WHAT IS MONEY IN THE MARKET SPACE?
Hello, this article is a product of critical thinking and personal insight. I might be wrong, but who cares — this is my world remember.
How do we define money? According to Wikipedia, money is a form of legal tender that courts of law are required to recognize as satisfactory payment for any debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered (“tendered”) in payment of a debt extinguishes the debt.
In the olden days, marketing only happens when you exchange your product for another product, in order words you exchange value for value. This was termed trade by barter.
However, this method of exchange made marketing inefficient as transferability and divisibility became stressful. For instance, if someone has lamps but needs headphones, they must find someone who not only has headphones but also desires lamps. What if that individual finds someone who needs lamps with no headphones and can only offer wristwatches? To get headphones, that person must find someone who has headphones and wants lamps.
Money as a medium of exchange makes marketing easier and smooth, but people generally assume that currency is the reward you get for creating value.
So the question should be, is money a medium of exchange or value that can be exchanged for another value? I believe that it is the latter. Going by the history of how money got introduced into marketing, marketers of old exchanged value for value. Sellers are not the only people creating value in the market, but buyers are also creating value which is currency -their purchasing power.
