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Question
Explain in detail the concepts of marketing.
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Solution
There are many concepts associated with the word 'market' and according to the concept, different definitions of the term market are given below:
- Place concept of Market:
The term market is commonly understood as the place where the transaction of buying and selling of goods and services takes place in exchange for money or money's worth. It is the place where buyers, sellers, and other intermediaries come together and exchange goods or services.
In the olden days, place played an important role in defining the market. But in the age of information technology, the term 'market' has a wider meaning than just a place. - Commodity Concept of Market
In the commodity concept of the market, the emphasis is given on 'buying and selling of goods or services'. In this concept, the process of buying and selling of goods or services is important and not the place of exchange. In this process, buyer and seller as well as the commodity exchanged among them play an important role. - Exchange concept of Market
The exchange concept of the market has given the emphasis on the exchange of goods or services between buyer and seller with free consent as well as mutual trust. There should not be any Fraud or
Misrepresentation or Coercion or undue influence during the exchange. The exchange should be voluntary between buyer and seller. - Area concept of Market
The area concept of the market is related to the exchange concept. This concept gives emphasis on free association between buyers and sellers to fix the price of goods for buying and selling.
The price fixed between buyer and seller implies in a certain area only. In this concept, it is not necessary for the buyer and sellers to meet in person. For fixing the price buyers and sellers can regularly take the help of different modern communication media and exchange goods or services. - Demand or Customer concept of Market
The customer is the king of the market. One of the important perspectives of the market is to assess the need or demands of the customer. The market can be studied from the perspective of demand or customer. According to this concept, the aggregate demand by potential buyers for any product in the market. - Space or Digital concept of Market
The emergence of Information Technology gave birth to the new concept of the market called Space or Digital Concept. New and sophisticated E-Commerce Portals and Mobile Applications make buying and selling easy and convenient for buyers as well as sellers. The communication media like telephone, mobile, computer, Internet, etc. have made direct contact between customer and seller.
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