Market Space
This article covers meaning & overview of Market Space from marketing perspective.
What is Market Space?
Market space is a relatively new concept in marketing which is a virtual market place. It is an electronic information exchange environment in which the constraints of physical boundaries are eliminated. A market space is an integration of several market places through technology. This is the reason it is also called an electronic market space.
Characteristics of market space:
• Transactions happen through internet or online media
• Content: There is information about the products available, not products themselves
• Context: Instead of a face-to-face transaction, it is through electronic medium
• Infrastructure: Actual stores and showrooms are replaced by computers and internet
Market space vs market place:
A market space differs from a market place in the fact that it is bi-directional unlike market place which is uni-directional. Here, not only sellers can list their products, but buyers can also list their needs. When there is a similarity between the needs of the buyer and the product offered by the seller, a transaction takes place. Examples of such market spaces are ebay.com, quicker.com.
Advantages of market space:
• Lesser cost because transportation costs and stocking costs are reduced
• Convenience to the consumers. They need not travel around to research or purchase
• It is present everywhere, so the problem of unavailability or inaccessibility doesn’t arise
• No rent for stores like market place
Other examples of market space apart from sites like ebay.com are blogs, forums and websites related to the products or industry. E-commerce websites, micro-blogging sites like twitter and social networking sites are also market spaces.
Hence, this concludes the definition of Market Space along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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