In the traditional sense, the term ‘market’ refers to the place where buyers and sellers gather to enter into transactions involving the exchange of goods and services. A market is a medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange
But in modern marketing sense, the term market has a broader meaning. It refers to a set of actual and potential buyers of a product or service.
Beginning with the total population, various terms are used to describe the market based on the level of narrowing:
Potential market – those in the total population who have interest in acquiring the product.
Available market – those in the probable market who have adequate money to buy the product.
Qualified available market – those in the available market who lawfully are allowable to buy the product.
Target market – the segment of the qualified available market that the firm has decided to serve (the served market).
Penetrated market – those in the target market who have purchased the product.
Types of Markets
- Physical Markets
- Virtual markets
- Auction Market
- Market for Intermediate Goods
- Black Market etc.
Financial markets are of following types:
- Stock Market
- Bond Market
- Foreign Exchange Market
- Predictive Markets