The simple market – a simple analogy for understanding marketing


There once was a market, a place where buyers could go to purchase from sellers. Each seller has a stall in the market and is selling only one product. Each stall has a unique name or uses the name of the stall owner.

Buyers arrive and select a stall to purchase their products. They make their decision to buy based on two factors, one is the popularity of the stall or its owner, and the other is the functional or aesthetic advantage of a particular product.

Over time some stall owners become very wealthy because they are more popular or have a functional or aesthetic product advantage. They then purchase another stall and display two kinds of different products at each stall. They give the new stall the same name in order to maximize existing popularity. Those with both popularity and an advantage become very successful.

To develop a functional or aesthetic advantage you must first learn from buyers what they yearn for in the products that they seek. In order to become popular you or your products must be seen by as many buyers as possible.

By Hayden Breese