A market is an area where two parties may come together to facilitate the sale of goods and services to potential customers. The parties involved in the transaction are usually both sellers and buyers. The market can also be physical such as a retail outlet, in which people meet face to face or virtual such as an internet market, in which there is no physical interaction between sellers and buyers.
There are various types of markets. Commodities markets allow traders to buy commodities with the intent of selling them for a profit. Financial markets provide money for the purchase and sale of goods. Real estate markets allow investors to buy property and then sell it for a profit.
Black markets, which are sometimes called back-room or “underground markets”, are generally not well understood. In some cases, black markets are used to exchange items that have been banned from the traditional markets, such as weapons. Other items traded in black markets include counterfeit products, drugs and illegal goods, which cannot legally be sold or purchased in the United States. Although it is unclear what the intent behind black markets might be, they are capable of generating large profits by being used to facilitate the sales of illegal products, which, in turn, bring criminals into the area. For example, some countries, such as China, have black markets where drugs are sold and purchased without prescription.
Some examples include the flea market, an informal market, which occurs in the back rooms of stores. Flea market buyers and vendors meet in the late evening to discuss current events and discuss what they want to buy. This is not considered to be a formal market, but it occurs in many retail environments. Other examples include garage sales, estate sales and estate cleanouts, which can occur any time of the day or night.
Another example includes business markets. They are similar to consumer markets in that they frequently occur at the end of the day on weekends and on holidays when people need last minute gifts for family or friends. However, business markets differ from consumer markets in that they are generally more rigid in their business buying requirements. These buyers are often referred to as “hard money” buyers.
Market research is the process of gathering information that will allow a business owner to make an informed decision about how to best deal with a current or potential customer. The best market research occurs when executives are not pressured to make quick decisions. The top management team is involved in market research from the very beginning of a sale. It is important that top management understand what types of purchases the business will make and how those purchases should be conducted in order to attract the top customers and to keep them.
Examples include markets for services such as banking, insurance, travel, electronics, pharmaceuticals, engineering, and entertainment. Examples also include government-to-government and business-to-business deals. One example of a government-to-government deal is when businesses sell goods and technology to countries that are in need of such goods and technology or that has an interest in purchasing such goods and technology. An example of a business-to-business deal is when a business sells technology to another company that it owns or is involved with. Many business-to-business deals result in tie-ups or acquisitions between companies.
Other examples include black markets. Black markets are not traditional markets like the consumer and business markets. Instead, these markets exist for the sale of illicit goods and services, including drugs and prostitution. These markets can exist even where the goods and services that are being sold are perfectly legal. In some cases, illegal goods and services are passed off as legitimate goods and services by “middlemen” who benefit from the illegal transaction.