Definition of the market

Definition of the market



Contents

  • 1 Definition of the market
  • 2 The concept of the market has evolved
  • 3 Administrative market characteristics
  • 4 types of markets
  • 5 market segmentation
  • 6 The effect of the market on the economy
  • 7 References

Definition of the market

Market (English: Market) is the real or virtual place where demand and supply operations are applied. It provides an interaction between sellers and buyers in order to provide services and sell goods for barter or money . [1] The market is also known as the area or region in which business operations occur by having a meeting between people and dealers in one place. [2] Another definition of the market is that it is the place where goods are brought in to buy and sell. [3]

The concept of the market has evolved

The emergence of the concept of the market was associated with the development of economic activities and trade operations resulting from the division of business, so man relied on production to satisfy his needs within the unity of the family and the small community, and with the passage of time the human productive capacities increased, which led to the emergence of a surplus in the economy that contributed to discovering the concept of barter ( Swap) between commodities before using money in the advanced stages. [4]


The emergence of commercial thought contributed to the increase in commercial exchanges dependent on buying and selling, which led to the transformation of markets into a basic base in the economic system , and production became dependent on the nature of consumers' desires and prices offered in exchange for access to products, and as a result, an evolution in the markets contributed On reaching her well-known condition at this time. [4]

The Arabs were distinguished by the presence of their own markets, as they relied on their trade for travel between different parts of the world, by benefiting from the special geographical location in the Arab world , which contributed to turning it into a region where commercial caravans coming from most of the world’s lands, including Persia and Rome, would converge. [4]

Administrative market characteristics

The market is distinguished by a number of administrative characteristics, including: [5]
  • Attention to customer orientation : It is important that all activities in the market are directed towards achieving customer satisfaction, by taking care of their needs and desires, while keeping the business business in the right way.
  • Promote marketing research : It is one of the means that helps in formulating a program to keep pace with developments in the market, through the use of creativity and innovation in order to provide products that match customers' demands.
  • Marketing planning : It is the means associated with the general goal of commercial companies, which depends on the need to obtain profits through customers and consumers. Based on this goal, the marketing and planning policies are directed towards establishing a philosophy for dealing with consumers.

Types of markets

The forms of the markets are varied and numerous, the most important of which are: [6]
  • The Complete Competition Market: It is the market that applies a system that contains many traders and consumers, and is defined according to the classic theory as the market that depends on the presence of an infinite number of traders and consumers, and with a large number of influences on the market it becomes impossible to change the prices of services and commodities prevailing in it .
  • The monopoly market : It is the market that does not depend on the existence of any competition, as it is different from the market for complete competition, because it depends on the role of complete monopoly for a specific service or product, and in this type of market the monopolist is able to provide products whatever their price is due to the absence of Competition, but the monopoly market suffers from a lack of revenue, due to the limited or unwillingness of customers to deal with this market.
  • Oligopoly market: it is a monopolistic market that provides a similar idea to the monopoly market, but it differs from it in terms of the number of monopolists, as it is not based on a monopoly on a specific service or commodity, but rather depends on the presence of more than one company or dealer who monopolize that commodity, and they form the majority in the market, whether They are among the producers or suppliers of the commodity, and the lack of the ability to control the monopolists in prices such as the monopolistic market, due to the existence of government regulation and control that contributes to determining the prices of products and services within the market.
  • Monopolistic competition market: It is a type of market that combines the market of full competition and the monopoly market, and the monopolistic competition market contains a group of competitors, but each competitor differs from others in terms of its own characteristics, but they monopolize or work in one field, such as monopolistic competition Among artistic production companies for the monopoly of artists.

Market segmentation

Market segmentation ( in English: Market Segmentation) process aims to divide the market into a set of parts and sectors; for easy identification of their needs and characteristics, and contribute to these retail access to match expectations for customer, by targeting a number of facilities in order to provide products in market. [7]

Market segmentation depends on a group of sectors, the most important of which are: [8]
  • Geographical segmentation: is the distribution of companies in the work environment on a geographical basis, and this segmentation is beneficial to companies because it helps in defining market sectors based on climate, language and lifestyle.
  • Demographic segmentation : is the division of the market into groups on variable bases, such as income ratio, education , profession, and age groups.
  • Behavioral segmentation: It is the distribution that depends on the customers' knowledge of the nature of the products and the ways in which they are used.

Market impact on the economy

The market positively affects the economy of countries, as it contributes to promoting exchange of services and goods between individuals in exchange for paying money, in order to reorient the investment towards economic sectors that are characterized by high demand for their products, which leads to achieving a balance between supply and demand, but may The private economy in the market produces a set of social and economic imbalances, including unemployment and poverty , and also the failure of the market sometimes leads to defects in the outputs of the economy. [4]

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