Is a market defined solely by actual buyers who have transacted with a seller?

A market is not defined solely by actual buyers who have transacted with a seller. A market encompasses a broader concept that includes not just current participants in transactions but also potential buyers who are interested in purchasing a product or service, regardless of whether they have made a purchase in the past. This means that the market consists of all individuals or entities that have the ability and willingness to buy, which includes potential customers even if they have not yet completed a transaction.

Understanding a market in this way allows businesses to identify potential growth opportunities and tailor marketing strategies to attract new customers. For instance, companies often develop campaigns targeting segments of the market that have expressed interest or have the capacity to buy, even if those individuals have not yet made a purchase.

The other options fail to capture the full scope of what constitutes a market. Limiting the definition to only those who have done business ignores the potential market size and the dynamics that can influence purchasing decisions, making it essential for businesses to consider the broader context.