A market is a set of actual and potential buyers of a product. These buyers share a particular need or want that can be satisfied through exchange. Thus, the size of a market depends on the number of people who exhibit the need, have resources to engage in exchange, and are willing to offer these resources in exchange for want they wants.
Originally, the term market stood for the place where buyers and sellers gathered to exchange their goods, such as a village square, Economists use the term market to refer to a collection of buyers and sellers who transact in a particular product class, as in the housing market or the grain market. Understanding what is market will in no small measure be of great important to companies or business concern. Marketers however, see the sellers as constituting an industry and the buyers as constituting a market. the relationship between the industry and the buyers as constituting a market. the relationship between the industry and the buyers as constituting a market can be explained with the following
Industry can be defined as a collection of sellers or producers. while market is a collection of buyers scathered in the same or different locations.For selling to take place, the sellers and buyers must communicate. Communication give the sellers opportunity to know and understand actually what the buyers need and also buyers will know what the sellers has and where to get the product. Effective communication leads to effective exchaqnge transaction.
This is the exchange of information between sellers and buyers which leads to need,and want being satisfied.Sellers has to inform the buyer about the quality and availability of the product. While the buyer has to give feedback to the seller which will lead to product improvement and better service.
Product / services: a product or service can be defined as any thing that is offered in to the market that is capable of satisfying human need and want. For a company to exist it must have something to offer to the public or customers in exchange for money. The quality of your product is a stepping stone for good sales. Consumers will favour products that offer the most quality, performance, and innovative features. Thus, an organization should devote energy to making continous product improvements.The industry (seller) will offer products or services to the market( buyers).
Money: It can be defined as a medium of exchange. When goods or services are offered to buyers, they respond by paying money. This can be refered to as a transaction. The money will be used by sellers for further production
Feed back information: feed back means response from the buyers. It could be negative or positive. Positive response means that the customers were satisfied. This means that the producer or seller should continue in that direction. Negative response means that the producer should produce something else or improve on the product. Feed back information is very vital for companies or organizations who realy want yto make impact in the industry. Sellers and buyers are connected by four flows. The sellers send products, services, and communication to the market; in return, they receive money and information. The customers give money and sends feedback information to sellers.
Modern economies operate on the principle of division of labour, where each person specializes in producing somethig, receives payment, and buys needed things with this money. Thus, modern economies abound in markets. Producers go to resource markets( raw-material markets, labour markets, money markets) buy resources, turn them into goods and services, and sell them to middlemen who sell them to consumers. The consumers sell their labour, for which they receive income to pay for the goods and services they buy. The government is another market that plays several roles. It buys goods from resources, producer and middlemen markets; it pays them; it taxes these markets( including consumer market); and it returns needed publc srevices. Thus, each nation’s economy and the whole world economy consist of complex interacting sets of markets that are linked thruogh exchange processes.
Marketing; The concept of markets finally brings us full circle to the concept of marketing. Marketing means managing markets to bring about exchange for the purpose of satisfying human needs and wants.Base on this, i consider the definition of marketing as a process by which individuals and groups obtain what they need and want by creating and exchanging products and value with.
Elements in a Modern Marketing
a supplier b company(marketer) c competitors d Marketing intermediators e End user market f Environment and others.
Exchange processes involve work. Sellers must search for buyers, identify their needs design good products and services, set prices for them, promote them, and store and deliver them. Activities such as product develpoment, research, communication, distribution, price and service are core marketing activities.