Market
In general economic terms, the market designates that group of people and organizations that participate in some way in the purchase and sale of goods and services or in the use thereof. To define the market in the most specific sense, it must be related to other variables, such as the product or a specific area.
There are various agents in the market that influence each other, giving rise to a dynamic process of relations between them. At the same time, the market is surrounded by various environmental factors that exert to a greater or lesser degree a certain influence on its relations and structures.
Here is a didactic video that introduces the market concept in a simple way.
Market types
Markets can be classified primarily based on the characteristics of the buyers and based on the nature of the products.
According to the characteristics of the buyers, there are the following two types of markets:
1. The Consumer Markets
They are those in which transactions of goods and services are carried out that are acquired by the final consumption units. These markets can be divided into three main types:
- Immediate consumer product markets. They are those in which the acquisition of products by individual or family buyers is carried out with great frequency, generally being consumed soon after their purchase. This is the case of fish, meat, drinks, etc. Durable consumer product markets. They are those in which the products purchased by individual or family buyers are used over different periods of time until they lose their usefulness or are outdated, for example: televisions, furniture, suits, etc. Service markets. They are constituted by those markets in which individual or family buyers acquire intangible goods for their present or future satisfaction, for example: services, laundry, teaching, health, etc.
2. Industrial or institutional markets
They are those in which transactions of goods and services used in obtaining different products that are the subject of a subsequent transaction or that are acquired to obtain a benefit through their subsequent resale are carried out. In other words, industrial markets are those that comprise the products and services that are purchased to serve the organization's objectives.
Taking into account the generic objectives of the organizations, three types of buyers can be distinguished:
- Industrial buyers. They are those that acquire goods and services to obtain intangible products that are subject to subsequent marketing. Example: car companies, etc. Institutional buyers. They are those that acquire goods and services to obtain generally intangible products, most of which are not commercialized. This is the case of universities, armed forces, etc. Industrial intermediary buyers. They are formed by the buyers of goods and services to resell them later or to facilitate the sale of other products. Example: wholesalers, retailers, service companies, etc.
According to the nature of the products, the markets can be classified into:
- Markets for agricultural products and products from the sea, markets for raw materials, markets for technical or industrial products, markets for manufactured products, markets for services.
Other types of market
- Open market
Denomination used to designate the operations of purchase and sale of public funds carried out by the central bank of a country. These operations constitute one of the most important economic policy instruments that governments have to regulate the volume of money in circulation. Exchange Market
Denomination used to designate purchases and sales of foreign currency. There are two main types. Spot exchange market
It is the one in which the foreign currency purchase and sale operations are carried out for delivery and payment at the time or within a few days of being contracted. Futures exchange market
It is the one in which the forex trading operations are carried out for delivery and payment at a previously established future date. Capital market
Denomination used to designate the differences in financial operations that are carried out in the medium and long term and the set of institutions that facilitate the performance of such operations. It comprises two main types: Credit
market This is the market in which financial operations are carried out through loans from banks and investment institutions. Stock market
It is the one in which the financing operations are carried out through the transactions of different securities in the stock market. Coupon Market
Denomination used to designate the operations of contracting subscription rights in the Stock Exchanges. Money Market
It is the market in which short-term financial operations are carried out, generally less than one year. Foreign Exchange Market
Denomination used to designate the set of transactions carried out with foreign currencies between the different delegated banks, to attend to the requests of their corresponding clients. Occasion Market
Expression used to designate those places or establishments where product transactions are carried out, under more advantageous conditions for buyers than in usual establishments. The raison d'être of this advantage may lie in different causes, such as the sale of second-hand products, out of fashion, remnants of stocks, with small defects. Stock Market
Denomination that designates the group of people, public or private entities, related to the issuance, contracting and control of negotiable securities. Foreign Market
Denomination used to designate the different transactions that companies carry out outside their own country. Interior market
Denomination used to designate the different transactions and the organizations that carry them out within the country in which a certain company is located. Black Market
Denomination used to designate the different purchase and sale operations carried out outside the law of a country. This market usually originates as a consequence of the scarcity of a good in relation to the existing demand for it. Potential market
It is the maximum quantity that a product or service can be sold during a given period of time in a market and under certain conditions. This potential market concept is also often referred to as. The potential of the market depends in most cases on the economic situation of the country, as well as the set of commercial actions that the companies that produce and sell a certain asset can carry out. Central Wholesale Markets
These are physical wholesale contracting centers existing in large urban centers, where agricultural, livestock and fishery products are received from the source contracting centers. There are two main types: the traditional central markets or supply markets and the markets of some company.Futures Markets
Denomination used to designate those markets in which products are contracted for future or deferred delivery of the same, at a price previously agreed between the buyer and the seller. Transit Markets
Denomination used to designate those markets located in ports and border crossings, in which transactions of various products are carried out with very varied destinations. Markets at origin
Denomination used to refer to the places close to the agricultural, livestock and fishing production centers, where the first sale of these products is made. There are 2 main types.
- The alhóndigas or corridas. They are generally privately owned warehouses to which the products are brought and to which the buyers go. The transactions are carried out by means of a downward auction with a loud voice. They are premises, generally municipally owned, to which buyers and sellers go to carry out their transactions.
