Necessary conditions for the functioning of the market. Conditions for the formation and functioning of the market. By product groups

03.04.2020

Introduction

I. Commodity production is the basis of the market. Conditions of its origin and main features…………………………………………………………………….4

II. The concept of "market". The main functions of the market…………………..7

III. The modern economy is a system of markets. Market Economy Infrastructure…………………………………………….11

IV. Conditions for the normal functioning of the market……………..13

V. The specifics of Russia in the transition to a market economy…….14

Conclusion

Bibliography

Introduction

The deep engine of the entire history of mankind is the production wealth. Society can exist and develop only thanks to the continuous renewal and repetition of production processes. Therefore, the economy is the foundation of any society. Mankind has always lived by the economy, and only on this basis could politics, religion, science, and art exist.

Any society faces three basic and interrelated problems of the economy: what to produce?, how to produce? and for whom to produce? The solution to these problems is due to the fact that the material needs of society are unlimited, and on the other hand, economic resources, i.e. funds for the production of products are limited. Under these conditions, society achieves the greatest satisfaction of needs with the economical use of resources.

Economic theory is a science that studies the activities of people in the process of production, distribution, exchange and consumption of economic goods in the context of alternative goals and opportunities for the use of scarce resources. That is why her interests include the search for ways to make the most efficient use of scarce resources, i.e. such their application, in which the maximum desired results will be obtained at the minimum cost.

One of the basic categories of economic theory is the market. The market is a multifunctional concept, it is multifaceted, many-sided. The market is closely connected with such categories of economic theory as production, distribution, exchange and consumption. Often the concept of "market" is used as a well-known and does not require any explanation. In fact, it has many different interpretations both here and abroad, which served as the basis for the assertion that no one still knows what a market is.

I Commodity production is the basis of the market. Conditions of its origin and main features.

The market is a must commodity production. There is no market without commodity production, and vice versa. Commodity production means that the product is not created for the producer himself, but for exchange.

Commodity production has undergone a long evolution. It arose in the conditions of the decomposition of the primitive community, the emergence of private property, during the first social division of labor.) It is known that the simplest form division of labor is a natural division according to sex and age. The very first social division of labor is associated with the separation of cattle breeding from agriculture. - This is such a division of labor in which, first, various communities, and then individual members of the communities began to engage in various types economic activity, resulting in an excess individual products from producers as a result of an increase in the productivity of their labor and to a significant development of exchange.

The social division of labor is the first necessary condition for the emergence of commodity production. With the development of the social division of labor, there is a specialization of producers in the development of any one product. This necessitates an exchange. The social division of labor is a material condition for the existence of a commodity economy.

The cause of commodity production should be considered the economic isolation of commodity producers as different owners. It is the economic isolation of commodity producers that is the necessary and sufficient condition for the transformation of exchange into commodity exchange. Only the exchange between different owners becomes a commodity. Economic isolation is possible under the conditions of both private and collective, group, corporate ownership.

Consequently, commodity production should be understood as such an organization of the social economy when products are produced by separate, isolated producers, each of them specializing in the production of one particular product, so that the purchase and sale of products on the market is necessary to satisfy social needs.

Such an understanding of commodity production defines its essence as the production of products for the market, for exchange, but at the same time indicates the conditions for its occurrence.

Depending on the degree of development of these conditions, the content of commodity production also changes.

Initially, it arises and functions as a simple or undeveloped commodity production, the essential features of which are:

1) social division of labor as a material condition for the existence of commodity production;

2) private ownership of the means of production and the results of labor;

3) the personal labor of the owner for the means of production;

4) satisfaction of social needs through. purchase and sale of products of labor;

5) economic connection between people through the market.

Thus, simple commodity production is the production of products for the exchange of independent small commodity producers - peasants and artisans,

The study of simple commodity production is of great theoretical and practical importance, since it is the breeding ground for the emergence of developed commodity production. In addition, it is still widespread today, because 55% of the world's population are small commodity producers, and in Latin America and Africa, up to 90%.

It is customary to distinguish developed capitalist commodity production from simple commodity production.

Despite the fact that commodity production is basically the same as developed (capitalist) commodity production (because both are based on the social division of labor, private property and the production of products for the market), they have significant differences. Simple commodity production is based on the commodity producer's own labor; the product of labor from the moment of its production to its sale on the market belongs to the commodity producer. Developed capitalist commodity production is based on the use of hired labor, and the produced product is alienated from the producer (it is produced by the worker, but belongs to the capitalist).

Commodity economy under capitalism achieves the highest development. Commodity relations are of a general nature, which is reflected in the fact that:

1) all products of labor are produced only for the market;

2) society satisfies all needs through the market;

3) appears on the market new product- work force. For the transformation of labor power into a commodity, two conditions are necessary: that the worker be legally free, that he be able to independently dispose of his ability to work, and that he be deprived of own funds production and forced to sell their labor power.

The achievement by commodity production of its highest stage of development is connected with the establishment of capitalism in the process of the primitive accumulation of capital.

Primitive accumulation is nothing but the historical process of the separation of the producer from the means of production. It appears to be "original", since it forms the prehistory of capital and the form of management corresponding to it.

The initial accumulation of capital includes two processes:

1) the transformation of the mass of producers into personally free, but at the same time deprived of any means of production. This process means the appearance on the market of a new product - labor power;

2) the concentration of monetary wealth and means of production in the hands of a minority.

The separation of producers from the means of production proceeded very slowly, and in itself this process did not yet constitute an epoch of the primitive accumulation of capital and the transition of commodity production to a new quality.

The accelerator of this process was the active economic role of the state, which contributed to the initial accumulation of capital by separating the direct producer from the means of production, which was based on the forcible dispossession of the peasantry, the "enclosure" of communal lands, the confiscation of monastery and church lands in connection with the reformation of the church, the cleansing of estates from residential buildings of peasants, mass expropriation of land from peasants on the basis of special economic laws.

The main methods of the initial accumulation of large sums of money: the colonial system, colonial conquests, the brutal regime of robbery, enslavement, up to the theft of people in the occupied territories, the slave trade; system of state loans; tax system; protectionist system.

The initial accumulation of capital in Russia had its own characteristics:

1) it took place under the conditions of serfdom, which hindered the development of production;

2) the expropriation of small commodity producers was carried out at the expense of the colossal exploitation of the small peasantry by the small landlords, two-thirds of all the best land remained in the ownership of the landowners;

3) an important role in the initial accumulation of capital was played by internal trade, state bonuses, and subsidies.

The evolution of the commodity (market) type of economy has revealed a wide variety of varieties that, with a certain degree of simplification, can be reduced to the following models: the commodity economy of free competition, the commodity economy of an organized market, the planned-directive and planned-normative models of the commodity economy.

The first model is a market economy in which there is no monopoly, private free competition, an unknown market, isolation of producers, unhindered entry and exit from the market, protection of private property, full independence and responsibility of business entities.

The second model is a market (commodity) economy more high level, which develops in conditions of imperfect competition, the presence of various forms of economic monopoly and state regulation of the economy.

The third and fourth models are a conscious, regulated on the basis of a directive plan (or planned standards) commodity economy with a strict centralized distribution of resources, ignoring the independence of enterprises and evaluating their activities based on the results of the plan. This model has been implemented in our country.

The development of the commodity economy in Russia was controversial. Compared with England, classical in this regard, Russia had significant features, and the main one was the slower change in the forms of feudal-serf relations. And yet, in terms of growth rates in the last decade of the XIX century. Russia was second only to the United States, and at the beginning of the 20th century. and ahead of them. After the reform of 1861, a number of industries developed intensively. Thus, the "old", traditional industries - cotton, wool - for 15-20 years increased production by 2 times, oil production for 1861 - 1891. increased almost 20 times hard coal- by 6, steel smelting - by 10, the production of machines increased by 5 times. The Russian economy developed even faster in the 1890s.

II The concept of "market". The main functions of the market.

The market is one of the most common categories in economic theory and business practice. This category has many different interpretations both here and abroad.

This concept includes the contract of sale; and the totality of business transactions carried out in a particular area of the economy or in a particular place; and the state and development of supply and demand in a particular area of the economy (for example, they talk about a decrease in prices in the metal market or a shortage in the labor market); and the junction of supply and demand for goods, services, and capital. All these (as well as others) definitions of the market have the right to exist, as they characterize certain aspects of this complex economic phenomenon.

The presence of a large number of definitions and interpretations of the content of the category "market" is associated with the development social production and appeals.

Initially, the market was considered as a bazaar, a place retail, market Square. This is explained by the fact that the market appeared during the period of decomposition of primitive society, when the exchange between communities becomes more or less regular, it only acquired the form of commodity exchange, which was carried out in a certain place and at a certain time. With the development of crafts and cities, trade and market relations are expanding, certain places and market areas are assigned to markets.

With the deepening of the social division of labor and the development of commodity production, the concept of "market" acquires a more complex interpretation, which is reflected in world economic literature. Thus, the French mathematician O. Cournot (1801-1877) and the economist A. Marshall (1842-1924) believe that “the market is not any specific market area where objects are sold and bought, but in general any an area where buyers and sellers deal with each other so freely that the prices of the same goods tend to equalize easily and quickly. ” This definition preserves the spatial characteristics of the market, and freedom of exchange and price fixing acts as the main criterion.

With the further development of commodity exchange, the emergence of money, commodity-money relations, the possibility of a break in purchase and sale in time and space arises, and the characterization of the market only as a place of trade no longer reflects reality, because a new structure of social production is being formed - the sphere of circulation, which is characterized by the separation of material and labor resources, labor costs in order to perform certain specific functions for the treatment. As a result, a new understanding of the market arises as a form of commodity and commodity-money exchange (circulation). Such an understanding of the market has become most widespread in our economic literature. The textbook "Political Economy" states that the market is an exchange organized according to the laws of commodity production and money circulation. In the explanatory dictionary of Ozhegov, the meaning of the market is given as: 1) spheres of commodity circulation, commodity circulation and 2) places of retail trade in the open air or in the malls, the bazaar The market can be considered from the side of the subjects of market relations. In this case, the market is defined as the collection of buyers or any group of people who enter into close business relationships and enter into big deals about any product. The English economist W. Jevons (1835-1882) puts forward the "tightness" of the relationship between sellers and buyers as the main criterion for determining the market. He believes that the market is any group of people who enter into close business relations and make deals about any product. This definition of the market is characteristic of the concept of marketing. However, the complex mechanism of the market includes not only buyers, but also manufacturers and intermediaries. In addition, the above definition of the market does not take into account the reproductive aspect of the characteristics of the market.

With the growth of production, there is a natural need for additional labor. A person has the opportunity to “sell” his labor force, skills, abilities. At this time, the labor market begins to take shape, and therefore the purchase of not only the means of production, but also the labor force becomes an indispensable condition for the existence and development of production. The concept of "market" is expanded to understand it as an element of the reproduction of the total social product, as a form of implementation, the movement of the main constituent parts this product. There is a definition of the market as a way of interaction between producers and consumers, based on a decentralized, impersonal mechanism of price signals. This definition of the market as a set of specific economic relations is characteristic of Marxist methodology.

The functions of the market can be properly understood when considered within a larger system. Such a system is a commodity-market economy. It consists of two relatively permanent subsystems:

1) commodity production and

These subsystems are internally inextricably reunited with the help of direct and feedback links.

The initial link of the overall system - commodity production has a direct impact on the market in several ways:

a) useful products are constantly being created in the sphere of production, which just as regularly become objects of market transactions;

b) simultaneously with the production of goods, potential incomes are created for all agents of the commodity economy, which are subject to sale in market exchange;

c) due to the social division of labor on which commodity production is based, the need for market exchange of products is created.

In turn, the market has a largely determining feedback on the process of creating goods. Reverse economic relations constitute the special functions of the market

The most important functions of the market include:

1) pricing function. Products and services of the same purpose that usually enter the market contain an unequal amount of material and labor costs. But the market recognizes only socially significant costs, only the buyer agrees to pay them. This is where the reflection of social value is formed. Thanks to this, a mobile relationship is established between cost and price, which is sensitive to changes in production and the needs of the conjuncture.

2) regulatory function. This function is connected with the impact of the market on all spheres of the economy, primarily on production. The market provides answers to the questions so acutely posed by Samuelson: what to produce?, for whom to produce?, how to produce?.

The market reacts quite quickly to changes taking place in the economy, thus the market is capable of self-regulation of commodity production. If the demand for a product increases, producers will produce more, increasing the price. Saturation of the market with goods reduces demand and price. So the market contributes to the harmonization of production and social needs, maintaining a balance of supply and demand.

It follows from the law of value that the market has a stimulating effect on the efficiency of production, prompting commodity producers to create goods at the lowest cost. If the price decreases, then producers are forced not only to reduce production, but also to look for ways to reduce costs (introduction of new equipment, technologies, improvement of labor organization). If the price rises, then consumers must look for additional income, which increases their labor activity.

As a result, the spontaneous actions of entrepreneurs lead to the establishment of more or less optimal economic proportions. The regulating “invisible hand” of Adam Smith operates: “The entrepreneur has in mind only his own interest, pursues his own benefit, and in this case he is guided by an invisible hand to a goal that was not at all part of his intentions. In pursuing his own interests, he often serves the interests of society in a more effective way than when he consciously seeks to serve them.

AT modern conditions the economy is controlled not only by the “invisible hand”, but also by state levers, however, the regulatory role of the market continues to be preserved, largely determining the balance of the national economy.

3) information function. The market is a rich source of information, knowledge, information necessary for all its subjects. All this diverse information is embodied primarily in prices. Operational, extensive and at the same time compact information contained in prices makes it possible to determine the fullness or scarcity of markets for each type of product, the level of costs for their production, technologies and directions for their improvement.

4) sanitizing function. With the help of competition, the market clears social production of economically unstable, unviable economic units, on the contrary, it gives the green light to more enterprising and efficient ones, and due to this, differentiation of commodity producers is carried out. As a result of this, the average level of sustainability of the entire economy as a whole is continuously increasing. According to Samuelson, between a third and a half of all retail stores in the US go out of business within three years of opening. Often die in competition and large firms. In conditions of concentration of production and capital, monopolization deforms the sanitizing mechanism of the market. Yet nowhere in the capitalist world does monopolization suppress competition so much that natural selection ceases.

5) intermediary function. Economically isolated producers in conditions of a deep division of labor must find each other and exchange the results of their activities. Without a market, it is practically impossible to determine how mutually beneficial this or that technological and economic relationship between specific participants in social production is. In a normal market economy with sufficiently developed competition, the consumer has the opportunity to choose the optimal supplier. At the same time, the seller is given the opportunity to choose the most suitable buyer.

The function of establishing the social significance of the produced product and labor costs. If the product is sold, it means that its public recognition has taken place - the recognition of its social utility. Of course, this function is realized when the consumer is free to choose products. That is, this function can operate in conditions of deficit-free production, in the absence of a monopoly position in production; in the presence of several producers and competition between them.

III . The modern economy is a system of markets. Market economy infrastructure.

From the point of view of the maturity of market relations, one can speak of emerging (Russia, Ukraine) and developed (USA, England, Sweden, etc.) markets. There are two models of the developed market: American and Swedish.

The American model is characterized by minimal state intervention in the economy, a small share of the public sector, a focus on free enterprise and the free market, and a minimal (relatively) social protection population,

The Swedish model - high social security of the population, significant state social spending based on high taxes, a significant redistribution of national income through the state budget and at the same time reliance on private property, competition. It is often defined as follows: "Socialism is in distribution, capitalism is in production."

You can talk about other models (Lyons, German, etc.). Russia is developing its own model of the modern market, which to the maximum extent reflects the historical situation in which we live.

Market infrastructure is an interconnected system of institutions, organizations operating within specific markets.

and perform certain functions.

In the market of goods and services, the infrastructure is represented by commodity exchanges, wholesale and retail trade enterprises, firms that provide participants with market information, engage in marketing, advertising, etc. This part. infrastructure covers a huge economic space between producers and consumers; its functioning ensures the regulation of sales and customer service. This infrastructure responds to demand signals and balances the product market.

In the labor market, the infrastructure is labor exchanges, systems that provide training and retraining of workers. In the securities market, it is primarily a stock exchange where stocks and bonds are bought and sold. By connecting investors and savers, the exchange facilitates intersectoral and interregional capital flows.

The credit market infrastructure is a modern two-tier banking system (Central Bank and commercial banks), Insurance companies and various funds capable of mobilizing available funds and turning them into loans.

Public finances (central and local budgets) are also part of the market infrastructure. Budgets through taxes, as well as through spending, allow the state to solve those problems that the market is retreating from.

The next element of the infrastructure is legislation, the legal system that regulates the interaction of market participants. The absence or weak development of the legal system turns the market into a "wild" one, and makes the economy criminal.

These are the main elements of the market infrastructure. Once again, we note that the market cannot function normally without a developed infrastructure. Therefore, the countries entering the market, and hence our country, are faced with the task of creating a market infrastructure.

IV . Conditions for the normal functioning of the market.

For the normal functioning of the market, the following conditions are necessary:

1) the presence of independent economic entities, their competence in concluding transactions and disposing of their income. That is, the opportunity for everyone to engage in any business activity not prohibited by law;

2) a multisectoral economy, in other words, a variety of forms of ownership and, accordingly, types of enterprises. The basis of a market economy is private property; of particular importance for the modern economy is joint-stock (corporate) property.

3) competition. Competition is the soul of the market. If there is competition, then there is a market. The condition for competition is the presence of at least several sellers (producers), as well as several buyers;

4) free market prices, which are established in the process of competition. State regulation of prices for certain types of goods and services is allowed. Prices transmit information about changes in the market situation, stimulate the use of the most economical methods of production, distribute and redistribute income;

5) sustainable monetary and financial systems. The stability of the monetary system implies the absence of inflation (or its minimum level), and stable financial system presupposes, first of all, the stability of taxes;

6) the presence of a developed market infrastructure (see below about it);

7) supplementing the purely market mechanism with state regulation of the economy. The question is only how to regulate, in what form and dose. It is important to note that state intervention in the economy should be minimized, it should not suppress and destroy the market;

8) openness of the national market, its connection with the world market;

9) stability of the political situation;

10) the ability of all participants to adapt to the requirements of the market, to comply with the "rules of the game".

V .Specificity of Russia during the transition to a market economy.

The development of the market in Russia, as elsewhere in the world, takes place under circumstances that people do not freely choose, but which are given to them and passed on from the past.

After the end of the civil war in the 1920s, market relations were widely developed. But at the turn of the 20s and 30s, the market was cut down to the ground: free enterprise was prohibited and competition was completely excluded. The complete domination of state monopolism was established, which relied on direct coercion and order measures.

Absolute market monopoly was expressed in two directions:

a) the state monopolized the production and sale of the bulk of goods;

b) it performed the role of an all-encompassing monopsony, since it purchased the bulk of raw materials (for example, the products of collective farms).

As a result, the absolute monopoly in the sphere of commodity-money relations has become the exact opposite of a competitive market.

The conditions for the functioning of the market in our country were such that its positive role in the development of the economy was practically not manifested. From this follow statements about the absence of a market, which does not quite correctly reflect reality, since there were acts of sale and purchase, which was and is recognized by individual economists in Russia and the West (for example, V. Oyken and others). Personal subsidiary farming in different years had a different degree of marketability, but without it the peasant could not exist. Thus, the market was and is, but it is seriously deformed.

The main features of market deformation under the conditions of the administrative-command system:

1) the absence of numerous market entities organizing their economic activities on the basis of different forms of ownership;

2) excessive centralization in the distribution of commodity resources and their movement, lack of independence in commercial activities);

3) an extremely high degree of stateization of the economy, the almost complete absence of a legal private sector with an expanding "shadow" economy;

4) super-monopolization of production, which, in the conditions of economic liberalization, led to the unwinding of inflation;

5) deformation of the economic interests of subjects of market relations (for example, traders have an interest not to sell, but to hide goods), lack of motivation for effective work;

6) an extremely distorted structure of the national economy, where the military-industrial complex played a leading role, and the role of industries focused on the consumer market was downplayed;

7) non-competitiveness of the predominant part of industries, aggravated by a protracted structural crisis in agriculture.

In the 1990s, economic transformations were undertaken, which were aimed at the transition from an administrative-command system to a market system. However, for the transition to a market economy, one has to overcome great difficulties. They are connected primarily with the fact that there is a huge distance between the start - an absolute market monopoly and the finish - a developed market. In order to eliminate market distortion, to eliminate the diseases of the market economy (unemployment, inflation, instability), it is necessary to create conditions for the transition to a market economy in Russia and its subsequent development. These conditions are:

1) the presence in the economy of free forms of ownership and diverse forms of management, as well as free competition between them, a sufficient number of manufacturers, there must be at least 15-20 manufacturers of the same type of products;

2) ensuring the freedom of economic activity, the choice of partners in economic relations, independence, the ability to freely dispose of part of their income, the absence of a strict administrative distribution of goods, i.e. free purchase and sale;

3) formation of a free pricing mechanism, the right of market entities to set their own prices;

4) completeness and access to information about the state of the market of all business executives;

5) availability of market infrastructure, i.e. a complex of industries, systems, services, enterprises serving the market;

6) free maneuvering of resources;

7) preservation, along with the spread of market relations, of a significant non-market sector of the economy;

8) consistent integration of the national economy into the system of world economic relations

9) provision by the state of social guarantees to citizens.

The specifics of Russia's entry into the system of a socially oriented market economy is determined by the following:

· relatively low level of development of productive forces in comparison with developed countries;

the weakening of world economic ties;

· the continued dominance of elements of the administrative-command system;

· deeply monopolized structure of the economy and major markets;

Separation from a person

· the need to combine federal and republican-regional interests.

The transition to market relations is carried out extremely unevenly in various sectors of the Russian economy.

Russia is characterized by the relative maturity of the consumer goods market. Compared to socialist times, its incomparably greater saturation, a sharp expansion of the assortment, the removal of the problem of shortages and queues, as well as quite active competition among sellers, are striking.

The disadvantages of the current state of the consumer goods market in Russia include the predominance of imported goods, which leads to economic dependence.

The investment goods market is in a difficult and controversial position. A significant part of raw materials is exported abroad. In the context of the economic crisis, the demand for investment goods is generally low. And in the part in which it exists, the demand is directed to imported goods.

The labor market suffers from serious structural distortions on both the supply and demand sides. Structural restructuring of the economy requires changes in the field of employment. The closure of mines, defense enterprises, etc., leads to unemployment and, at the same time, to the need for large-scale retraining of a significant part of the workforce. A serious shortcoming is also the lack of complete information on the supply of jobs.

The real estate market (the land factor) is developing: production, office and residential premises are being actively sold and rented. So far, land plots practically cannot be an object of purchase and sale. Renting is widespread in this area.

Until the crisis of 1998, the most rapidly developing credit financial sphere: commercial banks, investment institutions, currency and stock exchanges, as well as relevant economic instruments(credit, mortgage, securities - bonds, shares). However, the economic power of commercial financial institutions is still small. The insufficiency of lending in general, the inability to invest in the production sector are the most important shortcomings of the activities of commercial banks. It was they who brought the country's banking system to the brink of complete collapse in the summer of 1998. The refusal of the state to pay its obligations (the so-called GKO) led to the virtual bankruptcy of most banks that did not have a more solid foundation for their business.

The transition to a market economy in certain regions of Russia is also uneven. This process proceeds most rapidly in Moscow, where the main banks and other financial institutions are concentrated, and private entrepreneurship is widespread. On the contrary, in remote regions and in rural areas, the formation of market relations is extremely slow.

The formation of a market economy in Russia is influenced by such factors as the tendency of a considerable part of the population to state partenalism (a significant role of the state in the redistribution of incomes of the population) and social forms of appropriation ( free education, medical care, etc.). This leads to the preservation of a significant economic role of the state in financing social needs and the limitation of market factors in the social sphere.

Based on a strong regulatory role of the state Russian model market economy is based on a number of long-term factors: the predominance of extractive industries, the non-competitiveness of manufacturing industries (with the exception of the military-industrial complex), inefficiency Agriculture. These factors in modern conditions constrain the functions of the market. Therefore, the program of economic reforms should take into account these points and reflect a certain logic and the following milestone tasks for the formation of a market economy in Russia:

1) denationalization of the economy, privatization, development of entrepreneurship;

2) formation of the market and its infrastructure;

3) demonopolization of the economy and the elimination of organizational structures that have developed within the framework of the administrative-command system and hinder the development of the market;

4) gradual restriction of state control over prices;

5) implementation of tight monetary and financial policy aimed at limiting the money supply in circulation;

6) the implementation of an active structural and investment policy that would ensure the necessary structural shifts in the national economy in the direction of social reorientation.

Thus, economic reforms in Russia should be “attuned” to the individual, to satisfying his needs and developing his personality.

Conclusion

1. The market is a complex and multifaceted category, the concept of which has changed with the development of social production and circulation. The main modern approaches to the definition of the concept of the market include the Marxist approach and the approach of the “Economics” school. All currently existing definitions of the market are correct, as they characterize certain aspects of this complex economic phenomenon.

2. The market can exist only under certain conditions, which include: social division of labor and specialization; relations of exchange of results of labor; free exchange of resources; economic isolation of market entities, which, in turn, can be realized only when all of them are completely independent, autonomous in making decisions about what, how and for whom to produce.

3. The essence of the market is reflected in its economic functions, expressing the main purpose of this category. The main functions of the market include pricing, regulatory, information, sanitizing, intermediary functions and the function of establishing the social significance of the product produced and labor costs.

4. The market has a complex, branched structure, which covers all spheres of the economy with its influence. The division of markets into types is somewhat arbitrary, since in life the same market can reflect different signs. The structure of the market is constantly changing, which is associated with the development of social production and circulation.

5. The modern economic system of Russia is a transition from an administrative-command system to a market system. The market existed even under the administrative-command system of management, but it is severely deformed. To eliminate market distortion, it is necessary to create certain conditions for the transition to a market economy in Russia and for its subsequent development.

List of used literature

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4. Dobrynin A.I. Economic theory: Textbook for universities / Ed. A.I. Dobrynina, L.S. Tarasevich. – M.: SPB GUEF, 2000. – 544 p.

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The market is not created for one day. This form of economic organization has been formed over the centuries and has proven its effectiveness, therefore, it must exist and develop in the future. To do this, it is necessary now to create the conditions that will serve as the basis for the normal functioning and development of the market economy.

Transition to market relations - difficult process which has passed in many countries. Mankind has accumulated a certain amount of experience, identified patterns of market formation, which must be used in our country. There are many conditions for the normal functioning of the market, but three main ones can be distinguished from them. In order for the market to start functioning as an independent full-fledged system, it is necessary to have diverse forms of ownership, have a reserve of production factors and create a market infrastructure.

The main conditions for the transition to the market - a change in property relations, the creation of a variety of forms of ownership. Any form of ownership that stimulates entrepreneurship, competition and the further development of market relations should have the right to exist.

The practice of market relations has convincingly shown that in modern conditions the most effective is shareholding form of ownership. This is determined by the following factors.

1. Joint-stock ownership through the sale of shares quickly mobilizes significant capital and helps maintain the proportion between supply and demand. Remember the mechanism of the market: its main driving force and main indicator are prices. If demand outstrips supply, then prices grow and it is necessary to expand production. Rising prices and, accordingly, an increase in the rate of profit attract additional capital to this industry. The issued shares immediately find their buyer, and additional capital is poured into production, which is used for expansion.
2. Equity capital democratizes the economy. Those problems that we have been trying to solve since 1986 - the problems of democratization of production and management - will receive new opportunities for their solution. Owning shares of his company, any employee is interested in increasing production efficiency, profit growth. He will participate in the search for development reserves and in the optimization of management. In industrialized countries, the majority of the employees of every enterprise own its shares and receive some part of the income in the form of dividends, and this part is constantly increasing.
3. Shareholding stimulates the development of production diversification. Diversification - it is a form of cooperation involving the investment of capital in any industry. For example, any big company can afford (and does) invest the profits not only in its own production, but also in the construction of sports facilities, the purchase of hotels and restaurants, the maintenance of gas stations, the production of shoes and medical equipment, confectionery and metal-cutting machines - in a word, where you can get additional profit. What does it give? Much: for the firm - the stability of income (if things go badly in one industry, profit in another will help correct the overall picture), for production - additional capital from other industries, for the market - an increase in its density (i.e. mass and range of goods) .

These factors show that joint-stock ownership is the most rational for the development of the modern market. But in order to create a joint-stock company, shareholders are needed, i.e. people who buy shares in private ownership. Therefore, private property serves as a prerequisite, the initial form of creating joint stock. In our country, it was necessary to start precisely with private property: to restore its right to exist, the right to have every person own any factor of production.

This problem is inextricably linked with another: denationalization of the economy, denationalization, privatization. These three concepts in our periodicals are often identified with each other. In reality, these are different phenomena, and it is necessary to clearly understand the differences between them.

Denationalization means a reduction in the share of the public sector in the economy. This can be achieved not only by denationalization or privatization. Let us assume that the share of the state sector is 90%, and the rest is produced by cooperatives, collective farms and individual, private enterprises. If on next year the share of cooperatives, collective farms and private entrepreneurs will increase, then the public sector will account for 85%, then 80%, etc. That is, the process of denationalization begins. This process can be stimulated through the tax system, investment policy, improvement of economic law.

Denationalization - sale of enterprises previously nationalized by the state and their shares in the ownership of private companies, joint-stock companies, etc.

In order for denationalization to be effective, a number of conditions must be met.

1. Clearly define subject of ownership. The untimely solution of this problem in our country has led to the fact that enterprises, real estate belonging to the people, for a pittance passed into the hands of former party apparatchiks and employees of executive committees different levels. The organized State Property Fund somewhat relieved the situation, although it did not solve the problem. The experience of countries with market economies (which have denationalized a lot of state property in recent years) shows that the most rational organization of this type are holdings, which are best created at the level of individual regions. Based on expert assessments, they must determine the sale prices of enterprises, act as holders (custodians) of the shares of each enterprise and sell them when a decision is made to sell them.
2. Legislatively establish mechanism for distribution of shares of denationalized enterprises. In all developed countries, in this case, a share is allocated, which is necessarily sold to a certain group potential buyers: employees of this enterprise (and at prices significantly below par), foreign firms, national firms, residents and financial institutions of the country. In this case, the process of democratization of production continues, foreign capital is attracted, and hence technology, the process of diversification and attraction of free cash capital is developing.

The result of denationalization is expressed in the demonopolization of the economy, democratization of property relations, obtaining an anti-inflationary effect, and it occurs in two directions:

o the burden on the budget is reduced, as the sold enterprises are removed from budget financing and subsidies;
o through the sale of shares, free cash is withdrawn from circulation.

The corporatization process in our country has shown shortcomings that need to be worked on in order to obtain the maximum socio-economic effect. The mechanism for distributing funds received from corporatization was not thought through to the end (they mainly go to state funds to solve social problems). Of course, this is important, especially in the conditions in which the country was in the 1990s, and it is clear that the state did not have enough funds to ensure social assistance population and pensions.

At the same time, one should not forget about the other side of the problem. The matter is that the corporatized industrial enterprises demand radical reconstruction. They will not be able to work profitably on the existing worn out, obsolete equipment, and even more so they will not be able to re-equip production to produce products required by the market. And this means that they are doomed to bankruptcy. The consequences of this should also be clear: the cessation of production, a new group of unemployed who need to be supported and employed, not to mention the fact that there will be no budget revenues from such an enterprise.

Another problem is connected with the subjects of joint-stock property. During corporatization, it was assumed that the main owners of enterprises would be labor collectives. But in accordance with the corporatization rules, only the collectives of those enterprises that were corporatized according to the second option could become the real owners of production. In this case, the collective would receive 51% of the shares. However, under this option, the team does not receive any benefits; on the contrary, the conditions for corporatization are very strict. In order to buy out such a package, each member of the team had to pay a significant amount (especially for large enterprises).

Taking into account the conditions in which the people lived, when the savings accumulated over many years, stored in the Savings Bank, actually disappeared, prices were constantly growing and all the money received wage practically went to the current consumption, it was very difficult to do this. The workers simply did not have the money they needed to buy back the shares. As a result, the shares not redeemed by the team were transferred to the disposal of the State Property Fund and were put up for auction, where they were able to be bought by representatives of that small segment of the population who managed, using their official position and state property, to put together private capital. As a result, the collectives ceased to be masters of their production.

Thus, the corporatization process gave rise to new socio-economic problems that had to be urgently addressed.

Under privatization as one of the forms of denationalization is understood the purchase of state property by individual private individuals. Practice has shown that such privatization is possible in our country, mainly in the sphere of trade and services.

The second condition for the formation of the market is creation of reserves of production factors. It is possible to develop and realize the advantages of the market mechanism only when there are reserves of means of production and labor in society, since in order to restore the balance of supply and demand in the face of rising prices, not only additional capital is needed for investment in production, but also additional factors of production that can be buy with invested capital.

The issue with the means of production is easier to solve: in practice, there are three ways to solve the problem:

1) buy additional means of production;
2) increase the capacity of the production base through the introduction of new technologies;
3) create a reserve of means of production at enterprises.

The first way is related to additional costs time, since the equipment needs to be ordered, bought, installed, sometimes it is necessary to build new premises, and most importantly, the equipment that is currently on the market is bought and, as a rule, is the same as the current one, and this reproduces the old production structure . Therefore, it is more efficient to carry out various combinations of the last two ways: the modernization of technological processes and the use of reserve capacities. Typically, such reserves in the form of installed, but temporarily non-operating equipment are available at each enterprise.

The problem of labor reserve is much more difficult to solve. Here we are talking not only about people additionally involved in production, but also about unemployment. Everyone admits that unemployment is a negative phenomenon in a market economy, but this objective necessity. It must be borne in mind that in modern conditions unemployment is not the same as Marx wrote about a century and a half ago. A new unemployment factor appears - increased labor force mobility: people are looking for a more profitable job, changing their specialty, undergoing retraining, etc. This is the so-called transitional, or frictional, form of unemployment associated with the demographic situation, with the distribution of productive forces, with a person's search for opportunities for self-expression and solving their economic problems. Structural unemployment also exists in developed countries. It arises with major structural changes in the national economy. Since a change in the structure of our economy is objectively necessary, we will also have this form of unemployment.

In any case, all forms of unemployment are an additional source of labor for functioning enterprises with the expansion of production. And we must keep in mind that a market economy cannot provide 100% employment, and this is not necessary. A permanent reserve of labor force is needed in the form of unemployment. However, this does not mean that everyone is waiting for a place in the reserve army of labor. As a rule, only certain categories of the employed are more at risk of becoming unemployed. First of all, these are unscrupulous, unskilled workers, workers obsolete professions those with no experience, etc. At the same time, if a conscientious skilled worker finds himself out of a job, it is only for a very short time. As a rule, he will always be able to find a job, but he will choose the conditions of employment. All these points refer to a normally functioning market economy, but during its formation, the problem of unemployment sharply worsens, since the transition to a new type of economy is always accompanied by a decline in production.

The third condition for the creation of a market and its normal functioning is the existence of a market infrastructure. We have only separate elements of this sphere, which also need reconstruction. In fact, the infrastructure in Russia needs to be created anew.

For the market of goods and services, we have only retail trade, but the network of stores is clearly insufficient, their structure, quantity, specialization and quality of service are far from ideal. Even the emerging network of private stores does not solve the problem, because the goals of their creation and operation are one-sided, and the working conditions do not stimulate competition. Structure wholesale trade is in its infancy, it is carried out mainly by the former structures of the Gossnab, modified into commercial firms, partly by the manufacturers themselves and small private firms. Trade is conducted directly from enterprises or bases; wholesale stores are still missing.

The system is very important for the normal functioning of a market economy. commodity exchanges. Their main task is to streamline the market for raw materials and other goods. Exchange trading provides the possibility that at the current prices there will be neither a shortage nor overstocking, i.e. it serves as a regulatory link between producer and consumer.

Some work has been done in Russia to create commodity exchanges - specialized, regional, universal. Almost all of them began to function, but unlike commodity exchanges in a developed market economy, they sold only goods that they had in stock.

Actually modern commodity exchange - this is a market for contracts for the supply of products in the future with relatively small volumes of real sales. The economic role of the exchange is that it contributes to the stabilization of prices, the instruments of which are the mechanism of the functioning of the exchange and the established rules of exchange trading. One of the basic rules is the publicity of the deal. Sellers announce the quantity of offered goods for delivery, terms of delivery and prices. After an agreement has been reached with the buyer, the main provisions of the concluded contract are recorded on stands specially installed in the halls.

Each exchange publicly sets prices at the beginning and end of the day, and there are certain rules that limit price fluctuations within one day. The exchange constantly collects and processes information about possible suppliers of goods, about the needs of consumers, makes forecasts about future needs and prices. In addition to the fact that the exchange exercises control over the quality of the lots of goods sold and, simultaneously with the manufacturer-supplier, is responsible for violation of the terms of the contract, it develops standards for goods, registers trademarks of firms admitted to participate in stock trading. Domestic exchanges practically did not perform these functions and, in fact, were wholesale stores selling certain types of raw materials. That is why most of them did not last long.

The market cannot exist without determining future needs, demand for certain types goods, since in modern conditions this would lead to significant losses and even raise the question of the legitimacy of the existence of individual firms. Such work is carried out by specialized organizations and divisions within firms that perform marketing functions.

The most general definition marketing, found in economic literature characterizes it as foresight, the management of demand for goods, services, labor, territories and ideas through exchange. From the standpoint of a firm or enterprise, marketing can be defined as a complex system of organization and management of production, commercial and marketing activities, focused on the satisfaction of specific consumers and certain groups of buyers. It reflects one of the main principles of marketing - targeting of production, i.e. production of products for a specific consumer, predetermined.

The highest goal of modern marketing is not just to meet the specific needs of the buyer, but a comprehensive solution to his problems based on an analysis of enough accurate information about the most significant aspects of the consumer's activities, his goals, achievements and intentions. We are talking not only about products, but also about a system of interrelated products and services, on the production of which the manufacturer focuses its activities.

The creation of market relations in the country requires the development of its own marketing concepts. For industrial enterprises this is needed for a long time. So far, enterprises have been working almost blindly, only thanks to the previously established economic ties. But even these ties were gradually destroyed due to monopolistically inflated prices for their products by suppliers, their conversion to the production of goods that are more profitable at the moment. Obviously, this practice could not lead to an increase in production and sales.

The state, in our opinion, should take over strategic management industrial complex and in no case do not withdraw from this under the pretext of corporatization of enterprises. It would be more correct to fight monopolization by creating favorable economic conditions for the development of private business, for long-term foreign investment. In that case, on Russian market there will be strong, capable competitors.

labor market presupposes the existence of a labor exchange, which should keep records of vacancies, the number and structure of the unemployed, help them find work, pay benefits, ensure the retraining of personnel in accordance with the demand for labor, and organize public works.

capital market requires the creation of stock and currency exchanges. Work in this direction in our country is actually just beginning.

In addition to private infrastructure appropriate to a particular type of market, it is necessary to create general purpose infrastructure. We are talking about the creation of credit, banking and monetary systems capable of ensuring the normal functioning of the market. Not a single market will be able to work without this, and, moreover, this infrastructure, not being a product of the market itself, at the same time ensures its unity, integrity throughout the country and in relations with other countries. Only the state can perform the functions of creating such an infrastructure and maintaining it.

Simultaneously with the creation of conditions for the functioning of the market, which we discussed above, it is necessary to consider a whole range of problems, without the solution of which the market cannot exist.

One of the main problems is demonopolization of the economy. Monopoly manifests itself in various forms. A typical type of monopoly is a producer monopoly. From the first years of Soviet power, giant enterprises began to be built in our country, which initially became the only producers of a certain type of product, i.e. created monopolies. The consequences of this are well known: rising prices, declining product quality, curbing scientific and technological progress. In addition, failures in the operation of such monopolist enterprises inevitably lead to failures in related industries and to disruptions in the functioning of the national economy as a whole.

In addition to this form, our economy was characterized by the presence of peculiar monopolies: the monopoly of state property and the monopoly of distribution. Starting the fight against monopolies, one must remember one rule: a monopolized economy can only be managed by administrative methods. Therefore, if the administrative system is completely destroyed before the monopolies are eradicated, then this can make the economy unmanageable. We are witnessing some facts of this phenomenon now. Therefore, the fight against monopolies, i.e. demonopolization should be carried out through the creation of effective, consistent laws on competition, on entrepreneurship, etc. Such documents should outlaw monopolism. They should reflect that if enterprises are caught, for example, in collusion on prices or division of spheres of influence, if monopoly tendencies appear on the market (your products are 90% of the market, prices do not change, quality does not improve, etc.), then you may be taken to court.

It is not enough just to create laws, you need to have organizations and institutions that implement them and responsible for their performance. We only pass laws on the economy, but their implementation is often left to chance. In developed countries, the functions of implementing legislative acts are assigned to sectoral ministries.

All of the above activities should be carried out within the framework of the developed antimonopoly policy. First of all, it is necessary to single out the object of demonopolization. In any economy, so-called natural monopolies can exist (for example, a single network of railways, gas pipelines, a single energy system, etc.). This is such a field of activity, the transfer of which to market relations, due to a number of technical and economic properties of production, can lead to a decrease in the efficiency of its functioning.

In the transition to a market economy, it is necessary to fight against the mafia and corruption, against new forms of existence of the shadow economy, which is based on concealing income from taxation and falsifying a trademark.

It is possible to develop a market economy only under the condition of developed contacts with the world market, with other countries. Ways of development of foreign economic relations can be different: international trade; creation of joint ventures and free economic zones; attraction of foreign capital; development of foreign exchange relations. But all these processes are focused on problems that need to be addressed: these are the convertibility of the ruble and state guarantees, compliance with the norms of international economic law.

Since the market does not deal with the problems of ensuring the socio-economic rights of the population, the state during the transition to the market needs to create a system of social guarantees for the population. It should operate not only during the transition to the market, but also in a developed market economy.

Considering the problem of the formation and development of the market, one must constantly keep in mind that the market itself is a form of organization of production and its relations. It can be used for various social purposes. Depending on the choice of goals, the mechanism of a market economy and, consequently, the type of market may be different.

There are elements in the mechanism of the functioning of a market economy that make it possible to realize any social goals. The point is that the market is not yet a market economy. Under market economy the market is understood in unity with the economic functions of the state, with state regulation of the economy. The state can intervene in the processes of redistribution of income and in consumption. Its intervention in such processes is increasing in all countries, which is associated with the strengthening of the social orientation of national economies. This must be foreseen in advance in the economic mechanism of Russia being created in order to be able to realize the social goals of the country's development.

Personalized property, when the commodity producer is the owner of the means of production and freely disposes of the results of his labor

Freedom of production and commercial activities of all participants in social production

The ability of manufacturers and managers to integrate into market relations in an organized and psychologically correct way

Well-established system of credit and financial relations

Rice. 54 Conditions for the normal functioning of the market

Availability of independent commodity producers, freedom entrepreneurial activity and guarantees of property rights of various economic entities

Free market prices balancing supply and demand

Producer competition

Free flow of capital between industries and regions

Education financial market, which includes the market for credit resources, the securities market and the foreign exchange market

Availability of a labor market, hired labor force with a developed system of its training, retraining, intersectoral and interregional overflow

Openness of the economy to global integration processes, the possibility of migration of labor, goods and capital

Rice. 55 General laws of the formation of a market economy

7. Transition economy: essence, features, development trends. The role of the state in a transitional economy

Types of indirect state intervention in the economy

Rice. 56 Indirect government intervention in the economy

Microeconomics

1. Theory of supply and demand

Rice. 57 Individual demand curve

The individual demand curve is presented as a downward DD curve because there is an inverse relationship between price and quantity demanded.

Changes in demand

Rice. 58 Changes in demand

A change in one or more determinants of demand causes a change in demand. An increase in demand shifts the demand curve to the right, for example from D I to D 2 . A decrease in demand shifts the demand curve to the left, for example from D 1 to D 3 . A change in the magnitude of demand leads to a movement caused by a change in the price of this product, from one point to another on a constant demand curve, on our chart - from a to b.

Offer amount

Rice. 59 Individual offer curve

The direct relationship between the quantity supplied and the price of a product can be shown graphically: it is expressed in the upward direction of the supply curve.

On the graph, the individual supply curve is represented as an ascending SS curve, since there is a direct relationship between the quantity supplied and the price: according to the law of supply, producers produce more of a product if the price of it rises.

Changes to the offer

Rice. 60 Changes in offer

An increase in supply shifts the supply curve to the right, from S 1 to S 2 . A decrease in supply shifts the supply curve to the left, from S 1 to S 3 . Moving from a to b means a change in the size of the offer.

Changes in supply and demand

Rice. 61 Changes in supply and demand and their impact on the price and quantity of the product: a - an increase in demand; b - decrease in demand; c - increase in supply; d - decrease in supply

Factors influencing supply and demand

Price is the main factor influencing demand.

Price is the main factor influencing supply.

Resource prices

Change of technique and technology

Taxes and subsidies

Number of manufacturers

Price Change Expectations

Prices for related products

is. 62 Factors influencing supply and demand

Non-price supply factors

Resource prices

Improvement of engineering and technology

Taxation level

Prices for related products

Producers' expectation of price changes in the market

Rice. 63Non-price supply factors

Factors affecting demand

Market is a system of economic relations that develop in the process of production, circulation and distribution of goods. The market develops along with the development of commodity production, involving in the exchange not only manufactured products, but also products that are not the result of labor (land, wild forest).

The essence of the market. The market represents the sphere of exchange (circulation), in which communication is carried out between the agents of social production in the form of purchase and sale, i.e. connection of producers and consumers, production and consumption.

The subjects of the market are sellers and buyers. Households (composed of one or more persons), enterprises, and the state act as sellers and buyers. Most market participants act both as buyers and sellers. Subjects interact in the market, forming an interconnected "stream" of buying and selling.

The objects of the market are goods and money. Goods are manufactured products, factors of production (land, labor, capital), services. As money - all financial means.

The market as an independent entity includes three main elements: the market for goods and services, the labor market, and the capital market. All these three markets are organically interconnected and influence each other. The development of the market and market relations depends on the development of all its components.

Market Conditions: 1) social division of labor. Through the division of labor, an exchange of activities is achieved. As a result, a worker of a certain type of labor gets the opportunity to use the products of any other specific type of labor;

2) specialization. Specialization is a form of social division of labor both between different sectors and spheres of social production, and within an enterprise at various stages of the production process. In industry, there are three main forms of specialization:

- subject (automotive, tractor factories);

– detailed (ball bearing plant);

– technological (spinning mill);

3) the limited production capabilities of man. In society, not only the production possibilities of a person are limited, but also all other factors of production (land, equipment, raw materials). Their total number has limits, and application in any one area excludes the possibility of the same production use in another. In economic theory, this phenomenon is called the law of limited resources. Resource constraints are overcome by exchanging one product for another through the market;

4) economic isolation of commodity producers. Economic isolation means that only the manufacturer decides what products to produce, how to produce them, to whom and where to sell. The legal regime of the state of economic isolation is the regime of private property. The exchange of products of human labor primarily presupposes the existence of private property. With the development of private property, the market economy also developed. Objects of private property are diverse. They are created and multiplied through entrepreneurial activity, income from running one's own economy, income from funds invested in shares and securities.

Typology of markets: The pricing policy of the enterprise depends on the competitive structure of the market. Market structure is the characteristic features of the market, which include: the number and size of firms in the market, the degree of similarity or difference in the products of different firms, the ease of entry and exit of new sellers, the availability of market information.

There are various options for combining elements of the market structure, in other words, it is possible different models market.

Usually there are four types of market: market of perfect (pure) competition, market of monopolistic competition, market of oligopolistic competition, market of pure monopoly. Perfect competition and pure monopoly are "ideal" (abstract) models market structures which do not exist in real practice. Monopolistic competition and oligopoly are characteristic of most markets.

The market of pure competition is characterized by:

The presence of many firms, when none of them can have a significant impact on the level of current prices, since each owns a small market share;

Homogeneity and interchangeability of competing products;

The absence of price restrictions;

Complete freedom to “enter” the market and “leave” it.

Under conditions of pure competition, for a firm, demand is fully elastic with price. This is due to the presence of a huge number of firms in the market, and none of them controls a sufficiently significant market share. When the volume of production is expanded, the firm, as a rule, does not change the price. The relationship between demand is inversely proportional, that is, a price decrease contributes to an increase in demand. If the supply of goods in the industry increases, then the price will decrease, and for all firms, regardless of their volume of production.

Thus, in a market of pure competition, no firm in the market plays a significant role in pricing, and prices are formed under the influence of supply and demand.

There are a lot of markets for pure competition, and this should include, in addition to agriculture, the international market for wheat, timber, and non-ferrous metal ores.

Table 1 - Characteristic features of the main market models

The concept of "market".

The market is one of the most common categories in economic theory and business practice. This category has many different interpretations both here and abroad. This concept includes the contract of sale; and the totality of business operations carried out in a particular area of the economy or in a particular place, and the state and development of supply and demand in a particular area of \u200b\u200bthe economy (for example, they speak of a decrease in prices in the metal market or a shortage in the labor market), and the junction of supply and demand for goods , services and capital. All these (as well as others) definitions of the market have the right to exist, as they characterize certain aspects of this complex economic phenomenon. The presence of a large number of definitions and interpretations of the content of the category "market" is associated with the development of social production and circulation.

Initially, the market was considered as a bazaar, a place of retail trade, a market square. This is explained by the fact that the market appeared during the period of decomposition of primitive society, when the exchange between communities becomes more or less regular, it only acquired the form of commodity exchange, which was carried out in a certain place and at a certain time. With the development of crafts and cities, trade and market relations are expanding, certain places and market areas are assigned to markets. With the deepening of the social division of labor and the development of commodity production, the concept of "market" acquires a more complex interpretation, which is reflected in world economic literature. So, the French mathematician O. Cournot (1801-1877) and the economist A. Marshall (1842-1924) believe that “the market is not any specific market area where objects are sold and bought, but in general any an area where buyers and sellers deal with each other so freely that the prices of the same goods tend to equalize easily and quickly. ” This definition preserves the spatial characteristics of the market, and freedom of exchange and price fixing acts as the main criterion.

Conditions for the normal functioning of the market.

For the normal functioning of the market, the following conditions are necessary:

3) competition. Competition is the soul of the market. There is competition, which means there is a market. The condition for competition is the presence of at least several sellers (producers), as well as several buyers;

5) sustainable monetary and financial systems. The stability of the monetary system presupposes the absence of inflation (or its minimum level), and the stable financial system presupposes, above all, the stability of taxes;

6) the presence of a developed market infrastructure;

8) openness of the national market, its connection with the world market;

9) stability of the political situation;

10) the ability of all participants to adapt to the requirements of the market, to comply with the "rules of the game".

The content of the concept of marketing is determined by the tasks facing it. Since its inception to the present day, it has changed depending on changes in the conditions of production and sale of products. Currently, marketing is a system for organizing all the activities of a company in the development, production and marketing of goods based on a comprehensive study of the market and real customer requests in order to obtain high profits. In other words modern system marketing makes the production of goods dependent on the needs of consumers.

Marketing is used not only by manufacturing enterprises, but also by trade organizations, service organizations, and individuals. Therefore, marketing is not some kind of universal, unified concept, on the contrary, the directions and methods of its implementation require adaptation to the type of organization, conditions and possibilities of its application.

For a correct understanding and application of marketing theory in practice, it is necessary deep study marketing functions.

FUNCTIONS OF MARKETING - individual types or complexes of types of specialized activities carried out in the process of organizing and implementing marketing. The most important marketing functions include: marketing research and information gathering; marketing planning; organization of marketing; new product development; product promotion; marketing and distribution of the product.

1. Analytic function.

To survive in the competitive struggle, it is necessary to constantly provide decision makers with the most reliable information. Today, information is no less important resource of an enterprise than money, raw materials, equipment and personnel.

Entering the market, the manufacturer must be aware that his product cannot satisfy the needs of all buyers. At the same time, it is necessary to strive for the production of a product that would best satisfy the needs and requirements of existing and potential buyers. This will be possible only if it is established that the goods produced or put into production correspond to the needs and tastes of buyers, that the goods differ in properties and quality from the goods of competitors. It is important to identify the advantages and disadvantages of the product; determine the attitude of certain groups of consumers towards it; identify possible trends in the market requirements for the product in the future; establish areas of its use in the future. All this is achieved as a result of market research.

· Market research, as such.

Market research is a set of measures to study the processes in the sphere of commodity circulation, aimed at balancing the supply and demand of goods and services.

· Needs research.

· Research of firm structure.

In a market economy, firms operate in a competitive environment. As marketers note, when studying consumers, one should not forget about competitors. It is necessary to carefully study and analyze the competitive environment in which the company operates.

· Product research.

Research of goods - determination of the compliance of technical and economic indicators and the quality of goods circulating in the markets with the requests and requirements of buyers, as well as an analysis of their competitiveness.

· Analysis of the internal environment of the enterprise.

Orientation in marketing to the target consumer should be combined with the characteristics of the internal environment of the company and, in particular, with its resource limitations.

2. Production function.

The production and marketing function of marketing involves the implementation of the directions laid down in the plans:

Commodity policy (production of a certain range of products, development of new products, pre-sales service of goods, equipment renewal, etc.);

Pricing policy (determination of the price level per unit of goods and price dynamics depending on the phases life cycle goods, establishing the ratio of the company's prices with the prices of competitors in each market segment, etc.);

Sales policy (creation of distribution channels, determination of the moment of entering the market, provision of a product distribution system, etc.);

Communication policy (implementation of measures to promote goods on the market: conducting advertising campaigns, providing intermediaries and consumers with relevant benefits and discounts, stimulating their own employees involved in the sale of products, participating in exhibitions and fairs, etc.);

Personnel policy (recruitment, training and retraining of personnel, implementation of measures to motivate employees, etc.).

· Organization of production of new goods, development of new technologies.

With rapidly changing tastes, technology, and competition, a firm cannot rely solely on existing products. The consumer wants and waits for new and improved products. And competitors will make every effort to provide it with these new products. Therefore, each firm should have its own product development program.

· Organization of logistics.

· Managing the economy and competitiveness of finished products.

In modern conditions, there is a need to change the orientation and criteria for evaluating developed and manufactured products.

The competitiveness of a product is understood as a combination of its quality and cost characteristics, which ensures the satisfaction of the specific needs of the buyer and favorably distinguishes the buyer from similar products - competitors.

3. Sales (or sales function).

· Organization of the distribution system.

The distribution system is the provision of delivery of goods to the place where they are needed, at the time when they are needed, in such quantities as they will be in demand and of a quality that will completely satisfy the consumer.

Service organization.

Service is considered as a customer service system. The purpose of the service is to offer customers the available product and help them get the most out of the product they have purchased.

· Organization of demand formation system and sales promotion.

· Carrying out a targeted pricing policy.

Before all commercial and many non-profit organizations The challenge is to set prices for your goods or services. Price appears in many different industries. For example, we pay rent for housing, and tuition fees at the institute. airlines, railways, taxis and buses charge you a fare. With some degree of conventionality, the price of a managerial employee can be called his salary; the price of the seller - the commission received by him; the price of the worker is his wages.

· Carrying out a purposeful commodity policy.

The product occupies a central place in the marketing mix. It is he who must satisfy the real needs and needs of a person, and marketing is designed to help each manufacturer identify and ensure their satisfaction better than competitors do.

4. Functions of management and control (managerial function).

· Organization of strategic and operational planning at the enterprise.

Planning is one of the most intensively researched problem areas in the theory of production economics. It occupies an important place in practical activities enterprises.

· Information Support marketing.

· Communicative subfunction of marketing.

· Formation of marketing control.

Control concludes the marketing management cycle and at the same time gives rise to a new marketing planning cycle.