A market is place where people buy or sell their products under consideration. The place may be any country any region any state or any city. A market is physical organization or may be effective for trade. The cost and value of the traded items are supplied on demand.
A market is a place which allows the purchaser and the seller to invent and gather information and lets them carry out exchange of various products and services. In other words the Meaning of Market refers to a place where the trading of goods takes place. The place can be a market place or a street market.
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WHY MARKETS ARE IMPORTANT
Most people including the poor and they are dependent on markets to provide food, necessary goods and services.
Markets provide way in to paid work and mechanisms for selling commodities and services.
Markets can improve everyone’s lives and livelihoods.
Harming markets can have serious negative impacts on people especially on poor.
MARKET IS COMPOSED OF
Institutions and infrastructure
Others behind the scenes: importers, processors, storage owners, wholesalers, credit suppliers, government officials and policies.
TYPES OF MARKET
‘Physical market’ is a type of market that all the people in the area can go and buy things. Within the physical market. Buying goods without any marketing effort depend on market size.. In today’s world, this level is sinking ever lower.
‘Online market’, is the maximum market size in which people buy goods when subjected to the greatest marketing action that a company can do.
ADVANTAGES OF MARKET
As companies grow because of the market economy, foreign investors will begin to take an interest and help expand.
Companies become creative in finding new products to sell or manufacture and less expensive ways to accomplish their goals.
Friendly competition between companies will encourage efficiency among employees to lower costs for success.
DISADVANTAGES OF MARKET
The exploitation of workers has a big disadvantage because of the working conditions, long hours for less pay for a very few benefit. The large corporations have moved their production to countries where they can get cheap labor with few safety regulations for the workers.
Due to overproduction, industrial machinery will lay idle and there will be no production or profit for the manufacturer. Until the prices drop, the goods will remain unsold and people who cannot afford them have their needs unmet.
Having the market economy system will lead to periods of economic crisis. The economy will stop growing when goods are overproduced and workers are then unemployed. The economic crisis will not end until the next item is found that the wealthy just have to have. Then the cycle starts again.
PAKISTAN CONTRITBUTION IN INCREASING ITS ECONMY
Pakistan’s economy is at a turning point, the World Bank’s bi-annual Pakistan Development Update, launch. Growth recovery is underway, with projected GDP growth approaching four percent, driven by dynamic manufacturing and service sectors. Inflation is steady at 7.9%.Economic activity is steadily improving. Preliminary data for Fiscal Year 2014 (July 2013-June 2014) shows economic growth is growing up, driven mainly by services and manufacturing. Acceleration in growth of large-scale manufacturing came from strong performance of agro-based industries, iron and steel, construction, and fabrics-based textiles. Agriculture appears slightly below target due to inauspicious weather conditions. On the demand side, growth continues to be driven by private consumption. Private investment recovery is easygoing.
MARKET RELATED THEORY
The product life cycle theory states that marketing strategies must evolve along with a product from beginning through degeneration. Companies should modify their marketing mix to ignite interest and educate potential clients. During the growth phase, the effort shifts to secure a wider audience by building brand loyalty, a constant supply chain, and additional distribution channels as defenses against contestants enter the market. As the market for the product matures, weaker players are obsessed out, and there is little differentiation among competitors. Marketing should again shift to attempts to steal market share from other producers through encouragements to distribution channels, such as cooperative advertising, in-store promotions, and volume discounts.
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Perfect competition is a theoretical model that does not exist in the real world and used as a standard to measure other types of markets. In competitive market, there are many small firms selling identical products or services that cannot be linked to a specific seller. The market share of each company is small enough that a single firm’s actions cannot manipulate pricing on products and services. Pricing is also transparent so that consumers are made conscious of different costs between sellers.
A pure monopoly exists when a single company sells with no competition, and there is no similar alternative for the product or service. Monopolies are characterized by formidable barriers to entry, which may include high costs, copyright protection or patents.
This market model has elements of both perfect competition and pure monopolies. Like perfect competition, monopolistic competition involves frequent businesses that are too small to have control over the market. In the monopolistic competition model, each business sells similar but not identical products. Like a pure monopoly, monopolistic competition includes the ability for businesses to change prices.
Oligopolies are characterized by markets that have high barriers to entry and are dominated by a limited number of businesses. Products and services are similar, meaning that a company can lose customers if it raises prices. In oligopolies, price decreases generally don’t provide an advantage as competitors can reduce their prices as well. These factors tend to keep prices charged by each company in a tight range.