Are Monopoly Industries Unaffected by Marketing?
Businesses in a monopoly market pay less attention to the contribution marketing can make to create and meet the needs of the market.
Because the product is in a monopoly market, it's harder to justify the marketing component in the product sale price as are looking into the market size and supply-demand situations.
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Rumbiey Muchenje
Entrepreneur, China
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Monopoly Industries are Relatively Unaffected by Marketing
An obvious effect of a monopoly situation (such as in many development countries) is that the marketing and advertising industry slowly become unappreciated. This may affect the investment rates in countries, when an investor wants to pour in resources into a country like that he obviously wants to look at the marketing and advertising area, which in most monopolistic industries not exist.
Another effect is that any multi-national wishing to do business in the country would rather get foreign advertising agencies to work with them, limiting the scope of work for local agencies.
Another effect of industries that are monopolized is that because there is little or no need to market and advertise, the advertising agencies are very limited to fully do what they do best, brand management and development.
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