Category: Markets

When looking at markets, the Economic Times defines them as the sum total of all the buyers and sellers in the area or region under consideration. The area may be the earth, or countries, regions, states, or cities.

The value, cost and price of items traded are as per forces of supply and demand in a market. The market may be a physical entity, or may be virtual. It may be local or global, perfect and imperfect.

A market can be called the ‘available market’ – that of all the people in the area. Within the available market, there is the ‘market minimum’- or the market size, which will buy goods without any marketing effort. This is the lowest sale that a company could get without any action on its part. In today’s world, this level is sinking ever lower.

There is also the ‘market potential’, which is the maximum market size that will buy goods when subjected to the greatest marketing action that a company can do. Beyond this market potential, the costs outweigh the gains. The market potential is therefore the upper limit for a marketplace and sales.

There are a variety of different types of markets in existence, depending on the industry and the companies within that industry. It is important to understand what types of markets one is operating in when making pricing and production decisions, or when determining whether to enter or leave a particular industry.

pandemic economy

Despite Third Quarter Gains, The Pandemic Economy Is Still Behind Schedule

The Commerce Department reported that the pandemic economy grew at an annualized pace of 33.1% in the third quarter. That headline figure overstates the actual growth rate, however, just as the official number for the April to June quarter showing an annualized contraction of 31.4% exaggerated the economy’s decline (Both figures describe...