MARKET TYPES

MARKET TYPES

1. Competition

   • Perfect competition: this type of market is characterized by the fact that there is an infinite number of competitors, so none has the power to set prices in the market and practically all products are the same, for this reason perfect competition only exists theoretically but not practically.
   • Pure monopoly market: when strictly a single company offers the goods and services that are sold in a market.
   • Imperfect competition: it refers to different situations that we find in which some are close to perfect competition and others to a total absence of competition.

2. Buyer

   • Industrial buyers: it is made up of all the companies that buy productive resources to carry out their production process.
   • Government buyers: includes all government institutions that buy goods and services to provide public services such as health, or that will be used for public investment.
   • Consumer market: represents all the buyers who seek to acquire the goods and services that are sold in the market to be used to satisfy a need.
   • Distributors: they buy products not to consume them, but to resell them at a higher price than they bought it and thus obtain profits.
   • Labor market: the labor market is one where labor supply and demand converge.

3. Product

   • Consumer products: these are used to satisfy some need, but after fulfilling its objective it disappears.
   • Products of use or investment: these products are interchangeable but unlike others, after covering the needs, it does not expire.
   • Industrial products: are all products that are used as input or raw material to produce other goods or services.
   • Service market: covers the commercialization of products called services, in which the consumer cannot acquire property of the good.
   • Financial markets: they are a physical or virtual space, through which financial assets are exchanged between different economic agents whose transactions define the prices of said assets.

4. According to geographic area

   • Local market: it is the one that serves a small area of ​​the market such as a province or a city.
   • National market: it is characterized because it encompasses and covers an entire country, it extends through all the cities, departments, provinces or municipalities that make up a country.
   • Regional market: the area it serves is not limited to certain political limits; in this case we can speak of a market that covers the northern or southern region of a country. But also a group of countries such as the Central American region, that is, the market region that is served can be narrow or broad.
   • Global market: refers to a market that extends to all countries in the world, therefore, goods and services are produced or only marketed in any country in the world.
   • International market: it is made up of a set of buyers who may be from different countries, these are generally markets served by multinational or transnational companies.