Meaning, Roles, and Types of Market

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Humans are social beings. Humans as social beings can not live alone but there is another dependency. Similarly, in meeting their needs clothing, food, shelter, must find and communicate with others because they are not able to create and produce their own goods and services needed in his life.

As humans have limitations in many things such as capital, skills, opportunities and so on. For example, a farmer in meeting the needs of daily life is not enough to simply harvest. To produce other goods, they have limitations and cannot do all things to fulfill their needs.


To buy various kinds of other needs a farmer must sell some of his harvest in order to obtain money for other purposes. Fisherman are selling some fish to buy sugar, coffee, cooking oil, medicines, clothing, vehicles and other purposes. Thus they need the market place to sell crops and work and buy other necessities. More formally, the market is an institution or agency that runs the trading activities of goods and services. In other words that every relationship between buyers and sellers of a commodity within a certain time period has been able to market even though the communication is conducted via telephone communication devices, mobile or Internet.

History of market formation through a long evolution, which originated from an effort to meet their own needs. This can be done because it needs very limited human food problem alone, that can be met alone. Exchange of goods if there are only limited environment. In the next stage where the demand began to grow, they held an exchange of goods wider environment by looking for / see the parties need each other. In the next stage where the need is growing, so they need each other these things come together in a shady place and shade. The place is agreed to meet market known.

At present the role of today’s market is very important. To reduce the cost of goods, industrial companies producing goods for the mass production process using machines that can produce large quantities of goods are probably more than is needed with a relatively short time. A market for goods produced is related to the company’s survival. In the market of producers and consumers to meet and communicate. Through the market mechanism bidding producer (supply) of its products and through market mechanisms is also a consumer making a request (demand). The existence of the action of supply and demand can cause prices to match prices and will lead to buying and selling. Buying and selling will cause profits to be able to cover production costs and increase the company capital.

Through their profits in the market, companies can maintain business continuity. On the contrary in the company also markets fail. The ability of the company is not determined by the amount of capital per se, but rather is determined by the availability of markets for the products produced. Market development will always be in line with the development community. In the capital city such as traditional markets slowly and would have started displaced and replaced with modern markets. In the picture below to see examples of situations traditional markets and modern markets.

With that image understanding is the overall market demand and supply will be something of goods and services. This understanding can be extended back into the market of concrete and abstract market. Concrete market is a specific place where sellers and buyers meet to offer each other. Abstract market is a meeting where every activity, whether directly or indirectly a part determines the price. The use of the term current market becomes more widely without reducing the significance of the meeting place between the seller and buyer. In the following picture note the use of the word Hero supermarket, supermarkets Tip Top, Hypermart, Indomart, and others. Mart is the market means. In a broader discussion of science in marketing, said the market can be interpreted also as a consumer market.

Considering the vast scope of the market, the market share based on a variety of sizes as follows: Based on the size of geographic area, divided into:

• Local Market

The definition of local markets is a meeting of supply and demand for goods and services the local extent. Products available in the market is generally very limited and to meet local needs.

• Regional Market

The definition of regional markets is the supply and demand for goods and services where the existing products on the market to meet the needs of local / regional areas. For example the demand and supply of sago flour as the staple food mostly found in the Moluccas. Therefore there are regional markets sago in the Moluccas and the surrounding area.

• International Market

International markets or world markets is the demand and supply various products and services produced by a country to be marketed to other countries. Examples Indonesia produces spices, oils, carvings and many other countries offer. Conversely Indonesia lot of buying electronic goods and machinery to meet domestic needs.

Based on the measurement of time, can be divided into:

• Daily Market

In this type of market, the balance between demand and supply are temporary and short-term, so the number of available items and a limited few on that day alone. In this market there is no opportunity to increase the number of goods in the market.

• Short-Term markets (short run market)

In this market there are opportunities to increase the number of traded goods. However, limited the available production factors.

• Long-term Market

In the long-term market companies can face additional demands as they may change their production by changing the amount of production equipment to meet market demand.

Based on their activities:

• Goods Market

The definition of the goods market is a meeting place of demand and supply of goods. With growing population and the means of satisfying the needs of the market becomes very diverse goods, such as fruit markets, vegetable markets, markets books, electronic goods markets and so on.

• Labor Market

The definition of the labor market is the demand and supply of labor. As is known Indonesian labor demand to the Middle East is very high, so many companies in the distribution of foreign workers. Transactions between recruitment company in Indonesia with labor recruitment in the Middle East is the labor market.

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