Understanding the Market

Schoolash - Understanding the Market. The market is a meeting place for buyers and sellers to make buying and selling of goods or services. According to economics, the market is not the place associated with its activities. Characteristic of a market is the existence of a transaction or activity of buying and selling. Consumers come to the market to shop with the money to pay the price. Stanton, expressed understanding of the broader market. Says the market is people who have a desire to be satisfied, money to spend, and the willingness to spend it. So, in that sense there are factors that support the market, namely: desire, purchasing power, and behavior in purchasing.

Understanding the Market

Understanding the Market
The market has at least three main functions, namely the functions of distribution, price formation and promotion functions. As a function of the distribution, the market acts as a supplier of goods and services from producers to consumers through the buying and selling. As a function of price formation in the market sellers who do demand for goods needed. As a promotional function, the market can also be used to introduce new products from manufacturers to prospective customers.

Such as what types of current market? The types of markets can be distinguished according to several categories, namely according to his physical, according to the time, according to the goods bought and sold, according to extensive activities, according to their form, and according to the nature of price formation. The following is an explanation of each of the types of markets:

Types of markets according to their physical
Concrete market (the real market) is the meeting place between buyers and sellers conduct transactions directly. Goods bought and sold are also available in the market. For example, market vegetables, fruits, and traditional markets.
Abstract market (the market is not real) is the transaction between the seller and the buyer only via telephone, the Internet, and others based on the example of goods. Examples telemarket and capital markets.
Types of markets according to the time
Daily market is a market that activity takes place every day and most traded goods are goods of daily needs.
Weekly market is a market that activity takes place once a week. Usually found in areas that have not densely populated and location of the settlements are still far apart.
Monthly market is a market whose activities take place once a month. Usually the goods bought and sold the goods to be resold (agent / wholesale).
The annual market is a market that activity takes place once a year, for example PRJ (Pasar Raya Jakarta).
The types of goods bought and sold according to the market
Consumer goods market is a market that trade in consumer goods to satisfy human needs.
Market production resources is the market trade in the factors of production, such as labor, skilled labor, machinery, and land.
The types of the market according to extensive activities
The local market is a market that sellers and buyers only locals.
Local market or local market is a market in every area of ​​trade in goods that required the derah population. Examples Pasar Gede Solo.
National market is a market that make buying and selling goods include a state example senen market.
International market is a market that make buying and selling goods for the international community. Examples coffee market in Santos (Brazil).
Types of markets according to form
Perfect competition (organized)
The market imperfect competition
Types of markets according to the nature of price formation
Market competition is the formation of market prices are determined by competition between demand and supply.
Monopoly is a market that the seller of a product on the market is only one person. Examples PT Kereta Api Indonesia.
Duopoly market is a market that the seller just two people and offers an item master and control the prices of goods.
Oligopoly market is a market in which there are few sellers, led by one of the sellers control the price level of goods. Examples automotive company Astra Indonesia.
Monopsony market is a market that the formation of the price of goods is controlled by one person or a group of buyers.
Duopsoni market is the establishment of the market price of goods is controlled by two people or two groups of buyers.
Oligopsony market is a market that the formation of the price of goods is controlled by a few people or a few groups of buyers.
So the description of Market Definition and types of markets, may be useful.

Reference:
M.Fuad, Christine H, Nurlela, Sugiarto, and Paul YEF 2000. Introduction to Business. Jakarta: Gramedia Pustaka Utama.