WHAT IS MARKET, EACH TYPE, ROLE AND PURPOSE?

A market is one of the many varieties of systems, institutions, procedures, social

relations and infrastructures whereby parties engage in exchange.

TYPES OF MARKETS
Perfect Competition

Perfect competition is a market system characterized by many different buyers and sellers. In the classic
theoretical definition of perfect competition, there are an infinite number of buyers and sellers. With so
many market players, it is impossible for any one participant to alter the prevailing price in the market. If
they attempt to do so, buyers and sellers have infinite alternatives to pursue.

Monopoly

A monopoly is the exact opposite form of market system as perfect competition. In a pure monopoly,
there is only one producer of a particular good or service, and generally no reasonable substitute. In
such a market system, the monopolist is able to charge whatever price they wish due to the absence of
competition, but their overall revenue will be limited by the ability or willingness of customers to pay
their price.

Oligopoly

An oligopoly is similar in many ways to a monopoly. The primary difference is that rather than having
only one producer of a good or service, there are a handful of producers, or at least a handful of
producers that make up a dominant majority of the production in the market system. While oligopolists
do not have the same pricing power as monopolists, it is possible, without diligent government
regulation that oligopolists will collude with one another to set prices in the same way a monopolist
would.

Monopolistic Competition

Monopolistic competition is a type of market system combining elements of a monopoly and perfect
competition. Like a perfectly competitive market system, there are numerous competitors in the
market. The difference is that each competitor is sufficiently differentiated from the others that some
can charge greater prices than a perfectly competitive firm. An example of monopolistic competition is
the market for music. While there are many artists, each artist is different and is not perfectly
substitutible with another artist.

Monopsony

Market systems are not only differentiated according to the number of suppliers in the market. They
may also be differentiated according to the number of buyers. Whereas a perfectly competitive market
theoretically has an infinite number of buyers and sellers, a monopsony has only one buyer for a
particular good or service, giving that buyer significant power in determining the price of the products
produced.
What is the purpose of a market?
The purpose of marketing is to attract attention and create interest. Marketing can create a brand image,
change that image and get people interested in what's for sale. Marketing a product or service was once
done primarily with billboards and print ads and now is often done online and via social media.

WHAT IS MARKETING?
Marketing is the study and management of exchange relationships. Marketing is used to create, keep and
satisfy the customer. With the customer as the focus of its activities, it can be concluded that Marketing is one
of the premier components of Business Management - the other being Innovation.

WHAT IS MARKETING MIX?

The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or
product in the market. The 4Ps make up a typical marketing mix - Price, Product, Promotion and Place.
However, nowadays, the marketing mix increasingly includes several other Ps like Packaging, Positioning,
People and even Politics as vital mix elements.

WHAT IS MARKETING SYSTEM?

A market system is any systematic process enabling many market players to bid and ask: helping bidders and
sellers interact and make deals. It is not just the price mechanism but the entire system of regulation,
qualification, credentials, reputations and clearing that surrounds that mechanism and makes it operate in a
social context.

WHAT IS MARKETING CONCEPT VS. SELLING CONCEPT?

After the industrial revolution, innovation became common, and engineering skills grew immensely. This
led to making of machines that were able to produce large quantities that were unseen at that period. So,
mass production became a habit of industries. Because of this, supply outpaced demand in many
industries. Businesses had to find ways to dispose the excess quantities that were not sold by their own.
Firms decided to promote their products extensively and persuade customers for purchase. Selling concept
emerged as a result of this.

Selling concept can be classified as ‘persuading and convincing customers to purchase goods of the firm by
extensive promotional modes.’ The promotion tools used were advertising and personal selling. Selling
concept believes that customers will not buy enough unless they are pushed to buy. Still, for certain
products, selling concept is being used. Examples are life insurance, retirement plans, and firefighting
equipment.

WHAT IS MARKETING SEGMENTATION?

Market segmentation is the process of dividing a broad consumer or business market, normally consisting
of existing and potential customers, into sub-groups of consumers based on some type of shared
characteristics.