That markets have evolved is a fact. Since the technology was implemented, it is known that a market no longer has to have a physical space, but rather, to give you an example, they also exist on the Internet. And that means that there are many types of markets.
But how many are there? Which are the most important? What does a market mean? All of this is what we want to talk to you about today. Go for it?
what is a market
We are going to start by defining the market since, in this way, you will be able to understand much better the types of markets that you can find.
A market is defined as a place (physical or not) in which actions for the sale of goods and services are carried out between two groups: on the one hand, sellers of goods and services; on the other, the buyers or users who acquire what the sellers sell.
The main objective of the market is none other than to carry out an exchange between these two figures (sellers and buyers).
In addition, and as you may have guessed from the beginning, markets are not something static, but change as the world does. So, if before only physical spaces were considered markets, When technology comes into play and puts these people in contact without having to be "in the same place", a market is also produced, even if it is online.
Types of markets
Markets can be classified in many different ways depending on the variables used. In general, these have to do with the product, the area they cover (whether it is for a single city, an autonomous community, a country, the entire world...), the buyer or the competition.
Depending on each variable, there are different types of markets. We will talk about them below.
Types of markets according to the product
As you know, the product (that is, the goods and services) can be varied. So based on how it is, different types can be classified. Among them:
consumer products market
It is one in which products are exchanged that seek to satisfy a need, a consumption that this buyer needs and that, when he does, he no longer has the need.
Of course, it does not mean that he cannot return.
A clear example of this has to do with food. Buying food can be within the consumer products market since you do it for a need (to feed yourself). However, once you do, what you have bought disappears. And when hunger returns you have to go to this market for more product.
Investment products market
It is also known as investment goods markets, of equipment or products for use. The objective in this case would be the purchase and sale of products that cover a need, yes, but that once satisfied is not extinguished.
For example, imagine that you buy a headset for your mobile. Your need is that purchase, but once you have the product, it is not spent with use. Actually yes, but this one takes a long time to wear off.
Obviously, each product has an "expiration date", but it will not be the same if it is used constantly or if it is used sporadically.
raw material market
You can also find it as industrial products. And it is that in it the raw material, or the elements that are necessary to produce or manufacture products or services, are commercialized.
For example, a lumberyard would be a raw material market. And professionals come to him who transform that wood into products such as cabinets, tables, chairs...
financial market
This, which can be physical or online, is used for the sale of financial assets. That is, to buy and sell bonds, shares...
Types of markets according to the area they cover
The following classification that can be made of types of markets is related to the area they cover. That is, where they operate. And it is that not all do it at the same level.
So, you have:
- Local market: working in a small area. The normal thing is that it is a town, a city…
- National market: where in this case the area covers the entire country in which it is installed: towns, cities, autonomous communities...
- Regional market: This is perhaps the most unknown, because its area only covers a part of the country (it can be an autonomous community or a specific area).
- Global market: or international, since it encompasses all the countries in the world.
Types of markets according to the buyer
In the case of buyers, they can also define different types of markets. Among them we find the following:
Dealer Markets
Made up of users who actually buy products but not for their own consumption, but to be able to sell them again making a profit.
For example, a buyer who buys hundreds of cell phones from a seller and then sells them at a higher price, making a profit on that transaction.
industrial buyers
Do you remember what we said about the commodity market? Well, these would be the buyers that I would have. That is, they are users who are dedicated to buying materials in order to produce their own products and services.
Government buyers
As its name indicates, it is related to government institutions. These buy goods and services but to provide public services at the same time.
Consumidores
Are those people looking to buy to meet their needs. Good of products, good of services.
Labor market
Finally, it is the last one related to buyers and there are both offers and requests for work.
Types of markets according to the competition
Competition is an important part of markets, and as such, there may be different types of markets. However, there is one specifically that does not exist, that of perfect competition. In this case, it would be a market in which there would be unlimited competitors who would not have the power to set prices, but would all sell the same thing (or with little nuances) at the same prices.
Beyond this ideal, what we do have are:
- imperfect competition, characterized by the fact that there are many competitors, some that are close to perfection (same or similar products and the same or similar prices) and others that would not fall within this group.
- pure monopoly, that occurs when only one company has the products or services that customers demand. In this way, he has control over the price and also over the quality of that product.
Now that you know the types of markets, is it clearer to you which stores you are going to buy from?