A MARKET AND MARKET RESEARCH

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					A MARKET


A market is any one of a variety of systems, institutions, procedures, social
relations and infrastructures whereby businesses sell their goods, services and
labor to people in exchange for money. Goods and services are sold using a
legal tender such as fiat money. This activity forms part of the economy. It is an
arrangement that allows buyers and sellers to exchange items. Competition is
essential in markets, and separates market from trade. Two persons may trade,
but it takes at least three persons to have a market, so that there is competition
on at least one of its two sides.[1] Markets vary in size, range, geographic scale,
location, types and variety of human communities, as well as the types of goods
and services traded. Some examples include local farmers' markets held in town
squares or parking lots,shopping centers and shopping malls, international
currency and commodity markets, legally created markets such as for pollution
permits, and illegal markets such as the market for illicit drugs.
In mainstream economics, the concept of a market is any structure that allows
buyers and sellers to exchange any type of goods, services and information.
The exchange of goods or services for money is a transaction. Market
participants consist of all the buyers and sellers of a good who influence itsprice.
This influence is a major study of economics and has given rise to several
theories and modelsconcerning the basic market forces of supply and demand.
There are two roles in markets, buyers andsellers. The market
facilitates trade and enables the distribution and allocation of resources in a
society. Markets allow any tradable item to be evaluated and priced. A market
emerges more or less spontaneously or is constructed deliberately by human
interaction in order to enable the exchange of rights (cf. ownership) of services
and goods.
Historically, markets originated in physical marketplaces which would often
develop into — or from — small communities, towns and cities.[citation needed]
                       Types of markets
Although many markets exist in the traditional sense — such as
a marketplace — there are various other types of markets and various

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organizational structures to assist their functions. The nature of business
transactions could define markets.
Financial markets

Financial markets facilitate the exchange of liquid assets. Most investors prefer
investing in two markets, the stock markets and the bond
markets. NYSE, AMEX, and the NASDAQ are the most common stock markets
in the US. Futures markets, where contracts are exchanged regarding the future
delivery of goods are often an outgrowth of general commodity markets.
Currency markets are used to trade one currency for another, and are often
used for speculation on currency exchange rates.
The money market is the name for the global market for lending and borrowing.
Prediction markets
Prediction markets are a type of speculative market in which the goods
exchanged are futures on the occurrence of certain events. They apply the
market dynamics to facilitate information aggregation.
                        Organization of markets
A market can be organized as an auction, as a private electronic market, as a
commodity wholesale market, as a shopping center, as a complex institution
such as a stock market, and as an informal discussion between two individuals.
Markets of varying types can spontaneously arise whenever a party has interest
in a good or service that some other party can provide. Hence there can be a
market for cigarettes in correctional facilities, another for chewing gum in a
playground, and yet another for contracts for the future delivery of a commodity.
There can be black markets, where a good is exchanged illegally and virtual
markets, such as eBay, in which buyers and sellers do not physically interact
during negotiation. There can also be markets for goods under a command
economy despite pressure to repress them.
Mechanisms of markets
In economics, a market that runs under laissez-faire policies is a free market. It
is "free" in the sense that the government makes no attempt to intervene

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through taxes, subsidies, minimum wages, price ceilings, etc. Market prices may
be distorted by a seller or sellers with monopoly power, or a buyer
with monopsony power. Such price distortions can have an adverse effect on
market participant's welfare and reduce the efficiency of market outcomes. Also,
the relative level of organization and negotiating power of buyers and sellers
markedly affects the functioning of the market. Markets where price negotiations
meet equilibrium though still do not arrive at desired outcomes for both sides are
said to experience market failure.Study of markets




Cabbage market by Vaclav Maly
The study of actual existing markets made up of persons interacting in space
and place in diverse ways is widely seen as an antidote to abstract and all-
encompassing concepts of ―the market‖ and has historical precedent in the
works of Fernand Braudel and Karl Polanyi. The latter term is now generally
used in two ways. First, to denote the abstract mechanisms whereby supply and
demand confront each other and deals are made. In its place, reference to
markets reflects ordinary experience and the places, processes and institutions
in which exchanges occurs.[2] Second, the market is often used to signify an
integrated, all-encompassing and cohesive capitalist world economy. A
widespread trend in economic history and sociology is skeptical of the idea that
it is possible to develop a theory to capture an essence or unifying thread to
markets.[3] For economic geographers, reference to regional, local, or
commodity specific markets can serve to undermine assumptions of global
integration, and highlight geographic variations in the structures, institutions,
histories, path dependencies, forms of interaction and modes of self-
understanding of agents in different spheres of market exchange.[4]Reference to
actual markets can show capitalism not as a totalizing force or completely
encompassing mode of economic activity, but rather as "a set of economic

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practices scattered over a landscape, rather than a systemic concentration of
power".[5]




Wetherby town’s market.
C. B. Macpherson identifies an underlying model of the market underlying
Anglo-American liberal-democratic political economy and philosophy in the
seventeenth and eighteenth centuries: Persons are cast as self-interested
individuals, who enter into contractual relations with other such individuals,
concerning the exchange of goods or personal capacities cast as commodities,
with the motive of maximizing pecuniary interest. The state and its governance
systems are cast as outside of this framework.[6] This model came to dominant
economic thinking in the later nineteenth century, as economists such
as Ricardo, Mill, Jevons, Walras and later neo-classical economics shifted from
reference to geographically located marketplaces to an abstract "market".[7] This
tradition is continued in contemporary neoliberalism, where the market is held up
as optimal for wealth creation and human freedom, and the states’ role imagined
as minimal, reduced to that of upholding and keeping stable property rights,
contract, and money supply. This allowed for boilerplate economic and
institutional restructuring under structural adjustment and post-Communist
reconstruction.[8]
Similar formalism occurs in a wide variety of social democratic and Marxist
discourses that situate political action as antagonistic to the market. In particular,
commodification theorists such as Georg Lukács insist that market
relations necessarily lead to undue exploitation of labour and so need to be
opposed in toto.[9] Pierre Bourdieu has suggested the market model is becoming
self-realizing, in virtue of its wide acceptance in national and international
institutions through the 1990s.[10] The formalist conception faces a number of
insuperable difficulties, concerning the putatively global scope of the market to
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cover the entire Earth, in terms of penetration of particular economies, and in
terms of whether particular claims about the subjects (individuals with pecuniary
interest), objects (commodities), and modes of exchange (transactions) apply to
any actually existing markets.




Gómez Palacio city's municipal market
A central theme of empirical analyses is the variation and proliferation of types
of markets since the rise of capitalism and global scale economies. The
Regulation School stresses the ways in which developed capitalist countries
have implemented varying degrees and types of environmental, economic, and
social regulation, taxation and public spending, fiscal policy and government
provisioning of goods, all of which have transformed markets in uneven and
geographical varied ways and created a variety of mixed economies. Drawing
on concepts of institutional variance and path dependency, varieties of
capitalism theorists (such as Hall and Soskice) identify two dominant modes of
economic ordering in the developed capitalist countries, "coordinated market
economies" such as Germany and Japan, and an Anglo-American "liberal
market economies". However, such approaches imply that the Anglo-American
liberal market economies in fact operate in a matter close to the abstract notion
of "the market". While Anglo-American countries have seen increasing
introduction of neo-liberal forms of economic ordering, this has not lead to
simple convergence, but rather a variety of hybrid institutional
orderings.[11] Rather, a variety of new markets have emerged, such as for
carbon trading or rights to pollute. In some cases, such as emerging markets for
water, different forms of privatization of different aspects of previously state run
infrastructure have created hybrid private-public formations and graded degrees
of commodification, commercialization and privatization.[12]


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Problematic for market formalism is the relationship between formal capitalist
economic processes and a variety of alternative forms, ranging from semi-feudal
and peasant economies widely operative in many developing economies, to
informal markets, barter systems,worker cooperatives, or illegal trades that
occur in most developed countries. Practices of incorporation of non-Western
peoples into global markets in the nineteenth and twentieth century did not
merely result in the quashing of former social economic institutions. Rather,
various modes of articulation arose between transformed and hybridized local
traditions and social practices and the emergence world economy. So called
capitalist markets in fact include and depend on a wide range of geographically
situated economic practices that do not follow the market model. Economies are
thus hybrids of market and non-market elements.[13]
Helpful here is J. K. Gibson-Graham’s complex topology of the diversity of
contemporary market economies describing different types of transactions,
labour, and economic agents. Transactions can occur in underground markets
(such as for marijuana) or be artificially protected (such as for patents). They
can cover the sale of public goods under privatization schemes to co-operative
exchanges and occur under varying degrees of monopoly power and state
regulation. Likewise, there are a wide variety of economic agents, which engage
in different types of transactions on different terms: One cannot assume the
practices of a religious kindergarten, multinational corporation, state enterprise,
or community-based cooperative can be subsumed under the same logic of
calculability (pp. 53–78). This emphasis on proliferation can also be contrasted
with continuing scholarly attempts to show underlying cohesive and structural
similarities to different markets.[14]
A prominent entry point for challenging the market model's applicability concerns
exchange transactions and the homo economicusassumption of self-interest
maximization. There are now a number of streams of economic
sociological analysis of markets focusing on the role of the social in transactions,
and the ways transactions involve social networks and relations of trust,
cooperation and other bonds.[14]Economic geographers in turn draw attention to
the ways in exchange transactions occur against the backdrop of institutional,
social and geographic processes, including class relations, uneven
development, and historically contingent path dependencies.[15] A useful schema

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is provided by Michel Callon's concept of framing: Each economic act or
transaction occurs against, incorporates and also re-performs a geographically
and cultural specific complex of social histories, institutional arrangements, rules
and connections. These network relations are simultaneously bracketed, so that
persons and transactions may be disentangled from thick social bonds. The
character of calculability is imposed upon agents as they come to work in
markets and are "formatted" as calculative agencies. Market exchanges contain
a history of struggle and contestation that produced actors predisposed to
exchange under c An emerging theme worthy of further study is the
interrelationship, interpenetrability and variations of concepts of persons,
commodities, and modes of exchange under particular market formations. This
is most pronounced in recent movement towards post-structuralist theorizing
that draws on Foucault andActor Network Theory and stress relational aspects
of personhood, and dependence and integration into networks and practical
systems. Commodity network approaches further both deconstruct and show
alternatives to the market models concept of commodities. Here, both
researchers and market actors are understood as reframing commodities in
terms of processes and social and ecological relationships. Rather than a mere
objectification of things traded, the complex network relationships of exchange in
different markets calls on agents to alternatively deconstruct or ―get with‖ the
fetish of commodities.[16] Gibson-Graham thus read a variety of alternative
markets, for fair trade and organic foods, or those using Local Exchange Trading
Systems as not only contributing to proliferation, but also forging new modes of
ethical exchange and economic subjectivities.
Most markets are regulated by state wide laws and regulations.
While barter markets exist, most markets use currency or some other form
of money.Any investments made in markets should be carefully analyzed and
read through before investing if the market crashes value of stock may go down
leading to heavy losses
                            Size parameters
Market size can be given in terms of the number of buyers and sellers in a
particular market[17] or in terms of the total exchange of money in the market,
generally annually (per year). When given in terms of money, market size is
often termed market value, but in a distinguished sense than the market value of
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    individual products. For one and the same goods, there may be different (and
    generally increasing) market values at the production level, the wholesale level
    and the retail level. For example, the value of the global illicit drug market for the
    year 2003 was estimated by the United Nations to be US$13 billion at the
    production level, $94 billion at the wholesale level (taking seizures into account),
    and US$322 billion at the retail level (based on retail prices and taking seizures
    and other losses into account).[18]



                            MARKET RESEARCH
    Market research is any organized effort to gather information about markets or
    customers. It is a very important component of business strategy.[1] The term is
    commonly interchanged with marketing research; however, expert practitioners
    may wish to draw a distinction, in that marketing research is concerned
    specifically about marketing processes, while market research is concerned
    specifically with markets.[2]
    Market Research is the key factor to get advantage over competitors. Market
    research provides important information to identify and analyze the market need,
    market size and competition.
    Market research, as defined by the ICC/ESOMAR International Code on Market
    and Social Research, includes social and opinion research, [and] is the
    systematic gathering and interpretation of information about individuals or
    organizations using statistical and analytical methods and techniques of the
    applied social sciences to gain insight or support decision making.[3]
                          Contents
                             [hide]

   1 History
   2 Market research for business/planning
   3 Financial performance
     o 3.1 Top 9 of the Market Research Sector 2009



    8|Page
   4 See also
   5 References
   6 External links
    History
    Market research began to be conceptualized and put into formal practice during
    the 1920s,[4] as an offshoot of the advertising boom of theGolden Age of radio in
    the United States. Advertisers began to realize the significance
    of demographics revealed by sponsorship of different radio programs,
    [edit]Market research for business/planning
    Market research is for discovering what people want, need, or believe. It can
    also involve discovering how they act. Once that research is completed, it can
    be used to determine how to market your product.
    Questionnaires and focus group discussion surveys are some of the instruments
    for market research.
    For starting up a business, there are some important things:

      Market information
    Through Market information one can know the prices of the different
    commodities in the market, as well as the supply and demand situation.
    Information about the markets can be obtained from different sources, varieties
    and formats, as well as the sources and varieties that have to be obtained to
    make the business work.

       Market segmentation
    Market segmentation is the division of the market or population into subgroups
    with similar motivations. It is widely used for segmenting on geographic
    differences, personality differences, demographic
    differences, technographic differences, use of product differences,
    psychographic differences and gender differences. For B2B
    segmentation firmographics is commonly used.

       Market trends

    9|Page
Market trends are the upward or downward movement of a market, during a
period of time. The market size is more difficult to estimate if one is starting with
something completely new. In this case, you will have to derive the figures from
the number of potential customers, or customer segments. [Ilar 1998]
Besides information about the target market, one also needs information about
one's competitors, customers, products, etc. Lastly, you need to
measure marketing effectiveness. A few techniques are:

  Customer analysis
 Choice Modelling
 Competitor analysis
 Risk analysis
 Product research
 Advertising the research
 Marketing mix modeling
[edit]Financial performance
[edit]Top 9 of the Market Research Sector 2009

                                                          Sales in 2009 Growth
Rank                      Company
                                                          (million USD) in %

1       Nielsen Company                                   5,000.0          2.6


        WPP Group - Kantar Group, TNS, Millward
2       Brown, BMRB, IMRB International and Ziment 2,000                   2.5
        Group

3       IMS Health Inc.                                   1,958.6          8.9


4       GfK AG                                            1,397.3          5.4


10 | P a g e
5       Ipsos                                          1,077.0         6.5


6       Synovate                                       739.6           9.5


7       IRI                                            665.0           6.6


8       Westat                                         425.8           0.8

9       Arbitron                                       400.0           5.9

[edit]See also
History
Market research began to be conceptualized and put into formal practice during
the 1920s,[4] as an offshoot of the advertising boom of the Golden Age of radio in
the United States. Advertisers began to realize the significance
of demographics revealed by sponsorship of different radio programs,
[edit]Market research for business/planning
Market research is for discovering what people want, need, or believe. It can
also involve discovering how they act. Once that research is completed, it can
be used to determine how to market your product.
Questionnaires and focus group discussion surveys are some of the instruments
for market research.
For starting up a business, there are some important things:

  Market information
Through Market information one can know the prices of the different
commodities in the market, as well as the supply and demand situation.
Information about the markets can be obtained from different sources, varieties


11 | P a g e
and formats, as well as the sources and varieties that have to be obtained to
make the business work.

   Market segmentation
Market segmentation is the division of the market or population into subgroups
with similar motivations. It is widely used for segmenting on geographic
differences, personality differences, demographic
differences, technographic differences, use of product differences,
psychographic differences and gender differences. For B2B
segmentation firmographics is commonly used.

  Market trends
Market trends are the upward or downward movement of a market, during a
period of time. The market size is more difficult to estimate if one is starting with
something completely new. In this case, you will have to derive the figures from
the number of potential customers, or customer segments. [Ilar 1998]
Besides information about the target market, one also needs information about
one's competitors, customers, products, etc. Lastly, you need to
measure marketing effectiveness. A few techniques are:

  Customer analysis
 Choice Modelling
 Competitor analysis
 Risk analysis
 Product research
 Advertising the research
 Marketing mix modeling
[edit]Financial performance
[edit]Top 9 of the Market Research Sector 2009

                                                          Sales in 2009 Growth
Rank                      Company
                                                          (million USD) in %


12 | P a g e
1       Nielsen Company                           5,000.0   2.6


        WPP Group - Kantar Group, TNS, Millward
2       Brown, BMRB, IMRB International and Ziment 2,000    2.5
        Group


3       IMS Health Inc.                           1,958.6   8.9


4       GfK AG                                    1,397.3   5.4

5       Ipsos                                     1,077.0   6.5

6       Synovate                                  739.6     9.5


7       IRI                                       665.0     6.6

8       Westat                                    425.8     0.8

9       Arbitron                                  400.0     5.9

[edit]See also




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