The term “marketplace” has historically been referred to as the location where goods are traded. Markets enable services, firms and products to be evaluated and priced. There are two roles in markets, buyers and sellers.
At least three actors are needed for a market to exist; at least one actor, on the one side of the market, who is aware of at least two actors on the other side whose offers can be evaluated in relation to each other.
A market allows buyers and sellers to discover information and carry out a voluntary exchange of goods or services. This is commonly done through trade. These trades may be handled a variety of ways, but in small market environments, buyers and sellers typically deal in currency, and goods.
The level of organization or negotiation power of buyers, markedly affects the functioning of the market. Markets where price negotiations do not arrive at efficient outcomes or satisfaction for both sides are said to experience market failure.
What Are Market Influences?
Markets of varying types are influenced by many factors including, price, demand and satisfaction. Pricing and demand are driven by market consumption and competitive environments. The higher the demand and the more compeititon pricing usually begins to fall. Once pricing begins to fall the only market differential for a product or service is consumer satisfaction. To gain economies of scale in a competitive market businesses must focus on leveraging technology to achieve higher consumer satisfaction while minimizing operating cost.
Businesses stumble, unable to read market dynamics, to generate deep insight into customer needs, or to provide motivating solutions that reduce problems in existing markets and/or the creation of new markets. Without know-how to drive market insight into product strategy, organizations mimic competition, or develop technology without clear problem-solving value for the end user or the creation of new value that provides differential.
Is There A New Market Forming?
Without people and businesses consuming goods and services there is no market. Without efficent and effective production of goods and services there is no market. Production and consumption are by products of conversations. A market begins and ends in conversations.
To effectively produce value people have to converse, define and conclude the most efficent means of producing said value. Once produced and brought to market the people whom consume an offering will discuss the experience with other people, one to one to millions. Thus markets are formed, influenced and perpetuated or destroyed by conversations.
Conversations are the new market. The marketplace has a new location with unlimited reach and the conversations are getting organized. The level and intensity of conversations has become the negotiation power of buyers, which markedly affects the functioning of any market. The markets of conversation that do not participate in or enable efficient outcomes of satisfaction are the markets that will be replaced by those that do.
The Socialution to any market lies in the conversations.
Get it? What say you?