What types of ads can be used in media campaigns? Advertising is at the fore in the marketing mix, which creates brand awareness and increases sales. There are many types and forms of advertisements, to serve all commercial purposes, and penetrate into various marketing channels. What are the most prominent types of ads that you can use to promote your products or services? What are the advertising success factors that will help you achieve your marketing goals? What is advertising? Advertising is a paid means of communication through which brands target customers, and it is one of the pillars of the marketing strategy adopted by companies to highlight their brand, and through it they seek to influence the target audience, and it is the cornerstone for launching any advertising campaign for these companies through their marketing channels. For this, companies purchase the so-called advertising space to promote their services, products or brand through advertising media such as: ra...
Defining the market, types of markets and types of market structure in detail
Market definition
A market can be defined as a place where buyers and sellers meet to exchange goods, services and other relevant information. Both parties can meet in a city, state, province or country, and the market may be physical or virtual.
One party (the seller) sells a product or service to a buyer in exchange for financial advantages, and most of the time there is more than one seller and one buyer in the market. The value and prices of a product and service are based on the law of supply and demand in the market.
A market is the collection of all actual and potential buyers of products and services.
market levels
The definition of the market begins with the total population, and the level of the market narrows as we go to a lower level. There are different terms used to understand market levels.
Potential Market: The total number of people in the market interested in buying a product and service
Available market: All those people within the potential market who have sufficient funds to purchase products and services.
Eligible Available Market: All persons in the available market who are permitted to purchase the available products and services.
Taget market: It is the available market segment that the company is willing to serve.
Penetrated market: Those customers in the target market who have purchased products and services.
Market types
Physical Markets:
A physical market is a place where buyers can meet with sellers and purchase goods from them for money. Shopping malls and retail stores are examples of physical markets.
Immaterial Markets/Virtual Markets:
In such markets, buyers buy goods and services online. In such a market, buyers and sellers do not meet or interact physically, and instead the transaction takes place online. Examples – Shopping from Amazon, Jumia, Noon, etc.
auction market:
In the auction market, the seller sells his goods to the highest bidder.
Intermediate Commodity Market:
These markets sell the raw materials (goods) required to produce other finished goods.
Black market:
The black market is a place where illicit goods such as drugs and weapons are sold and it is the market in which all commercial dealings that take place outside all tax laws and trade legislation such as contraband.
knowledge market:
A knowledge market is a group that deals in the exchange of information and products based on knowledge and a knowledge market is a meeting of matchmaking between people who need to learn and people who can provide learning. Knowledge markets are commonly used within communities of practice.
“Communities of practice and a community of practice are a group of individuals who share an interest in the same profession or profession.”
financial market:
It is a place to deal with liquid assets (money) such as stocks, bonds, etc.
market size
Market size refers to the total number of people in a given market who have the ability to buy and sell products and services. When companies launch a new product, they are very interested in knowing the size of the market. For any market, two factors are very important:
1. The total number of buyers and sellers
2.Total funds in the market on an annual basis
Types of market structure
In market economies, there are a variety of different market systems, depending on the industry and the firms within that industry. It is important for small business owners to understand the type of market system they are operating in when making pricing and production decisions, or when deciding whether to enter or leave a particular industry.
The market economy, also called the capitalist economy, is based on private ownership of the means of production and individual initiative, and is subject to the interaction of supply and demand within the market.
1. Perfect competition market
Perfect competition or perfectly competitive market will be the market structure in which several firms offer a homogeneous (similar) product. Because there is freedom of entry and exit and perfect information, companies will make normal profits and prices will remain low due to competitive pressures.
Characteristics of a perfectly competitive market
1. The presence of many companies.
2. Freedom of entry and exit, and therefore sunk costs will be low. Sunk costs are costs that have been spent on a specific project or decision and cannot be recovered.3. All firms produce identical or homogeneous product.4. All firms are price receivers, so the firm's demand curve is perfectly elastic (the demand for a commodity changes the price of the commodity changes). Price taker A situation in which none of the firms in a perfectly competitive market has any influence on the price of the commodity they are selling, and any of the other firms can sell the quantity they wish to sell at the prevailing market price.5. There is complete information and knowledge. Practically perfect or complete information is that all consumers know all things, about all products, at all times (including knowing the likely outcome of all future events), and therefore always make the best buying decision.
2. Total or absolute monopoly market
Monopoly or complete or absolute monopoly is when a certain person or institution is the only supplier of a particular commodity. This contrasts with purchasing monopoly which is a market structure in which a single buyer essentially controls the market since he is the largest purchaser of the goods and services offered by the sellers.
Total or absolute monopoly means that there is only one seller of a particular good or service, and there is generally no reasonable alternative. In such a market system the monopolist would be able to charge any price he wanted due to the absence of competition, but his total revenue would be limited by the customers' ability or willingness to pay the price he would demand.
3. Oligopoly market
Oligopoly is an industry dominated by a few large firms. For example, an industry in which five firms control more than 50% of the market is an oligopoly.
In an oligopolistic market there are various barriers to entry, and new firms find it difficult to establish themselves.
4. Monopolistic competition market
Monopolistic competition is a market structure that combines the elements of perfect or absolute monopoly and competitive markets. The monopolistic competitive market is basically a market that enjoys freedom of entry and exit, but companies can distinguish between their products (make their products different and distinct from the products of other companies). Therefore, they have an inelastic demand curve (the demand for the good does not change the price of the good changes) and therefore they can determine prices. However, since there is freedom of entry, extraordinary profits will encourage more firms to enter the market resulting in normal profits in the long run.
5. Market potential to compete
The potential market for competition is the market in which the possibility of entry of the competitor guarantees the occurrence of competition on prices, even if one or a few companies dominate the market. Completely competitive markets are not possible in real life, while talking about the degree of competition in the market. The more competitive the market, the more intense the competition.
The competing market has three main characteristics:
1. There are no entry or exit barriers from the market
2. No sunk cost (Sunk costs are costs that cannot be recovered after closing the business)
3. Access to the same level of technology (for existing companies and new entrants)
6. The duopoly market or double monopoly
Bipolar monopoly where two firms dominate the market. For example, Pepsi and Coca-Cola, Android and Apple (IOS).
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