QS Study

In the traditional sense, the term ‘market’ refers to the place where buyers and sellers gather to enter into transactions involving the exchange of goods and services. A market is a medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange

But in modern marketing sense, the term market has a broader meaning. It refers to a set of actual and potential buyers of a product or service.

Beginning with the total population, various terms are used to describe the market based on the level of narrowing:

Potential market – those in the total population who have interest in acquiring the product.

Available market – those in the probable market who have adequate money to buy the product.

Qualified available market – those in the available market who lawfully are allowable to buy the product.

Target market – the segment of the qualified available market that the firm has decided to serve (the served market).

Penetrated market – those in the target market who have purchased the product.

Types of Markets

  • Physical Markets
  • Virtual markets
  • Auction Market
  • Market for Intermediate Goods
  • Black Market etc.

Financial markets are of following types:

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