Market

The term market is derived from latin word marcatus. It means a place where business is conducted. Market was considered as a place where buyers and sellers gathered to exchange their goods.

According to Philip Kotler, A market consists of all potential customers sharing a particular need or want who might be willing and able to engage in exchange to satisfy this need or want.
A market is said to exist whenever and wherever the buyers and sellers of goods and services meet in search of opportunities for adjustment of their mutual interest and transact business in an atmosphere of free and open competition.

Exchange Circle / Market System

Communication

Flow of goods and services Sellers

Exchange or Market

Money Buyers

FeedbackInformation, Dis/satisfaction

Characteristics of market
It is a convenient meeting place. It consists of two parties buyers and sellers. Buying and selling are the key activities at the market. Essence of communication and negotiation. It facilitates exchange process Market operates for mutual interests. It involves forces of demand and supply. Market exists only when people (buyers and sellers) have needs and wants, they are willingness to satisfy them and they are able to pay. Feedback or response is essential for improvement and continuity of market operation.

Conditions of Exchange
There must be at least two parties buyers and sellers. Each party has something that has value for the other party. Each party is capable of communication and delivery.

Each party is free to accept or reject the exchange offer.

Each party believes that it is desirable to transact with other party.

Exchange is considered as on-going process. It is a process of negotiation. Exchange process ends with transaction.

Marketing
Marketing is treated as knowledge or guideline to achieve business goals It is also assumed as specific skill and ability to satisfy customers at profits. It teaches the managers what they need to do in pursuit of business goals. Marketing does not mean only buying and selling, but it consists of a large number of activities performed for maximum consumer satisfaction. According to Philip Kotler, Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others. According to American Marketing Association, Marketing is performance of business activities that directs the flow of goods and services from producers to consumers.