Home / Notes / Economy /

Market Dynamics and Classification Framework

Economy2.68 KB

The Market

The market represents the external environment where companies conduct economic exchanges.

Key Actors

  • Buyers: Individuals or entities with specific needs and purchasing capabilities.
  • Vendors or Suppliers: Entities providing goods or services for trade.

Core Elements of Exchange

  • The Product: The good being traded.
  • Price: Contractual terms or features that improve the exchange ratio.
  • Conditions: Specific contractual terms related to the exchange.

Market Classification

1. According to the Number of Competitors

  • Monopolistic Market: Defined by a single bidder serving many applicants, or vice versa.
  • Oligopoly Market: A few bidders serving many applicants.
  • Perfectly Competitive Market: Many bidders serving many applicants.

2. According to the Buyer

  • Consumer Markets: Individual buyers who purchase for personal use rather than business or service purposes.
  • Enterprise Markets: Buyers with legal personality purchasing goods for productive activities. This includes retail and wholesale markets.
  • Public Markets: Institutional bodies related to public administration, whether productive or non-productive.

3. According to Product Functionality and Nature

  • Non-durable Consumer Goods: Products that meet immediate final consumer needs.
  • Durable Consumer Goods: Products that meet long-term end-customer needs.
  • Commodity Market: Natural or base-transformed products used as raw materials.
  • Industrial Goods Market: Products intended for industrial use.
  • Service Market: Intangible products or services provided by public or private agents.

4. According to Transaction Time and Expansion

  • Spot Market: Transactions executed immediately.
  • Futures Markets: Transactions scheduled for future dates.
  • Current Market: The estimated demand capacity at the time of analysis.
  • Potential Market: Expected capacity based on market growth and marketing actions.

5. According to Trade Conditions

  • Auction
  • Tender
  • Relationship-based
  • Contractual
  • Franchise
  • Obligational

Download

PDF Word HTML