and international levels, through communications and increasingly complex intermediaries.
A market of free competition is ideal when there are so many interrelated economic agents that none can interfere with certainty about the final price of a good or service, and then says that the market is self-regulating.
When there is (a single producer) monopolies or oligopolies (reduced number of producers) system voltage enters and is called imperfect competition market, since producers are large enough to have an effect on prices.
Perfect competition market not only boasts a large number of sellers and sellers that prevent the influence of each in the final price, also has homogeneity of the product, market transparency, freedom of entry and exit of companies, free access to information and resources and benefit equal to zero in the long term.
When the market fails to achieve economic, by case efficiency, because the provision that makes for a good or service is not efficient, said there is a "market failure".
Market concept
In the latin, and more exactly in the mercatus term, is where we find the etymological origin of the word market now occupied by us. This a term that is used very often in today's society to refer to all the public site which, in the established days, comes to buy or sell various products.An example of what we have emphasized would be as follows: "Marta today plans to hold a dinner at his home with many guests by what has come to the market to buy the best fish and most exquisite meats and so surprise to those".
To investigate the definition of market and evaluate the function that this word has in everyday language, it is possible to reach the conclusion that this concept describes the scope, either physical or virtual, in which the necessary conditions for exchanging goods and/or services are generated. You can also be understood as the organization or entity that allows you to providers (sellers) and (buyers) plaintiffs establish a commercial link in order to perform operations of various kinds, agreements or exchanges.
It should be noted that the market makes its appearance as a result of the union of sets composed of sellers and buyers, allowing is to articulate a system based on supply and demand.
The first markets that appeared in the history of mankind had to barter as the base method. With the massification of the money, they began to develop other trade codes. In turn, the increase of the production generated the appearance of intermediaries between producers and final consumers.
The economy, as he warns to delve into the scope and characteristics of the market, contemplates the existence of different kinds of markets: there are some that are conducted at the retail or retail; others who are at the wholesale or wholesale; ones that are called material raw and there are even others who are known as equity (stock) markets, for example.
Markets all of them that they would come to rely on another of the meanings more used the word that we are dealing with. In particular, we are referring to that definition that identifies market with the Group of activities and commercial transactions carried out in one or several economic sectors.
In this sense, we could expose several examples like this that we express the following: "agricultural market is currently experiencing a very difficult situation since its various products have been affected in irreparable way by the prevailing drought".
The ideal perfect competition market is achieved when neither buyers nor sellers have the ability to interfere with the final price of the good or service exchanged. This system is affected at the time of the emergence of monopolies uoligopolios which fix the prices of its own volition.
Therefore, for imposing a market with perfect competition requirements must be met as the presence of a considerable number of sellers and consumers (will where the actions of each of the parties have little influence in the global market), the homogeneity of the product (all offered goods are equal), the existence of transparency (those involved are aware of the General conditions governing the market) and free access to information.
Finally we have to refer to a very common expression that uses the word that concerns us as an integral part. It's black market, which comes to define hidden or illegal traffic that occurs of banned goods or which do not abound and can be purchased to completely different prices to those that exist at that moment in the legal market.
What is market
From the latin "mercari", the market word means buy, and applies to the operations of purchase and sale of goods, regulated as a commercial activity.In Rome every nine days took place a feast called market day, which took place in the Forum, where flocked peasants to carry out the exchange of their products.
The market is a social deorganizacion that allows the exchange of goods or services for money, although the first commercial exchanges were made through the Exchange or barter. We speak not only of market when we buy and sell things, as it is the case with the fruit and vegetables market, real estate market, automotive market, the textile market, etc but there is a labour market, a mercadofinanciero, among others. The market may be national, within the boundaries of each State or international when it occurs between countries.
Also market the demand for a good or service can be called. In this sense refers to a market study to know potential clients of any goods destined for sale, to know if the launch of our offering to the public (when you put our product on the market) will take buyers.
There are markets for free competition where the game of supply and demand is unrestricted, and the competition is full, and others dominated by a single vendor (monopoly), or few (oligopoly), eliminating free competition.
Black market is one where the operations of purchase sale are performed illegally.
Meaning of market
The market word refers to the environment or scope, of great influence in the economy, where they develop the economic activities of buying and selling of products and services, i.e. the exchange of the same. Therefore, the producer tries to meet the needs of the buyer, selling things that it want or need, a lucrative purpose (the get the possible mayorganancia). Inside the market, there is lacompetencia by obtaining the gain among those who dealt with the same product or service; This competition helps to regulate the prices of what you wish to sell.The two fundamental forces that decide the price of the products and services of the market are supply and demand; When there is much supply and little demand prices down, while if there is high demand and low offer prices rise. For example: many people want to buy meat, but there is little production of the same, this becomes very high prices; While if nobody needs meat, but there is nevertheless much production, the price of the same low.
In markets first products passed from one person to another through barter, which ended when he began to use money. Currently the sale is usually done through intermediaries, through physical or virtual, having different types of markets, specific to the needs of the consumer; among them we could appoint as examples the wholesale markets, markets, retail, and markets dealing with raw materials.
Definition of market
The market is the place where society where buyers and sellers meet to have a commercial relationship, to do this, requires a good or service that market, a payment made in money and interest to carry out the transaction. Popularly, the word market serves to make reference to that place in which are dispensed products, where the person is going to do their shopping and this offers products wholesale and retail, according to this common concept, the word comes from the latin 'Mercatus' since in antiquity already performed these traders waiting for meetings to customers to buy what you need.From an economic but more formal point of view, we have a more generic, modern concept and more subject to economic platforms in search of positive profit. The market is the organization that handled goods and services to be distributed in a given mass of people, this is if you want to say in a simple way, administering the market area of dispensers that are public sites which the buyer attends to opt for what they want, noteworthy that the concept of market has evolved in recent years with the advent of technology and the internet, thanks to this, new roads have been opened to commercial relationships.
The international market is managed by organizations of greater projection, in conjunction with government agencies that regulate imports and exports to the country. Purchase and sale of goods and services systems have evolved in society, starting with step of barter (exchange thing thing) by payment in coins of gold or silver, with electronic banking currently there is virtual money, which represents an extra security for the market, this procedure transfers sums of money between bank accounts of the buyer and seller directly without charges in cash with him.
The market is studied and evaluated by agents who are studying careers University courses: marketing, marketing, marketing, banking, economics, accounting, business administration, business administration, among others.
Meaning of market
Market, in economics, is any set of transactions or agreements of exchange of goods or services between individuals or associations of individuals. The market does not direct reference to profit or companies, but simply to mutual agreement within the framework of the transactions. These may have as participants to individuals, companies, cooperatives, NGOs, etc.The market is also the social (or virtual) environment that conducive conditions for the Exchange. In other words, it should be interpreted as the institution or social organization through which the bidders (producers and sellers) and applicants (consumers or buyers) of a particular type of good or service, come into close commercial relationship in order to make abundant commercial transactions. Early history markets functioned through barter. After the appearance of money, began to develop commercial and family that ultimately gave rise to the modern national and international companies. As production increased, communications and brokers began to play a more important role in the markets.
A definition of market according to marketing: organizations or individuals with needs or desires that have capacity and that are willing to buy goods and services to meet your needs.
Types of markets
Markets can be distinguished between different kinds of markets at the retail or retail markets at the wholesale or distributors, web markets, intermediates, raw materials markets and equity (stock) markets.The market term is also used to refer to the estimated or potential consumer demand.
The classical concept of free competition market defines a type of ideal market, which is such the amount of interrelated economic agents both buyers and sellers, that none of them is able to modify the price (perfect competition), will be different from which is generated in a market where there are a small number of sellers oligopoly. As case end, where the competition is non-existent, stands one in which the market is controlled by a single producer (monopoly). In either of these situations you should be that producers shared the market with plenty of buyers, with few or one only.
In response to the number of people participating in the market or competition level, they can be classified in:
• Perfect competition markets
• Imperfect competition markets
Market and perfect competition
Not all markets are efficient in the sense that not in all of them there is so-called technical conditions of perfect competition. Markets efficient or perfect competition are those in which it is assumed that there are as many sellers as buyers of the same good or service that none of them, acting independently, can influence the determination of the price and that this in turn is given and is fixed by the same forces of the market.Perfect competition is an idealized representation of the markets of goods and services in which the reciprocal interaction of supply and demand determines the price. A perfect competition market is one in which there are many buyers and many sellers, so any buyer or seller individually exercised decisive influence on the price. To make this happen, you must meet these seven elements:
1. Existence of a high number of bidders and applicants. Of each individual decision will exert little influence on the global market.
2. Homogeneity of the product. There are no differences between the products that the suppliers sell.
3. Transparency of the market. All participants have full knowledge of General conditions in which the market operates.
4 Freedom of entry and exit of enterprises. All the companies, when they wish to do so, may enter and exit the market.
5. Free access to information.
6. Free access to resources.
7 Benefit equal to zero in the long term.
The essence of the perfect competition is not referred both the rivalry and the dispersion of the ability to control economic agents can exercise on the brand on the market. When it violates or does not comply with any of the requirements for perfect competition market failure occurs.
Imperfect competition markets
Imperfect competition markets are those in which goods and producers are the large enough to have a noticeable effect on the price. There are several models of this type of market including market monopolistic and oligopolistic models. There are also markets where a buyer has enough market share to influence the price that kind of markets, an example of that type of markets are the oligopsony and the oligopsonios.The fundamental difference with perfect competition markets lies in the ability that companies offering control in price. In these markets, the price is not accepted as an alien figure, but that providers are actively involved in their determination.
In general, it can be said that higher to get the number of participants, more competitive market will be.