Dynamics of the marketplace is determined by the similarity and dissimilarity of demand and supply. However, this supply and demand are also depending on the market price. It is obviously noticed that the high price of a product tends to discourage a large number of the market. In contrast, lower price encourages a large number of the market to buy more products. So, high price tends to limit the potential market while low price expands the market.
We can see both buyer demand and seller supply is changing heterogeneously.
Now, see how the buyer demand is changed.
- Few buyers learn faster than others
There are different types of buyer who are fast leaner than others. These types of buyers are ready to take risks because they are always seeking innovation of products. That’s why they are the innovators.
- The greater product interest in usage variance
Some have a greater interest in usage interest. They have used a wide variety of goods. It is their nature of habit. However, they are not happy with a single product. That‘s why they are always seeking different types of products. This gives them much pleasure.
- Some buyers having more discretionary income
The discretionary income means the remaining amount of income after fulfilling the basic needs of human being. So, those who have these types of income, their demand are different than others.
So we learn the dynamics of the marketplace in terms of the buyer demand.
However, now see how the seller supply is changed.
- Some seller learning faster
There are some sellers who are very sensible in nature. However, they are a quick learner. They can easily understand the market demand and customer changing behavior. So, they quickly adjust with these changing nature of the market place.
- Some having more resources
Some sellers have more capacity to convince customers than others. However, when a customer comes or visits his store, he tries to convince him for purchasing goods. Sometimes, we also see that if any product is not available to him, then he try to manage this from other shops. At this moment, he tries to keep busy his customers with other products.
- Some prepared to take greater risks
Moreover, there are some sellers who are ready to take greater risks. These risks associated with the fall of demand in the market place, competitors marketing strategy, natural calamities, and political instability.
So, we learn the dynamics of the marketplace in terms of seller supply. This type of marketplace represents market imperfections that create opportunities for both buyer and seller. Thus, the seller is quickly responding to with more market information. This is a competitive differentiation. As a result, it can bring incremental profitability. However, if there is a more profitable market segment that can attract the seller. Then the seller will be able to supply more than the demand in these segments.
Moreover, the seller also needs to serve the customer in a different way. Hence, the price along with the other elements of the marketing mix is considerable factors in designing marketing strategies. This in turns ensures greater customer satisfaction.