Meaning of Market

The market originated in ancient times as a name for a place where people traded at a fixed time or place, which was formed spontaneously by those who needed to exchange goods frequently in order to reduce search costs. The word "market" does not mean "city," but rather the ancient meaning of "buying and selling," and "trading.

Today, the market has two meanings, one is the trading place, such as the traditional market, stock market, futures market, etc., and the other meaning is the trading behavior of the general term.

The word market is not just a place, but also includes the behavior of trading in this place. Therefore, when talking about the market size, does not only mean the size of the place, but also includes the consumer behavior is active. Broadly speaking, all property rights transfer and exchange of relations can be a market.

The Definitions Committee of the American Marketing Association offered the following definition of a market in 1960: a market is the aggregated demand of potential buyers of a good or service.

Philip Kotler defined a market as the set of all actual and potential purchasers of a product.

Expanded Information:

Markets can be divided into different types from different perspectives. Among them, according to the basic attributes of goods can be divided into general commodity markets and special commodity markets.

The general commodity market refers to the narrow sense of the commodity market, that is, the goods market, including consumer goods market and industrial goods market; special commodity market refers to meet the financial needs of consumers and service needs and the formation of the market, including the capital market, the labor market and the market for technical information. When analyzing the above two kinds of markets, it is generally necessary to study the consumer market, the industrial market and the government market.

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