Markets

The concepts of exchange and relationships lead to concept of a market. A market is set of real and potential buyers of a product.

1. Originally a market was a place where sellers and buyers gathered to exchange goods (like a village square).
2. Economists use term to designate a collection of sellers and buyers who transact in a specific product class (as in housing market).
3. Marketers see buyers as constituting sellers and market constituting an industry.
4. Modern economies operate on principle of division of labour, where individual specializes in producing something; retain payment, and buys needed things with this money. Therefore, modern economies abound in markets.
5. Marketers are keenly interested in the markets.