What is a market? Classification & Core elements of (a) market
In this post, we will explore what is a market and how to identify the type. We'll also look at some of the core elements that make up a market as well as some popular types of markets. So let's get started!
In this post, we will explore what is a market and how to identify the type. We'll also look at some of the core elements that make up a market as well as some popular types of markets. So let's get started!
Definitions of market
Common definition
In most cases (including economic), market is a place where commercial dealings are conducted among buyers and sellers who are peoples and organizations. The word "market" can refer to a wet market, supermarket, stock exchange...
Definition of market in marketing
In marketing, a market is a collection of customers, who have needs which can be satisfied by a product/service.
For example: Global smartphone market, US real-estate market, Asian fast-food market..
Classification of market
Markets can be classified into many types based on a certain criteria:
- Monopoly market & monopsony (competitive) market (based on economics models)
- Agricultural market, industrial market, commercial market... (economic areas)
- Food market, clothing market, footwear market, automotive (car) market, stock market... (product types)
- Consumer market & business market (individual buyers & organizational buyers).
- Black market & legal market (legality)
- Offline market & online market (mediums)
- Retail market & wholesale market (methods of distribution)
Now we have a closer look at some popular types of market
What is a monopoly market?
A monopoly market is a market in which there is only one individual/organizational seller providing a certain kind of products/services to many buyers. In such a condition, the seller has a monopoly with no competition from others and has complete control over the products and services.
What is a monopsony (competitive) market?
A monopsony (competitive) market is a market in which there are many sellers providing a certain kind of products/services to many buyers. In such conditions, a seller has to compete with others in order to make a sale.
What is an offline market?
An offline market is a market in which buyers have to go to a physical place (store, supermarket, shop, vendor...) in order to make a purchase.
What is an online market?
An online market is a market in which buyers have to contact sellers by Internet (Website, Social Media, Mobile Applications...) to make a purchase.
What is a retail market?
A retail market is a market in which sellers are also retailers who provide a low volume of goods or services to each customer.
What is a wholesale market?
A retail market is a market in which sellers are also wholesalers who provide a high volume of goods or services to each customer.
Core elements of a market
A market can have basic elements as below:
- Buyers (required): Customers (individuals or organizations) who buy a product/service from sellers.
- Sellers (required): Individuals or organizations who sell goods/services for money in return.
- Exchange items (required): Products (goods), services and money
- Regulators (required in legal markets): Governments, national organizations, international organizations are the ones who regulate and control legal markets by rules, legislations, taxes, quotas...
Frequently Asked Questions (FAQ)
In most cases (including economic), market is a place where commercial dealings are conducted among buyers and sellers who are peoples and organizations. The word market can refer to a wet market, supermarket, stock exchange...
In marketing, a market is a collection of customers, who have needs which can be satisfied by a product/service. For example: Global smartphone market, US real-estate market, Asian fast-food market..
Markets can be classified into many types based on a certain criteria:
- Monopoly market & monopsony (competitive) market (based on economics models)
- Agricultural market, industrial market, commercial market... (economic areas)
- Food market, clothing market, footwear market, automotive (car) market, stock market... (product types)
- Consumer market & business market (individual buyers & organizational buyers).
- Black market & legal market (legality)
- Offline market & online market (mediums)
- Retail market & wholesale market (methods of distribution)
A monopoly market is a market in which there is only one individual/organizational seller providing a certain kind of products/services to many buyers. In such a condition, the seller has a monopoly with no competition from others and has complete control over the products and services.
A monopsony (competitive) market is a market in which there are many sellers providing a certain kind of products/services to many buyers. In such conditions, a seller has to compete with others in order to make a sale.
An offline market is a market in which buyers have to go to a physical place (store, supermarket, shop, vendor...) in order to make a purchase.
A retail market is a market in which sellers are also retailers who provide a low volume of goods or services to each customer.
A retail market is a market in which sellers are also wholesalers who provide a high volume of goods or services to each customer.
