Definition of Market: Functions and Types of Markets in Indonesia

Definition of Market Functions and Types of Markets in Indonesia –  Of course, already knows that the market is a place for buying and selling goods. The market is one of the favorite places for mothers who want to shop to serve food or fulfill their daily needs. Markets in Indonesia are very diverse, ranging from markets that are open only on certain days, markets that specifically sell one item and many more.

But what is the real market? Then what is the function of the market and whether the market has its own types? Here’s a clearer understanding of the market.

Market Definition

Definition of Market Functions and Types of Markets in Indonesia

The market is a place for buying and selling goods and services. In addition, in the market there is a social relationship between traders and buyers. Sellers and buyers can transact or agree in a sale and purchase contract. The agreed transaction includes the goods, the seller, the buyer, and the price of the goods. In addition, the market can also do a bargain with the aim that the price of the desired goods can be agreed by both the seller and the buyer.

The market also provides various businesses, apart from goods, the market also provides people who sell services or labor by getting money in return. People who provide their services at the market are usually needed by mothers who carry a lot of groceries so they have difficulty carrying these items, with this to make it easier to hire services to bring the goods.

In addition to the above understanding, the following understanding of the market according to some experts:

1. Kotler (1997)

Kotler argues that the market consists of all potential customers who have the same need or want. In the market there can be exchanges to satisfy a want or other need.

2. Ehrenberg et al (2003)

The market in a broad sense is a meeting place between buyers and sellers. Goods or services as products that are exchanged by buyers and sellers. In the exchange, the price for the goods or services exchanged appears.

3. Kuntowijoyo (1994)

According to Kuntowijoyo, the market is not just a place, but also a mechanism that can manage the interests of buyers and sellers.

4. William J. Stanton

William argues that the market is a group of people who have a satisfied interest, namely money that is used for shopping. In addition, the market is also a place that has the will to spend the money.

The Role and Function of the Market

With the market we can easily buy something if we need certain goods. The market sells a variety of goods, ranging from food, electronics, services and even clothing. The function of the market as a place of distribution, or the process of distributing goods and services to the hands of consumers or buyers.

The role of the market is useful not only for producers and consumers, but also for a country. This is because the market is the basis for the running of the economy in a country. The following is an explanation of the role of the market, namely:

1. The role of the market for producers

The market bridges producers in facilitating the sale of their products, and the market becomes a place to introduce an item that we produce. Producers can also get goods or services that can be used for production purposes.

2. The role of the market for consumers

The market becomes an important role for consumers. With the consumer market it becomes easier to obtain the goods or services needed. The wider the market, the easier it will be for consumers to obtain the goods or services they need.

3. The role of markets for development

The role of the market for development is to support the smooth running of ongoing development. The role of the market in enhancing this development is to help provide a wide range of goods and services that are beneficial to development. Of course, the market can be used as a source of government revenue to finance development through taxes and levies. For example, a market that provides material goods.

4. The role of the market for human resources or HR

Trading in the market requires a large number of workers. So with this, the wider the market, the greater the workforce needed. This means that the market also helps in reducing unemployment in the country by utilizing human resources, as well as creating jobs.

In the market, producers can interact directly or indirectly to offer the results of goods produced to consumers. In addition, the market also has several functions, such as the following:

5. Market as price maker

The market becomes a complete place in the sale of goods or services. Buyers will usually bid for the price of goods that have been set by the seller. The seller has thought about how much profit he will get from the item, and the buyer has also considered the use of the item and according to his financial situation.

When the bargaining has reached a mutual agreement, then the goods or services already have a real price. With that market can be called as price formation.

6. Means for promotion of goods

The market is a place to introduce or promote the goods or services of the seller. Promotion is done by providing information on benefits, advantages and functions to consumers.

With promotions, the goods or services that we will sell become more known. Moreover, at this time promoting goods is very easy, it can be by distributing brochures, installing banners and much more. Of course this is an attraction for consumers.

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