Pure monopoly: this is a market in which there is only one firm providing a certain product in a
certain country or area. The monopoly may be created through government regulation such as
licensing or market related factors such as economies of scale, cartels or pricing strategies that
make it difficult for new entrants to come into the market. Some monopolies are formed and
regulated by the government for provision of essential services required by the citizens. The
Kenya Power and Lighting Company is one such a monopoly in Kenya. Other monopolies exist
by virtue of being able to prevent other players from coming into the market, for example by
being fully in control of the only source of an essential raw material required in the industry,
such that no firm can produce a particular product unless it gets the raw material form the
monopoly. Unless checked, monopolies can exploit customers either through charging
exorbitant prices or providing low quality products.
Pure Oligopoly: this exists in situations in which there are a few firms producing essentially the
same commodity. This would make it difficult for a particular firm to charge a higher price than
the competitors unless it can significantly differentiate its product or service provision.
Differentiated Oligopoly: a differentiated oligopoly is a situation in which a few companies
offer partially differentiated products, either in terms of specific attributes of the product itself or
by offering unique services. Each competitor seeks to attain market leadership along these major
attributes, and may even charge a premium price for the attribute.
Monopolistic composition: this consists of many competitors who focus on specific market
segments where they have a competitive edge over their rivals. Each competitor tires to carve a
niche for itself and charge a premium price within its niche.
Pure competition: a pure competition exists in a situation where there are many competitors
offering undifferentiated product and service. The price tends to be the same for all competitors,
and competitors do not need to advertise unless they merely want to create a psychological
feeling of uniqueness among the competitors. In a pure competition, consumers have access to
information about availability of the product and its price, hence a competitor who raises his
price to charge a premium price may not attract any consumers, and similarly, lowering prices
would quickly be marched by the other competitors as they can easily get the information before
Trends in Industrial Marketing
The current trends in industrial marketing include the following:
1. Emphasis on technical training and product considerations rather than on the market
itself. However, the whole focus is on customer satisfaction and so manufacturers are
increasingly getting concerned about the quality of their products. With increasing
technological complexity, firms have to spent money in training employees to be up to
date with technology.
2. A continuous attempt by manufacturers to manipulate the derived demand so that they
can have access to the end user. The derived demand is characterized by the presence of
indirect consumers who tend to shield the final consumers from the manufacturers thus
try to stimulate demand by undertaking promotion programs that target the final
consumer, for example, a steel manufacturer may try to promote the use of steel products
such as steel gates, by showing that properly secured homes are safer.
3. There have been major shifts in such areas as patterns of the final demand, rapid phase of
technological change, increasing size and complexity of manufacturing firms and the
growing impact of the computer and the management sciences, these development have
resulted in increased marketing involvement in R & D acquisitions, increased use of
formal marketing planning, emphasize on system in all aspect of marketing, more
effective coordination, direction and control and new directions in marketing research.
There has been increased need for R & D and acquisition for growth and diversification.
There is evidence that industrial firms are generating many new productions in order to
respond to the changing consumer needs. Similarly industrial organizations are
increasing getting bigger and more complex making it necessary to have better planning
strategy. This planning is made more effective by the presence of more information,
improved forecast methods and advances in decision theory and simulation techniques.
The systems approach to industrial marketing is necessary in order to consider all the
processes of industrial marketing as a system, so that all the parts contribute to the
system. The production, shipment and indeed all the marketing mix variables work
together in a systems approach. In this regard, proper coordination, direction and control
is crucial in the area of industrial marketing research, the following trends are underway.
A growing trend to think of marketing research in terms of marketing information
The analytical techniques employed in industrial marketing research are
becoming progressively more complex and computer based for example use of
specific program like SPSS
There is evidence of greater use of consumer research among industrial firms,
especially where the consumer is an important influential indirect customer.