The development of a market study is important when preparing the launch of a product.
A market is a public place where, on established days, various products are bought or sold. The etymological origin of the term is found in the Latin mercatus .
For example: «Today Marta plans to have a dinner at her house with many guests, so she has gone to the market to buy the best fish and the most exquisite meats and thus surprise those» , «In the town square there is a market which works every Saturday» , «Look at the crafts I bought at the market in front of the lake» .
What is a market
The concept of market describes the area, whether physical or virtual, in which the necessary conditions are generated to exchange goods and/or services .
It can also be understood as the organization or entity that allows offers ( sellers ) and demanders ( buyers ) to establish a commercial link in order to carry out operations of various kinds, agreements or exchanges.
Historical development
It should be noted that the market appears as a result of the union of groups composed of sellers and buyers, which allows a system based on supply and demand to be articulated.
The first markets that appeared in the history of humanity had barter as a basic method. With the spread of money , other commercial codes began to develop. In turn, the increase in production generated the appearance of intermediaries between producers and final consumers. An example of this development is the supermarket , which brings together the offer of multiple producers.
Currently, physical money is not necessary to carry out operations in the market. There are electronic payments and even cryptocurrencies (such as Bitcoin ) to pay for each transaction.
International trade involves the development of a market where the import and export of goods and services takes place.
Types of markets
The economy , as seen when delving into the scope and characteristics of this institution, contemplates the existence of various types of markets: there are some whose operations are carried out at retail level; others that are wholesalers or wholesalers ; and some that are called raw materials , among many others. The stock or stock market can also be mentioned, generally known as the stock market .
This classification is framed in the meaning of the term as the group of commercial activities and operations that are carried out in one or more economic sectors.
In this sense, we could present various examples such as the following: «The agricultural market is currently experiencing a very complicated situation since its various products have been irremediably affected by the prevailing drought» , «It is very difficult for us to obtain financing in the capital market « , «The pharmaceutical market is denominated by a few large companies» .
In the labor market , the labor force is the object of commercialization.
The competition
The ideal market of perfect competition is achieved when neither buyers nor sellers have the ability to interfere in the final price of the good or service exchanged, thus its determination is the result of the law of supply and demand. This system is affected when monopolies or oligopolies appear that set prices of their own volition, resulting in imperfect competition .
Therefore, in order to impose a market with perfect competition, requirements must be met such as the presence of a considerable number of sellers and consumers or clients (where the actions of each of the parties will have little influence on the global market), the homogeneity of the product (all goods offered are equal), the existence of transparency (those involved are aware of the general conditions that govern the market) and free access to information.
Digital markets
In recent years, operations carried out on digital platforms such as Alibaba , eBay and Amazon and even through social networks such as Facebook , Instagram or Twitter have multiplied. Electronic commerce or e-commerce involves making payments online (using credit card or services such as PayPal ).
In a virtual market, you do not go to a physical business . Sales are made on the Internet and then the manufacturer or seller ships the products to the buyer's home.
The digital economy , in this way, moves increasingly larger numbers. Even a “conventional” store can complement its activity with an online store to increase its reach. As with traditional commercial activities, to improve the positioning of a business in the virtual market you must invest in marketing, promotion and advertising.
Illegal or hidden traffic
Finally we have to refer to a very common expression that uses the word in question as an integral part. It's about the idea of the black market .
This concept is linked to illegal or hidden trafficking that occurs in goods that are not permitted or that are not in abundance and that can be purchased at prices totally different from those that exist at that moment in the legal market, as long as the product in question is available.