Marketing is ruling the roost today in the world. Being a student of both marketing and economics, i am always a confused person. We always believe that wealth creation is also a fundamental principal of economics. We are also aware that the ideal situation for abusiness to prosper is perfect competition. As the market turns toward monopoly efficiency decreases , volumes decrease, profits increase in the short run, but in the long run they also decrease.
Marketing is not only process of fulfilling customer needs and wants, but also initiate a process where product becomes a brand.We can take many examples. Coffee is known as nescafe, and TaTA TEA is synonym for Tea, Nike is for shoes and microsoft windows as computer plateform. we can count hundreds of products which are known from their brand names.
What it leads to . from perfect competition to monopolistic competition to oligopoly and towards monopoly. when you are operating in monoply, cost of products go up. margins at every stage are increased. then aproduct is sold at more than 100 % of its manufacturing cost.
it NOT only leads to escalation in price for the consumer but also leads to unequal distribution of wealth , which results in lot of constraints and strains in society.
Is there is aneed of regulator to fix the margin of business players, taking in view that their risk taking abilty is not copromised but consumers is not forced to pay extra burden for the purchase of his needs