What is a Market?


The market, or trading area for a particular firm, is the area which it seeks to serve with its products or services. From the buyer’s point of view, it is the area within which the buyer knows he or she can find desired goods and services at desired prices. The definition of a market, or trading area, from the buyer’s and the seller’s view may not be the same. Sellers may desire to expand their markets beyond the limits that are normally recognized by buyers. Experience will tell merchants the proper limits of their trading areas if they have the means of measuring the sources of sales. Market areas may change with the development of new shopping centers in adjacent areas. At any given time, a market has its limits set by the area within which the firm can economically sell its goods or services.

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