Complete 6 page APA formatted essay: How important are marketing promotion strategies in the success of a monopoly.Monopoly can be created as a result of social or political inclination whereby consum
Complete 6 page APA formatted essay: How important are marketing promotion strategies in the success of a monopoly.
Monopoly can be created as a result of social or political inclination whereby consumers are influenced to prefer a particular producer or seller. This is evident where nationalism dictates what is produced and sold in the market. For instant, there are certain market economies that advocates for protectionism where consumers in that market are influenced to buy products from a particular producer or seller. This strategy often restricts other producers or sellers with intention to invest in the same market structure. In a monopoly market structure, the government often plays a greater role in selecting the producer or seller to dominate a particular market for products and services. For instance, the government often maintains monopoly in selecting firms the favor in a particular sector. In most markets, the sectors that monopoly structure is dominant include the telecommunication sector or the pharmaceutical sector (Amadeo, 2014). This paper explores how marketing promotion strategies are important in the success of a monopoly.
Maintaining monopoly over a product means that the producer or seller has to stay ahead of other firms in terms of coming up with strategies main to retain their customer base. This is because the demands from customers or consumers are dynamic and maintain a static strategy may result to a backlash from consumers who can decide to look for other sellers or producers willing to meet their demand or reject products from a monopoly producer or seller (Freire, 2009). The drawback with a monopolistic structure is that a product or service often becomes monotonous in the market and customers may lose interest in their products if the monopolistic producer or seller is not creative enough to keep consumers enthusiastic about their products or services. As a result of globalisation and a pressure to liberalize the global market, maintaining a monopolistic market structure is becoming more difficult as similar products are