Market Space - Definition & Meaning
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.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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