What is Market in Marketing? Definition of Market in Marketing, Market in Marketing Meaning and Concept
The market in marketing is understood as the set of real and potential buyers of a good or service. It can be a group of people or organizations that have a need to cover, purchasing power and willingness to want to buy a product.
That is, the market in marketing will depend on the number of buyers willing to buy the products offered by the company. These people know that they can satisfy their need by acquiring the goods and services that the firm sells.
The relationship described is resolved through exchange. People pay an amount of money in exchange for obtaining the satisfaction.
Indeed, all the people who make up the marketing market must have the desire to buy the product, the purchasing power to demand it and have access to it. Therefore, when a company wants to market a product, it must study the demand and the consumer. In addition, with these studies the company seeks to increase its participation and market share.
What is a market for marketing?
It is important to mention that, when talking about the market, there are different ways of defining and understanding it. An ordinary person when talking about the market refers to the place where you can buy the products you need.
Now, from the point of view of economics, a market is the process where the forces of supply and demand interact to establish equilibrium prices. Or the process where favorable exchanges and transactions are made for the interacting parties.
Meanwhile, for marketing, the focus is on the actual or potential people who demand a product. Therefore, a market for marketing must have the following conditions:
- There must be a group of people who need to satisfy certain needs or have the desire to cover a need with a specific product.
- That there is a good or service that can satisfy those needs or desires.
- The presence of companies that offer or offer for sale products that can meet these needs and desires. These products are offered or sold in exchange for an amount of money that the buyer has to be willing to pay.
Types of market in marketing
The types of markets in marketing can be classified as follows:
1. Consumer market
First, we find the consumer market. This includes all the people who buy the goods and services that a company sells for their consumption or personal use. For example, a family that buys milk for consumption. Also, it could be the case of a person who buys a computer for his personal use.
Without a doubt, this market is characterized by the fact that people buy very frequently, but they buy in small quantities. Likewise, it has evolved a lot due to new market trends, new forms of communication and changes in consumption habits.
2. Industrial market
Second, we locate the industrial market. This market is made up of all the companies or institutions that demand products to produce other goods and services. That is, they buy these products that will serve as inputs to offer other satisfiers in the market.
In this case, to exemplify, it could be a company that buys milk to produce ice cream that it will then offer to the market. Similarly, it could be a university that buys computers to equip its computer labs. Of course, in these markets customers buy in large quantities and in more spaced periods of time.
3. Dealer market in marketing
Third, there is the dealer market. This includes any person or organization that acquires the products that a company sells, with the purpose of reselling them and obtaining a profit. It is a market where the purchased product does not undergo any transformation, but it does generate profits.
Distributors, of course, buy in large quantities and their frequency of purchase is based on the demand of their consumers. The example would be a supermarket that buys milk from a producer company and sells it to families. Also, a company that imports computers and resells them to people or institutions that request them.
4. Government Market
Fourth, we identify the government market. Includes all public sector institutions that purchase goods and services from production or distribution companies to perform their duties. Therefore, they can buy for consumption or investment. Due to the large number of functions that the government has, it is a very important client for any company.
Continuing with the previous examples, you could buy milk to provide a balanced diet for children in government-run daycare centers. Or, buy computers to provide children in public schools with tools to access virtual education.
5. International market
Finally, we find the international market. The international market is any foreign company that imports the products offered and marketed by a national company. The goal of foreign companies is to obtain products of better quality and price.
Naturally, this market is more efficient as long as there are fewer barriers to international trade and as long as relations between countries are better.
In conclusion, it can be stated that the concept of market in marketing is focused on consumers and customers who buy products. Therefore, the word market is used in marketing to describe the buyers of a good or service. Companies direct their efforts to meet the needs of that group of people or institutions that have the ability and willingness to buy. In this way, they manage to grow and increase their market share.