The word 'Market' was derived in English from Latin word 'Marcatus'. Its meaning is trading or place of transaction. As the word 'Marketing' has been formed from the 'market', it is necessary to be clear about the concept of market in marketing subject.
The following concepts of market can be studied to be clear about the meaning of term 'market'
The following concepts of market can be studied to be clear about the meaning of term 'market'
1. Place Concept Of Market
Generally, the word 'market' refers to the place where buying and selling of goods is performed. The comfortable place, where sellers and customers meet together and exchange goods or services, is called market. Although the word 'market was evolved from the place of transaction, it is used for broad meaning in economics. Nowadays the term 'market' does not represent only a certain place.
2. Commodity Concept Of Market
The commodity concept of market has given emphasis to buying and selling of goods or services. The process of buying and selling of goods or services takes place between buyer and seller is called market. In this way, place is not important in commodity concept of market. It needs commodities or services, buyers and sellers and relation or interaction among them.
3. Exchange Concept Of Market
Exchange concept of market has given emphasis to mutual meeting between buyer and seller and their free relationship. Its premise is that exchange should be voluntary, buying and selling between buyer and seller should be free and the price of same goods should be equal from competition.
To be 'market' this concept has given emphasis to free relationship between buyers and sellers and to equality of price of the same goods from competition. But in practice, always competition cannot be found in all goods and same price for same type of goods . In some products, monopoly of sellers can be found.
The area concept of market is related with exchange concept. This concept of market emphasis to free intercourse between buyers and sellers to fix price of goods for buying and selling. But fixation of price implies in certain area from free interaction between demand and supply. For this it is not necessary to have direct meeting or discussions between buyer and seller. They establish close and regular relationship through different modern communication media and exchange of goods and services.
Market can be studied from the perspective of demand or customer concept. According to this concept, the aggregate demand by potential buyers for any product is market.
Space or digital concept has developed as new technology of market. Nowadays, buying and selling can be performed without direct marketing or interaction between buyer and seller. Because of the increasing use of information technology, buying and selling has become possible between persons, one living in one corner and the other in another corner of the world. The communication media like telephone, telex, computer, Internet etc have made direct contact between customer and seller a minor matter. Worldwide websites have facilitated the customers to know about quality, features, price, terms and conditions etc. of any products of any company living at home.
4. Area Concept Of Market
The area concept of market is related with exchange concept. This concept of market emphasis to free intercourse between buyers and sellers to fix price of goods for buying and selling. But fixation of price implies in certain area from free interaction between demand and supply. For this it is not necessary to have direct meeting or discussions between buyer and seller. They establish close and regular relationship through different modern communication media and exchange of goods and services.
5. Demand Or Customer Concept Of Market
Market can be studied from the perspective of demand or customer concept. According to this concept, the aggregate demand by potential buyers for any product is market.
Human needs are unlimited. When one need has been satisfied, another need appears. So, need satisfaction is a never-ending process. It remains from birth to the end of human life. On the other, human needs remain changing. Today's popular product may be unpopular tomorrow and its demand may decline. So, market is the customers' demand for goods or services. In short, the activities such as contact between customers and sellers, price determination, ownership transfer etc. are the necessary factors for market.
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6. Space Or Digital Concept Of Market
Space or digital concept has developed as new technology of market. Nowadays, buying and selling can be performed without direct marketing or interaction between buyer and seller. Because of the increasing use of information technology, buying and selling has become possible between persons, one living in one corner and the other in another corner of the world. The communication media like telephone, telex, computer, Internet etc have made direct contact between customer and seller a minor matter. Worldwide websites have facilitated the customers to know about quality, features, price, terms and conditions etc. of any products of any company living at home.
In this way, market can be studied from different concepts. According to the above mentioned concepts, there should be buying and selling between buyers and sellers to be market, but it is not compulsory to have direct meeting between them. Contact, buying and selling of goods and services can take place between customers and sellers through different communication media like correspondence, telephone, telex, wireless etc.
