What is Market? Meaning, Features and More.

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When we hear the word market, we remember a place where there are a lot of buyers and sellers who exchange goods and services, this is also true, but according to economics it is not the only market. Market can be formed anytime anywhere, for this there must be buyers, sellers, product and place etc. but there must be something in return also. If there is nothing in return, then that situation will not be called market.

It is not necessary to have a large number of buyers and sellers to create a market; A market can also be formed with only one buyer and one seller. The market is divided according to different situations so that by looking at that situation it can be found out which market it is like perfect competition market, monopolistic market, monopoly market, etc. Every market has its own features which make it different from each other.

What is Market?

Meaning of Market

Market is the place where buyers and sellers exchange goods and services. It is not necessary to have any particular place to be called a market and it is also not necessary that the buyer and the seller are present face to face. Market can be created anytime anywhere but it is necessary to have all the important elements of the market like buyer, seller, product, place etc. Market can be in physical and artificial form.

The main objective of market formation is to satisfy the needs of both the parties. In this, one party is the one who needs goods and services, called the buyer, and the other party is the one who supplies the goods and services, called the seller. When a buyer buys something from a seller, he gives something in return, similarly, when a seller takes something from the buyer, he gives something in return. Both parties depend on each other.

Definition of Market

According to Philip Kotler – “A market consists of all the potential customers sharing a particular need or wants who might be willing and able to engage in exchange to satisfy that need or want.”

According to J.C. Edwards – “A market is that mechanism by which buyers and sellers are brought together. It is not necessarily a fixed place.”

According to Professor Chapman – “The term market refers not necessarily to a place but always to commodity or commodities and the buyers and sellers of the same who are in direct competition with each other.”

According to Professor Benham – Market is an area over which buyers and sellers are in close touch with one another, either directly or through dealers, that the price obtainable in one part of the market affects the prices paid in other parts.”

Features/Elements of Market

Following are the features of the market:

1. Buyer and Seller:

To form a market, it is necessary to have buyers and sellers because without these two the market cannot be formed. The main objective of the market is to meet the needs of buyers and sellers, if both of these are not there then the objective of the market will not be fulfilled.

• Buyer: A buyer is a person who buys a product by giving something in return. The one who takes goods without giving anything in return is not called a buyer.
• Seller: A seller is a person who sells a product by taking something in return. The one who gives a product without taking anything in return is not called a seller.

2. Place:

Place is very important for forming a market because without place buyers and sellers cannot come in contact with each other. It is not necessary for a market to be at any particular place, it can be formed anywhere, and it is also not necessary that the buyer and seller are present face to face. Due to technology, the market is also in virtual form.

3. Product:

The objective of the buyer is to buy goods and services and the objective of the seller is to sell goods and services. To fulfill these objectives, a market is formed where buyers and sellers come in contact with each other and exchange goods and services, hence for the formation of a market, it is necessary to have products. Note that a market cannot be formed unless all important market elements are met.

4. Something in Return:

A market is called a market only when something is given in return, if nothing is given in return then it will not be called a market. Something in return means that when someone gives something to someone else, the other person will also give something in return. For example, when a buyer buys a product from a seller, he gives something in return such as money or its equivalent, etc.

Read Also:

• Types of Market
• What is a Perfect Competition Market? Meaning, Features, and More.
• What is a Monopolistic Competition Market? Meaning, Features, and More.
• What is a Monopoly Market? Meaning, Features, and More.
• What is a Monopsony Market? Meaning, Features, and More.
• What is a Duopoly Market? Meaning, Features, and More.
• What is Duopsony Market? Meaning, Features, and More.
• What is an Oligopoly Market? Meaning, Features, and More.
• What is Oligopsony Market? Meaning, Features, and More.
• What is Bilateral Monopoly Market? Meaning, Features, and More.

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