Definition, function, and role of the market to the public

In everyday language, the market is defined as a place where buyers and sellers can meet to buying and selling goods. In economics, meeting the seller and the buyer to make buying and selling can be done via electronic means such as telephone, facsimile, or television. Therefore, the seller and the buyer are not face to face because apart. This kind of market is called abstract market.

The market has an important role in boosting economic activity is good for consumers, producers, and government. For the consumer market makes it easy to acquire the goods that will be used in a production process. In addition, the market also serves as a place to market and promote the products. For the government, through the market, the government can raise revenue from taxes and levies.

The market as a place for buying and selling of goods and services have the following functions:
a. Price-forming function. In the market the process of bargaining between the seller and the buyer. Originally sellers offer goods with high prices and buyers are bidding at a low price. If there is an agreement, it becomes a market or equilibrium price.
b. Distribution function. Markets facilitate the distribution of goods from producer to consumer. Manufacturers can connect with consumers in delivering their goods either directly or indirectly through the market.
c. Promotional function. Manufacturers want the goods or services of their products are known by consumers. Activities introduce products to the consumer is called promotion. The market can be used by manufacturers to promote.
d. The function of employment. Existing traders in the market to hire people as porters, shop assistants, cashiers power, and so on. Therefore, the market serves as employment.

Terms of the market
The market can be formed if meets the following requirements:
a. the seller and the buyer
b. availability of goods and services traded
c. the interaction between buyers and sellers
d. the medium for interaction between sellers and buyers.