Types of Markets

Market is understood as both the organization or entity that allows sellers or bidders to expose their products, as well as the place or establishment in which the transactions and exchanges of products are carried out, as well as the transactions, exchanges , offers and demands of products, merchandise, and potential buyers or consumers of a particular good or merchandise. Market is also called certain regions or places that are relevant for the introduction of some specific type of merchandise. That is, the concept of market has several meanings, where the trade of products or services by those who make an offer and the demand or consumption of those who buy a service or product is implied. Yes ok,

Historically, the institution of the market, as well as the establishments with that name, have existed since the first traces of civilization, this at the beginning of the first commercial exchanges between individuals and diverse populations, through barter, that is, before the appearance of money, which is a tool created precisely to facilitate commercial exchanges, first of goods (food, tools, clothing, household utensils, luxury items such as jewelry, etc.), and later of various services, as trade has been diversifying.

Brief Market History

The market arose as a need for primitive man to exchange merchandise and products that were not necessary for others that were, through barter, later evolving to the use of different objects used as currency such as shells, colored stones, metallic pieces. , seeds such as cocoa and others, until the emergence of the metallic currency itself as an object of merchandise exchange, facilitating transactions and exchanges.

It was since the first civilizations that specific centers were created to trade (the markets themselves), in addition to the fact that transactions were also used by itinerant merchants and merchants, who used to travel in caravan from population to population to trade their merchandise for products of different regions.

In the established markets, that is, in the buildings built for this purpose, transactions began to be regularized and supervised by both civil and religious authorities, thus giving rise to the first mercantile regulations, as well as the creation of the first weights and measures, of which some are still used today, with which disputes between merchants and consumers were avoided. It is also when some monopolies of products or goods by the authority (civil or secular) start.

With the passing of the centuries, the specialization of the markets in a certain type of product arises, and we can currently find markets dedicated to meat and meat products, seeds, fish, metals, wines, electrical appliances, tools, furniture, currency markets, real estate, etc.

The types of market can be divided according to several criteria, either by their location or geographical scope, by the type of markets to which they are focused, by the prevailing economic system, etc.

Main types of market:

Internal market

It is thus called the set of commercial exchanges, transactions and economic volume, which occur within the same country, as well as consumers or potential buyers of products and services within a country.

Foreign Market

External market is understood as the various economic activities that exist between a country and abroad, that is, international trade, speaking then of the economic exchange of goods and services, as well as monetary and financial between two or more countries, understanding that the market external is inclined to the export / import of merchandise, goods and services. Thus, the external market is also called the possible buyers of goods and services abroad of a country, that is, possible consumers in other countries, of the services or goods that are intended to be “exported”.

Retail market

The retail market is understood as that which is focused on the trading of relatively small-sized securities, as well as the trading of retail products. It is the one that we can observe, for example, in local markets, squares, street markets such as street markets, etc. where products are sold in small quantities to consumers, such as bread, meat, electronics, milk and other products.

Wholesale Market

We speak of wholesale markets when it comes to commercial and financial transactions of a large volume of merchandise, securities and money. We also speak of wholesale markets when it comes to wholesale purchases and sales of products, that is, where purchases and sales are made by exchanging merchandise and other goods in large quantities, making large financial and commercial movements. It is the one that we can observe, for example, when a chain of stores acquires a large quantity of certain products, at a price, to later sell them at retail at a price with which it acquires a difference as profit.

Open market

These are those markets in which all companies or persons who wish to participate have the possibility of participating, for example in the food market where any company or person can participate, as long as it complies with the corresponding regulatory provisions.

Closed market

These are those markets in which there cannot be participation by all the companies that want it, since there are laws, regulations or different barriers that prevent it, such as, for example, the pharmaceutical or armament markets, where not everyone can participate. company by the type of products and/or services with which it is traded.

Market types from a theoretical point of view:

Free Market 

The free market is understood as the economic-commercial system in which the price of goods is set by means of an agreement between the seller or supplier and the consumer or buyer, by means of the laws of supply and demand, that is, that the value of the products or services is established by the availability of products and by the demand for them by the market (consumers).

Monopoly Market

It is the one in which there would be a single producer, who would exclusively have the production and/or commercialization of a certain product or service, thus obtaining a monopoly and therefore would have monopolized the “market”, that is to say, that the Consumers would have the only option to acquire the good or service from the vendor/producer of the good in question, who would have control of both the market (the buyers) and the changes in the price of the product since there is no competition.

Market  Oligopoly

This is the market made up of a small number of producers, who monopolize the marketing of products and therefore manipulate their prices, forcing convenient prices to be set for them, outstripping possible competitors.

Monopolistic Competition Market

This type of market is understood as one in which, although there are various suppliers of a certain type of product, there are differences mainly in quality, price, advertising or marketing that give it a certain preference or primacy over other products similar to the eyes of consumers. In this type of market there is competition, but due to the advantages that there may be for a producer or marketer, they allow them to monopolize consumers.

Types of market according to the geographical point of view:

local market 

Local market is understood as those that are within the same country and whose scope is in certain specific regions. This could be, for example, regions in which a product is sold locally, as would be the case, for example, of agricultural or fishery products that are sold locally in a specific city, town or area within the same country.

Regional Market  (national)

Regional markets are understood as both markets that cover a significant geographical area within the same country, encompassing several local markets, but without reaching national coverage.

Regional international or multinational regional market 

Another type of regional market refers to the markets or the trade that exists between two or more countries in a certain region, such as, for example, the Central American or North American market, which, despite being international markets, cover the entire a delimited economic region.

National Market 

It is the trade and transactions that take place within the territory of a state or country, that is, it is the internal market of a country, which encompasses all local and regional markets within the borders of the country, it is also called thus to potential buyers of a given product within the borders of the same nation.

Global market

Global market is understood as the set of national and international markets, economic, monetary and merchandise exchanges between several countries, that is, the set of international trade. Thus, the global market is also understood as potential buyers (also known as “markets”), with whom products and/or services can be traded worldwide, this trade or exchange generally being on a large scale, both in the volume of imports, exports and sales, as in goods and services (such as transportation, monetary, financial, raw material exchanges, etc.

Other types of market are the market:

• of goods
• of perfect competition
• Of consumption
• of coins
• of services
• Of transport
• stock
• Emergent
• financial
• industrial
• Intermediate
• Labor
• not transparent
• Transparent
• Virtual

Market examples according to the type of merchandise with which they trade:

Agricultural market, cereals, fruit, vegetables, cattle, meat, poultry, wood, fine wood, furniture, appliances, electronics, computers, cell phones, clothing, shoes, fast food, weapons, medicines, wines, cheeses, books, magazines, silver, handicrafts, gold, oil, hotels, finance, raw materials, real estate, shipping, aeronautics , port, candy.