Meaning of Market

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Concept[edit]

The word 'market' has been derived from the Latin word "Mercatus" which means to trade, merchandise or a place where business is transacted.

When used in general sense, market means a place where goods and services are purchased and sold. Thus buyers and sellers meet in the market for buying and selling the goods.

When used in dynamic sense, market may also include the following:

  • an area of operation;
  • any organization by which the exchange of goods is effected;
  • the art of buying and selling; and
  • inhabitants of the country, example take the market of any country. It refers to the total population of that country and its aggregate purchasing power.

Definitions[edit]

According to Chapman, "the term market refers not to a place but a commodity or commodities and buyers and sellers who are in different competition with one another".[1]

According to Philip Kotler, "market is the set of actual and potential buyers of a product".[2]

  1. Chapman, Economics
  2. Philip Kotler and Gary Armstrong, Principles of Marketing,1999,p.9.