What is Market?

What is Market?

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: