Types Markets

Types Markets

1. Types of Markets by Product

   • Financial Markets
     • There are a wide variety of markets, such as the money market, foreign exchange, insurance or capital markets. However, no matter which financial market it is, in all cases there are sellers and buyers exchanging financial assets such as bonds and stocks at a defined price for those assets.
   • Consumer Goods and Services Market
     • In this type of market, products or services are traded to satisfy a specific consumer need. Therefore, once the need is satisfied, the good disappears completely. An example of a consumer goods and services market is movie or theater tickets, since once the spectator enjoys the play, the need is satisfied and the ticket is no longer useful.
   • Industrial Goods Market
     • On the other hand, this type of market refers to the different products that are used as inputs for the production of other goods and services. An example of an industrial goods market is the production of aluminum, a material used for the packaging of multiple products, as well as for the construction of automobiles and other major works.

2. Types of markets according to competition:

   • Based on the type of competition faced by producers or product suppliers, markets can be divided into:
     • Imperfect Competition Market
       • In imperfectly competitive market types, it is the firms, but also the buyers, who define the prices of goods and services. Therefore, the fewer firms there are in the market, the more power they have to influence prices. Conversely, the more buyers there are, the more power they have to control price and sales. An example in markets of imperfect competition are the credit cards Visa, Mastercard or American Express, which, being only three companies and operating for a considerable number of demanders, have a great influence on prices.
         • Monopoly Market
           • In the monopoly type of market there is only one company in charge of offering certain goods and services to a community, so it is exempt from competitive figures and has total control over the price and quality of the products. Examples of monopoly markets are public utilities, such as those that provide electricity and gas.
         • Oligopoly
           • An oligopoly is a form of market in which a market or industry is dominated by a small number of large sellers. Oligopolies can result from various forms of collusion that reduce competition and lead to higher prices for consumers
         • Monopsony
           • A monopsony, also called a buyer's monopoly, is a type of market in which there is only one buyer or demander, rather than several. Because of this, this market has imperfect competition.
         • Oligopsonio
           • Oligopsony is a type of market where there are few demanders, although there may be a large number of suppliers. Therefore, control and power over prices and transaction conditions resides with the buyers.
         • Competencia Monopolística
           • Monopolistic competition or competition between monopolies is a type of competition in which there is a significant number of producers acting in the market without there being a dominant control by any of these in particular.
     • Perfect Competition Market
       • In contrast to the previous one, in the perfect competition type of market there are a large number of competitors, so none of them has sufficient power to influence market prices and sales. Moreover, the products are similar and the buyers share very similar characteristics. An example of perfectly competitive markets are apparel brands, which offer similar garments to a large and varied market segment. Translated with www.DeepL.com/Translator (free version)

3. Types of markets by customer

   • According to the person, company or institution that purchases a certain product or service.
     • Industrial Market:
       • This type of market is formed by all those companies that access to the purchase of raw materials or other resources, necessary to carry out the production of another good or service. A dry pasta company that buys flour to make noodles could be a good example of this type of industrial market.
     • Reseller Market
       • In the resale market, companies purchase a product or service and then resell it at a higher price than the purchase price, thus making a profit. Some examples of reseller markets are wholesalers who purchase different products, which they then resell. This is one of the types of markets that has been gaining strength and importance in recent years.
     • Consumer Market
       • This type of market is composed of all unitary buyers who seek access to the purchase of a good or service to satisfy a need or desire. Here, the buyer acquires and uses the good for himself, just as in retail stores.
     • Government Market
       • The government market, buyers are government institutions that purchase tangible and intangible goods in order to provide various services to the community. An example of a government market is hospitals that purchase medical equipment and materials.
     • Labor Market
       • The type of labor market involves the supply and demand of labor. The buyers, in these cases, are the companies that buy the working hours of their employees.

4. Market Types by Geographic Area

   • Global Market
     • Although companies establish their business units, distribution centers and plants in different countries, they still manage to maintain corporate management from their headquarters. McDonald's is a good example of this type of market.
   • International Market
     • Although the global market and the international market are two very similar types of markets, in the latter case, companies maintain their distribution centers and plants in their country of origin together with their headquarters, and extend into other countries only by marketing their products. An example of an international market is the wineries that export wines.
   • National Markets
     • Extienden la comercialización por todo un país. Algunos ejemplos de estos tipos de mercado son algunas marcas de productos alimenticios que logran comercializar en todo un país y tener plantas de producción en distintas zonas.
   • Regional Market
     • Includes all those marketing activities that take place in a specific area of the country and whose geographical area is freely defined. A clear example of a regional market is the regional fairs, where it is possible to taste and purchase typical products of the area.
   • Local Market
     • One of the smallest types of markets, since it only includes consumers in a municipal or provincial area. Examples of local markets range from a small neighborhood bakery to a city shopping mall.