8.3 Concept of Market :
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Concepts of Market:
The term ‘Market’ has three concepts:
1. Place Concept:
A market is a convenient meeting place for buyers and sellers to gather together in order to conduct buying and selling activities, e.g., a spot, cash or physical market, wholesale or retail market.
2. Market Concept:
A market is an area, small or large, in which price-making forces of demand and supply tend to operate freely through modern means of communication such as phone, telex, correspondence, etc., and where informed buyers and sellers can establish close and continuous contacts to carry on exchange of goods and services without formal face-to-face meeting in such a market, price uniformity can be easily established place-wise through transport and time-wise through warehousing.
3. Demand Concept:
The term market is also used to represent customer demand. In this sense, market means people with needs to satisfy, the money to spend and the will to spend money to satisfy their wants. The human being is a wanting animal having never-ending, varied and ever-changing wants.
The process of want-satisfaction is continuous and under keen competition, sellers want to create, capture and retain the market (consumer demand) for their goods. A seller may be priced out of the market when his product has no demand. Every product has a life cycle. What was popular yesterday may not be popular tomorrow.