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Key Difference Between Marketspace and Marketplace.

Key Difference Between Marketspace and Marketplace.

In the present information age, the model of value creation is one of the important criteria, and this value creation becomes the basic aspect of the difference between marketspace and marketplace. For a buyer and a seller to have an exchange or transaction, information availability and access to information are important. Information can be separated from the actual product or the service offered due to technological advancements, and it becomes as critical as the product or service itself. Further, the place of value creation depends on this aspect. The place of the transaction and the place of the exchange can differ due to this aspect. These altogether make the difference between a market space and a marketplace. The key elements of the difference between marketspace and marketplace are the physical presence and the value creation modes. Let’s elaborate on these differences further by first understanding the meaning of these two terms.
What is Marketplace?
The marketplace is a physical location of buyer and seller interaction. The seller and buyer meet each other individually at the marketplace and share information. Thereafter, negotiations take place and exchange of product or service occurs, examples of the marketplace are retail stores, outlets, supermarkets, etc. A marketplace would have a physical address and the buyers may routinely visit a marketplace to have a look around at what’s in store. Also, at a given single marketplace, the number of buyers and sellers are limited due to demographics factors, which relate to physical presence. So, the demand and supply factors are decided by a fewer number of people.
In a marketplace, brand equity is created by manipulating the content, context, and infrastructure, using the traditional marketing mix. These three elements are usually interconnected and inseparable if the buyer is to access the product or service. Customer perceived value is a combination of product or service, pricing, communication, and supply chain activity related to the product or service. For example, furniture is an aggregated collection of content (raw material, product design), context (organization, logo, style), and infrastructure (production plant, physical distribution system). To create value for customers, producers should aggregate all three into a single value proposition.
What is Marketspace?
The traditional marketplace transaction is eliminated at the marketspace. Marketspace can be defined as the information and communication technology-based electronic or online exchange environment. The buyers and sellers interact and transact in a virtual environment where direct physical communication is not required. The sellers may exhibit their products on their websites or dedicated sales engines such as delon.ng while buyers can perform a targeted search query to find their relevant requirements. For an online selling platform, the numbers of buyers and sellers are not decided by demographic factors as no physical boundaries exist. The world itself can sell and buy through a single platform. So, the demand and supply are decided by a large number of people.
In a marketspace environment, value creation and value proposition are revolutionized. In the market space, the content, context, and infrastructure can be disaggregated to create new ways of value additions, lowering costs, buildings relationships, and rethinking ownership. These three elements of content, context, and infrastructure can be easily separated in a marketspace. For example, the same furniture sold via Delonmarket has different content as a large number of sellers will be exhibiting their products (variety) while, context would be that of Delonmarket itself such as prominent sellers listed prominently or allows customizations. The infrastructure is not fully company-owned; it belongs to customers such as PC, modem, and telephone also, delon.ng infrastructure facilitates the transaction. Here, though the transaction occurs at Delonmarket, the delivery is the responsibility of the seller. Therefore, the value dynamics are varied and can be managed in different ways.
What is the difference between Marketspace and Marketplace?
As we have now understood the two elements individually, we will compare the two to find the differences between them based on a variety of factors.
Definition of Marketspace and Marketplace:
A marketplace is a physical location where the buyer and seller meet each other individually and share information. While marketspace is an information and communication technology-based electronic or online exchange environment where the buyers and sellers interact and transact in a virtual environment.
Characteristics of a Marketspace and a Marketplace:
Physical Presence
The marketplace has a physical location, physical buyers, and physical sellers, and direct negotiations are done for a transaction to occur. A physical location nor physical buyers or sellers is not required at the marketspace. All are electronic-based on information and technology infrastructure.
Cost / Investment
In the marketplace, due to the infrastructure and possibility of a fewer number of customers the cost can be marginally higher. Spending on buildings, maintenance, and staff would incur overheads into the product pricing. In the market space, the cost can be lowered by ingenious ways of thinking by reducing the overheads, shared ownership (infrastructure owned by different parties of the transaction), online money transfer, and so on.
Supply & Demand
In the marketplace, the supply and demand are decided by a fewer number of people because of its limitation to a locality of a city or a country. Even if the seller identifies a supply inadequacy, the response or the price he can collect will be limited due to the fewer number of buyers. In the market space, the supply and demand are decided by a more number of buyers, and sometimes, on a global scale. So, if the seller senses supply inadequacy, an online auction would be the preferred choice to capture the highest possible rate.
Value Creation
The content, context, and infrastructure are aggregated and inseparable to have a transaction at the marketplace. Brand equity and value proposition is based on the total of these factors. At the market space, the content, context, and infrastructure can be separated and can become the basis for perceived customer value.
In this article, we have attempted to understand the terms marketplace and marketspace followed by a comparison to find the key elements differentiating them. The basic difference is the physical elements and value creation modes.

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