Market is the place designated by society where sellers and buyers meet to have a business relationship. A good or service is required to trade, you must have the money and interest to make the transaction. The term serves to refer to that site where products are dispensed, where the person goes to make their purchases and it offers wholesale and retail products. From an economic but formal point of view, this is a more generic, modern concept and more subject to economic platforms in search of positive profit.
What is the market
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This is a term that comes from the Latin mercatus, whose definition is associated with very ancient times, in which merchants held small meetings for interested persons to buy the products they owned and offered for sale. The term is defined as an organization through which both goods and services are managed that will later be distributed to a specific group of people.
Commerce is really nothing more than a location whose organization is rooted in sellers, usually in public locations so that the buyer can go there and obtain whatever is offered by paying a certain amount of money.
Over the years, the concept has evolved, because although bazaars are part of sales locations, there are also digital business relationships, because thanks to technology and the internet, people can buy anything on the web, in addition, market segmentation is quite marked at present, denoting the importance of a commercial organization and the free market worldwide.
Now, there is also the existence of international trade, which is under the responsibility of different organizations due to the high level of protection it needs.
In addition, it is administered in conjunction with the governments of the world, which are responsible for regulating both imports and exports of a given country or nation.
History of the markets
The bazaars had their origin many years ago, when the human being had the need to get ahead and be able to survive, making use of the benefits that nature provided to satisfy the nutritional needs they had through the collection of roots, leaves and fruits., but they also implemented hunting animals for food.
Barter began thanks to the birth of the first divisions and specializations of work in humanity, since primitive man began to realize that he could acquire things, objects and even animals that he could not produce. This was achieved by bartering with other nearby tribes or peoples.
If someone harvested or gathered more food than they needed, they offered the rest to other tribes in exchange for the food they did not have. Then this changed and marketing went from barter to purchases in exchange for money (the amount always depended on the amount of products the buyer wanted and the type of currency according to the country). Currently, both forms of marketing are maintained, but implementing a new one that has been a success in the world: digital commerce.
Digital marketing has had a huge boom for about 10 years to the present, in fact, in many countries different web pages have been created for making online purchases, one of them is the famous free market page, which exists a for each country.
Market types
There are different types of bazaars that, in turn, have their own classification, starting from the financial ones (with that of bonds, capitals and securities); bilateral (captive, gray, black, free, anarchism and labor); and those according to the region they cover (exterior or interior).
Financial markets
They are both physical and virtual spaces in which various exchanges of financial elements take place and which define their own preferences. Financiers are classified into 3 aspects: bonds, capitals and securities.
- Bond market: it is a trade in which people buy and sell debt securities in the bond category. Everything related to bond trading refers to government bonds due to their liquidity, size, lack of financial risk and sensitivity in interest rates, which is why bonds are used to establish changes in interest rates. interest or in the forms of return. During 2006, international bonds were priced at 45 trillion dollars, a remarkable amount compared to the bond market debt, which was estimated at 25.2 trillion. An example of this aspect is the rental bonds.
- Capital market: this is in charge of everything that has to do with the sale of securities. Its objective is to be an intermediary in transactions, in such a way as to channel investors' resources and savings. This aspect is known because it offers investors the benefit of participating as partners in the transactions of large companies; and in companies it qualifies for the benefit of granting them the power to provide part of the capital to a large number of investors, this, with the purpose of financing the expansion of the company.
- Stock market: this operates all over the world and they do business through fixed and profitable structured income, in addition, there is a fixed plan of negotiable values with the purchase and sale of goods in conjunction with the businesses. It also has a place for channeling capital from companies or investors in the medium and long term, which may be to have money or to invest later. A basic example of this aspect is the New York Stock Exchange.
In this aspect there is a single objective and that is to ensure that all negotiations have a place, in addition, it is responsible for promoting the necessary information to promote competition in marketing, in this way, transparency and efficiency is guaranteed. In Mexico, there is a securities market law to regulate everything related to this aspect. An example of this type of trade is bank credit.
Bilateral markets
It is one where a certain group of people generates an externality on a different group through a web page in which everyone stays in contact, to cite an example, one could talk about credit cards, since the groups that cause this type of externalities are buyers and businesses, as this generates a very profitable acceptance on the part of businesses. Another example is video game consoles, since there are certain numbers of people as end consumers and video game programmers.
The more programmers make games for consoles, the more attractive it is to consumers. There are also dating agencies and auction platforms.
The difference between these markets and the common ones (known as the food market, the handicraft market, the market niche, the sea market, or the flower market) is that in the bilateral markets there is a fairly optimal behavior on the websites, which consist of in maximizing the benefits (income) of the groups of people that are part of the platform.
Captive market
It is one in which there are different entry barriers that do not allow competition and end up turning trade into an oligopoly or monopoly and this is the opposite of the free market. Generally, these are made through tariffs, but it is not the only way to do it, since barriers to income can be created with technical specifications, in fact, these are the requirements that companies have to meet in order to work or operate in marketing.
Gray market
It is about the flow of merchandise that companies have through the distribution channels that are authorized by the producer or manufacturer. This differs from the black and gray market because the latter is legal, in fact, it has its own market segmentation. This merchandise can be sold outside of the daily distribution of the company without having a commercial relationship with the manufacturer of the merchandise. This usually happens a lot when the prices of the articles are relatively higher in a country or nation, an example of these merchandise is household appliances, cigarettes, cameras, etc.
Entrepreneurs usually buy products in places where there is a better price but with retail sales, although there are also cases in the wholesale channels, which import merchandise in a fair way and sell it at a lower price to have more customers. The importation of items that are restricted (such as firearms or drugs) are categorized as illegal trade and tend to smuggle merchandise from one country to another in order to avoid paying their respective tariffs.
Black market
It is a type of trade through which both goods and services of illegal production and distribution are exchanged, for example, drugs or certain alcoholic beverages. Each of the actions, transactions or things related to this trade are considered totally illegal and are usually frequent in countries with interventionist laws, which is why a type of market research is always done to verify the origin of the goods. There is a ban on certain goods, but in fact, they are the ones in greatest demand in many nations.
These usually vary according to their nation and are constituted by illegal transactions, in addition, they contain elements that hide from the government each of the actions they carry out, which is why it is considered difficult to implement the scope they have, however, there are appreciations market research that fixes the constitution of 2% of world gross domestic product. Among all the products, goods and services covered by this type of transaction, include medicines, organs, frigates, weapons, currency, prostitution and products related to copyright. All statements are prohibited or limited in most countries in the worldHowever, its production and distribution continue to be in demand, which is why, despite the restrictions and persecution, there are people willing to provide this type of merchandise, fully assuming the risks of the business.
Free market
It is known because it is a method by which the price of goods and services is agreed upon under the consent of sellers and buyers, which is given through the laws established in the offers and demands. This merits free competition so that it can be applied, in this way, the government can control various sources of prices, supplies and production.
If companies controlled these three elements instead of the government, then they would be facing a large monopoly, a legal concession that a company has and which, in turn, allows it to manufacture and control the shops of a product or service exclusively.
Self-regulated markets: In this aspect it is important to mention the self-regulated markets, which are characterized by being a system through which the prices of products, goods and services are established by consumers and the open market, which are regulated by through supply, demand and laws.
That is why it is said that they are totally free from the interventions of the so-called government monopolies. There are other commentators who think that these systems with significant power create inequality of power in the negotiations, so the information is relatively less free. Many maintain that the self-regulated markets make a quite marked contrast with the regulated ones, since in them the government intervenes totally in the offers and demands through different methods, an example of this is tariffs and they are used to make a restriction in trade, in this way, protect its economy.
The prices of these products are set freely according to supply and demand, so the possibility of reaching an equilibrium remains open without the need for government policy to intervene. Some maintain that this type of markets can be regulated, but only if it is necessary to be able to make use of the control of the power of significant commerce, the inequality of negotiating powers or the asymmetries of information, in the latter, the vision that It implies that free marketing is not necessarily unregulated even though there are people who say that both markets are totally similar.
Market anarchism
Here are different aspects of anarchism, since it responds by an economic mechanism whose bases are voluntary and permissible communications without the need for the state to participate. The subjects who call themselves anarcho-capitalists maintain the priority and legitimacy of private property, describing it as an integral element of the individual rights of people and of the free trade economy. But there is a great current in anarchism that does not accept that anarcho-capitalism can be part of the anarchist movement because they consider that anarchism is historically part of the anti-capitalist movement, therefore, these definitions are totally incompatible.
Working market
It is a set of relationships between people who offer a job (better known as employers) and those who seek a job that generates remuneration. This type of market has certain peculiarities that generate differences between the rest, that is, real estate, financial, materials, gray, etc. Especially because it enjoys labor rights, in addition, this is an economic environment in which offers and demands are present.
Here, two different terms are used, the first is the offeror and is defined as the person who is looking for a job and offers to work in different areas according to their ability. The second is known as the plaintiff, who is defined as the person in charge of looking for trained workers to work in specific areas.
Market according to the region covered
It is that market in which different types of transactions are carried out, only it focuses on national and international levels and is governed according to the laws of each country.
- Foreign market: it is nothing more than an environment in which supply and demand meet. Exactly the same terms are handled here, in addition, it is important to emphasize that foreign trade has an objective and that is to satisfy the needs of consumers, in this case it would be the demands, so that all the advantages at a comparative level of every nation that interferes or is included in economic negotiations. The term that encompasses this entire context is international trade.
- Internal market: it is one that works or carries out actions and transactions within the limits of the nation in which it is located, in addition, it is totally surrounded by the largest market of the nation, in fact, the most common case is constituted by the national market, which makes a quite large and notable contrast in international trade.
The importance in this aspect lies in complying with all the requirements of the internal market so that it continues to be an important factor in the different economic doctrines applicable today.
An example of this is the protection of privileges at exclusive levels or the existence of monopolies to have their own products in a region, this happens contrary to free trade, which stipulates that goods that have been produced internally must compete in the same conditions as those that have been produced abroad.
Market economy
This term is defined as the organization, production and consumption of different goods and services that are within the premise of offers and demands, although it can also occur in a competition lacking in perfection, it is right there where the participation of the State begins in a way protagonist to maintain control of those failures that the market may have and, in addition, to guarantee that the consumption of these products is effective.
In this category, state intervention appears when it is imperative to guarantee the goods and services of a country and when it needs to guarantee the rights of the so-called economic agents, so it should not necessarily be included in the free market.
Marketing
This is the study of all the markets that exist in the world in all their classifications and aspects, in addition, it studies the way in which society advances with respect to the commercial movement and the impact that this has generated in current societies.
The etymology of this term comes from the market (place or location where merchants and different people meet as consumers to exchange products in exchange for money or benefits, but it is also conjugated with Tecnia, a term that means technique and the different applications that can be used to function in the functions it has.
Market study
It is a kind of enterprise-level initiative that exists in order to establish a more feasible or commercially accessible route for economic activities. In this study, the responses of both the competition and customers are investigated before publicizing a product or service, in this way it is known if it will be successful or if it is a feasible business.
