What is a marketplace

What is a market place

Introduction

A marketplace is where the sellers (vendors) sell their things and the customer will buy any product of his desire.

What is a market

A market is a regular gathering of people for the purchase and sale of goods or services.

Types of markets

Physical market– A physical market is where the customers travel to the market make contact with the seller and buy the product. (vegetable market, shopping mall, restaurants, etc.)

Digital market– A digital market is where you buy products via the phone, computer, etc.
there are two types of digital markets multi-seller markets(Amazon, Flipkart, eBay, etc.) and individual selling markets like ( Nike, Adidas). Individual sellers have their own online markets and they can sell products in multi-selling markets.

Auction Market – In an auction market. the seller sells his goods to one who is the highest bidder.
In an auction market, the buyer gets services from one who is the lowest bidder.

The market for Intermediate Goods – Such markets sell raw materials (goods) required for the final production of other goods.

Black Market – A black market is a setup where illegal goods like drugs and weapons are sold.

Knowledge Market – A knowledge market is a setup that deals in the exchange of information and knowledge-based on the products of goods.

Financial Market – Market dealing with the exchange of liquid assets (money) is called a financial market.

Financial markets are of the following types:

1. Stock Market – A form of market where sellers and buyers exchange shares of the company are called a stock market.
2. Bond Market – A marketplace where buyers and sellers are engaged in the exchange or borrowed by one party from another security, usually in the form of bonds is called a bond market. A bond is a contract signed by both parties where one party promises to return the money with interest
   at fixed intervals.
3. Foreign Exchange Market – In such type of market, parties are involved in the trading of currency. In a foreign exchange market (also called a currency market), one party exchanges one country’s currency with an equivalent quantity of another currency.
4. Predictive Markets – Predictive market is a setup where the exchange of goods or services takes place for the future. The buyer benefits when the market goes up and is at a loss when the market crashes.

Market Size

The market size is directly proportional to two factors:

• Number of Sellers and Buyers
• Total money involved annually

Criteria to host a market.

1. Know the crowd around you– We need to analyze the crowd living in the place where we want to set our market.
   example: Let us say that we have a place to host a shop next to a hospital. So if we need profit what kind of shop do we need. In a hospital, the patient might need medicine. so most probably they will get the medicines if the shop is right net to the hospital.

   example 2: we need to analyze what type of hospitals are there in the area (in the case of the above example.)
   if it is a skin-related hospital we can host a shop that sells medicine of only skin-related medicines.

2. Competitor analysis-Competitor analysis in marketing and strategic management is an assessment of the strengths and weaknesses of current and potential
   competitors.
   .

Importance of marketplaces.

Marketplaces make it easy to offer coupons and bargains to customers. It also shortens the response time. This is beneficial for the vendor and the buyer. Quicker responses allow sellers to make changes if needed for their campaigns.