Meaning of Market (What is, Concept and Definition)

What is the Market:

The market is a entity that relates the individual seeking with the individual offering a product or service and a set is made of transactions being determined by the law of supply and demand.

The term market is of Latin origin " mercatus" which means "market, traffic", the word market is derived from "mercari" that expresses "buy".

For a better understanding of the market term, two important concepts must be clarified: the offer is the quantity of goods and services that sellers are willing to offer at a certain price, in turn, demand is the express formulation of a desire that is conditioned by the available resources of the individual or entity seeking a good or service.

See also Supply and Demand.

In the same way, market is the physical or virtual place where sellers and buyers come together for i Exchange between them varied merchandise.

The price of a merchandise is fixed in the market through the free concurrence of supply and demand.

See also the Law on the supply and demand.

However, at the beginning the market consisted of bartering, that is, action of giving one thing in exchange for receiving another without the intervention of money, then with the appearance of money I create other economic systems.

See also Plusvalia.

Market in economy

Market economics is a system of economic organization in which natural factors ensure regardless of government intervention or monopoly, the balance of supply and demand.

The ideal market is known as perfect competition, that is, the pricing of a product or service is the result of the reciprocal interaction of supply and demand, therefore, for this to exist, the following elements must be given: high quantity Deity of demand and supply, homogeneity of the products offered by sellers, transparency in the market, freedom of entry and exit of companies in the markets, free access to information and resources, the enjoyment of the benefits granted by the market by same between sellers and buyers.

In reference to the above, the existence of monopoly, oligopoly, what is known as imperfect market competition is what the ideal market does not allow, since a large Producer or a market made up of a small group of sellers have the power to set the price of products or services.

See also Monopoly.

Within the market there is the market concept potential, which refers to those people and institutions, which may have some need that can be met in a market, that is, are those people to whom a product, good or service can specifically be directed.

Market of Securities-Financial

It is a type of capital market that serves to establish both fixed and variable income negotiations, through purchase-sale operations focused on any type of value that can be traded.

The financial market is a place, mechanism or electronic system where financial assets, products and instruments are traded and a public price of the assets is set for the interaction of supply and demand.

Wholesale market

It consists of the sale of complete product ranges to both companies and consumers, in large quantities.

Retail or retail market

En the one that sells directly to the consumer and in small quantities.

Direct market

It is characterized in that the bidders and claimants have to locate each other.

Intermediate market

Their function is the purchase of products and the resale or promotion and sale of products to consumers.

Labor or labor market

It is characterized by a group of employers in search of paid jobs and regulated by a contract, collective bargaining agreements or other modalities.

Black and legal market

The black or illegal market consists of the traffic of prohibited goods at prices other than the legal market.

The black market arises in times of crisis or periods of control by part of the government of a country, that is, when there is evidence of a shortage of essential products the government must ration the sale of these products and establish price controls, therefore, due to this situation, sellers are willing to violate tax laws and obtain a higher profit since they can sell a product twice , triple or more than what is found in the legal market and, buyers in view of the shortage and the need to obtain the product have no other option but to buy it.

In contrast to the black market, it is The legal market refers to products and services regulated according to the price, taxes, rates established by the government of a country.

In the marketing area, the market is a group of individuals or current consumers and potentials that use a product or service to meet their own needs, crossing the interests of those who seek with those who offer, that is, supply and demand.

See also Marketing.

Target Market

The target market or target refers to the recipient of a product or service, in the marketing area it is to whom an advertising is directed.To carry out a target market, the marketing must study the market, specifically the consumer behavior and, in this way segment the market, select it and choose the type of advertising suitable for positioning the product.

Internal and external market

The internal market, known as internal trade, it is characterized in that said trade takes place between plaintiffs and suppliers of the same nation, so they are regulated by the same commercial laws.

Instead, the external market, known as international trade, It is the set of exchanges of products and services between foreign countries so these transactions are regulated by international standards, treaties, agreements and conventions.