Marketing

Abstract

To an economist a market is any coming together of demand and supply. This may not necessarily be a place although many prices are still arrived at in market places, fairs and other exchanges. We talk of ‘the market’ where the prices of labour, capital and land that we use for production are determined. Refrigerators and cars for example are not sold in a market because in both instances the manufacturer may recommend the price by adding to the cost of production a margin to allow for sales and distribution costs and profits. This does not mean that he can charge what he likes for he is still in competition with other manufacturers to satisfy the consumers’ desires. By contrast most horticultural produce is sold in what is called a free market exchange situation, supply and demand being dominant in determining prices. There are characteristically a large number of buyers and sellers none of whom can individually exercise much influence on the general price levels.