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A market is simply a combination of buyers and sellers. These two groups can meet in a physical place (a shop, for example) or can meet across miles, aided by telecommunications (increasingly, the internet). They meet to buy and sell goods or services. The term “Market” is simply a short hand for “any place or situation where two or more people meet to exchange goods or services”.
If you are in business selling a good or a service, you need to know about the market you are selling in – is it a busy one with lots of competitors (other businesses trying to sell the same product), or are there very few competitors? The type of market you operate in will have a big influence on your success.
In unit 2 you are expected to know about the following types of markets. None are particularly special and you could come up with completely different ways of classifying markets e.g. by location (France, England etc) or by type of product (cars, food, music etc). However, from a business perspective, the following types of market do behave in different ways and it’s one factor a business needs to take into account before setting up in business i.e. is the type of market I’m entering an easy or difficult one to survive in and what will it take to be successful?
Click on any of the above to find out more.
Note: the WYNTL makes reference to “End Product” markets. Such markets are simply those for “final” goods or services which are directly consumed by the buyer. No separate reference to “End Product” markets will be made within this e-unit.
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