Market

A market is a set of arrangements through which buyers and sellers interact to exchange goods and services. The exchange of goods or services, with or without money, is called a transaction.

Markets are interrelated. Changes in one affects another.

Types of Markets

• Physical Market
  Buyers, sellers, and goods/services are in physical contact.
• Intermediate Market
  Markets such as the share market.
• Super Market
  Prices are generally fixed.
• Electronic Market
  Buying and selling through the internet.
• Tele Market
  Transactions through telephone, video, fax, etc.
• Auction Market
  Prices are determined through bidding.
• Differentiated Market
  Products differ in quality, features, or customer preferences.
• Homogeneous Market
  Products are similar and generally sold at similar prices.
• Geographical Market
  Markets defined by a particular region, city, rural area, etc.

Narrowly Defined Market

A market defined with a specific product and close substitutes.

Example: “iPhone 16” or “organic Fuji apples”.

Broadly Defined Market

A market defined by a general product category.

Example: “smartphones” or “fruit”.