Broadly the term market refers to a structure in which buyers and sellers of the commodity interact with each other for making transactions. It is not essential that the buyers and sellers should assemble at one particular place for making transactions. The important thing is that they should be in contact with each other through any means of communication such as letters, telephones, telegrams, fax, internet etc. As a result of the contact/competition, there is tendency to one price of same good to prevail in the market.
Simply put, market is any area where buyers and sellers of a commodity interact with each other to affect purchase and sale of a commodity.
Thus, essential ingredients of a market are: (i) Commodity or service which is bought and sold, (ii) Buyers and sellers to affect transaction. (iii) Close contact among buyers and sellers. (iv) Area where there is communication or competition among buyers and sellers is spread over. Accordingly a commodity may have a local market, regional market, national market or an international market.
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