Elements of a Market

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6 Elements of a Market

The key elements that make a market, without which a market is not complete, or the elements on which a market depends are as follows −

Place − The area where the swapping of goods, commodities or services takes place between the seller and the buyer. The place should be convenient to both the parties.

Demand − Market runs on supply and demand. A seller provides the products or services and a buyer wants to fulfill his/her requirements. A product with high demand is supplied more.

Seller − A seller is the person or the party who offers a variety of or even a single product or service to others in return of some valuable item.

Buyer − A buyer is the person or party who needs a product or service and in return is ready to pay some valuable item as demanded by the seller for the product.

Price − This is the cost or the amount that is to be paid for a product or service. It should be fixed; else, it may lead to conflict as well as an imbalance in the seller-buyer relationship.

Government Regulation − The government makes some regulations that both the buyer and seller have to abide. Everyone is treated equally in front of the law. For example, the buyer is not allowed to sell illegal products while the seller is prohibited from buying them.

Product Specification − It is very important to specify the quantity required, ingredients used and all other details of the product as everybody has different tastes and requirements. It is also not necessary that what suits one person should suit another.

These are the key elements that can make or deteriorate a market. A market runs with all these elements together; if one of them is removed, there is no market. For example, if we remove the buyer from the market, the question of who will purchase the commodities arises. In the same way, each element has its own role in the market.



Source: https://www.tutorialspoint.com/marketing_management/marketing_management_overview.htm