Dictionary of Procurement Terms

Welcome to the NIGP Online Dictionary of Procurement Terms, the comprehensive reference for public purchasing terms and concepts.

Search the Dictionary of Terms

Search Results: 21-30 of 118 results for “M”

  • Market

    1. A group of individuals who have a collective need, purchasing power, and the desire and authority to spend money on goods, services, and ideas. 2. A setting where ​buyers and sellers establish prices for identical or very similar products, and exchange goods and/or services. 3. The aggregate forces (including economics) at work in trade and commerce in a specific service or commodity.

  • Market Analysis

    The process of analyzing prices and trends in the competitive marketplace to compare product availability and offered prices with market alternatives and establish the reasonableness of offered prices. (Business, 2002)

    See Also: Demand Analysis, Procurement Profile, Spend Analysis, Supplier Analysis, Supply Positioning

  • Market Demand

    The total quantities of a good or service people are willing and able to buy at alternative prices in a given time period; the sum of individual demands. (Schiller, 2000)

  • Market Economy

    An economy that relies on markets for basic decisions about what to produce, how to produce it, and for whom to produce. Contrast to socialism or communism where political decisions determine market direction. (Schiller, 2000)

  • Market Grades

    Used when procuring commodities that are traded regularly on the commodity exchange such as lumber, steel, food products, and fuel. Grading determines the quality level of the commodities. Trade associations, commodity exchanges, and government agencies are sources of market grade information.

  • Market Research

    Collecting and analyzing information about capabilities within the market to satisfy agency needs. The results of market research are used to arrive at the most suitable approach to acquiring, distributing, and supporting goods and services.

  • Market Segmentation

    A strategy whereby a business divides the total market into groups of people who have relatively similar product needs. (Ferrell & Hirt, 2002)

  • Market Share

    1. The percentage of total market output produced by a single firm. 2. The ability of a business entity to capture a large segment of a particular market. 3. A company’s percentage of the total market in which it is a dominant player. (Ferrell & Hirt, 2002)

  • Market Supply

    The total quantities of a good that sellers are willing and able to sell at alternative prices in a given time period. (Schiller, 2000)

  • Market Survey

    An attempt to determine whether there are qualified sources capable of satisfying the specific requirements for supplies, services, or construction. May range from written or telephone contacts with knowledgeable experts regarding similar requirements, to consultation of technical or scientific journals, to ​solicitations for information or planning purposes only.