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May 29, 2010

Public policy on Marketing (Part 2)

8. Regulation of sale of certain products: The government also a responsibility in regulation of sale certain products like kerosene, diesel, petrol, water and electricity. The role of the government was brought into sharp notice in the recent sharp increase of an essential commodity like sugar.

9. Price fixing (administered price): The government also has to controls the price of certain commodities like kerosene, diesel, petrol, water and electricity. The administered price is imperative; otherwise greedy retailers might hoard the products and try to black market these commodities.

10. Fair price: The government also has a role is seeing that there is a fair price that is charged for the products. It is all right to say that let the market dictate the price. But is the market mature enough to dictate the price?

11. Cartel formation: It has been noticed that a group of sellers come together and set an artificial price and don't let the price come down. This type of cartel formation is very dangerous and should be broken at any cost. Cartel formations are harmful to all concerned except the cartel itself.

12. MRP: It has been noticed that in many countries that the same product is sold to different people at different prices. This happens because there is no price tag on the product package. This leads to frequent over charging. The best way out is to have a MRP (maximum Retail Price). The printing of the MRP would see that the same price is charged by all sellers.

13. Adherence to standards: The government has the responsibility to see that all the companies are adhering to the set standards. The quality control division should conduct frequent checks to see that the standards are not being diluted. The most abused standard is the wrong weights that are used in weighing the merchandise.

14. Encourage recycling: One of the thrust area that the government needs to focus is recycling. Most products that we use are environment unfriendly like plastic. Government should seriously consider laws that encourage recycling.

15. Encourage local products: It is also noticed that globalization is resulting of lots of cheap products for the customer. But globalization is sweeping away the local products. This should be avoided at all costs. The best way is to encourage the producers of the local products and provide a LEVEL PLAYING GROUND.

16. Encourage competition: The best way to make the companies more competitive is to allow competition. Once the competition enters the companies will cut the flab and will offer better products at a more economic price.

17. Discourage wasteful products: It has also been noticed that there are lots of companies that encourage the customers to buy wasteful products. The government should watch these trends and should cut such practices in the bud stage itself. For example most of the products that are advertised in the "Sky shopping channels of various television channels" can be considered as wasteful.

18. Protect own markets: Globalization does not mean that we will allow every body with open arms. Every country has the right to protect its own markets, companies and customers from exploitation. The government needs to draw up a comprehensive policy to address this issue.

19. Encourage local products or services: The government needs to encourage companies that are labor intensive and that generate employment for large number of people.

20. Discourage blind aping: The government through the media should subtly say how we are better off using our own indigenous products rather than blindly trying to ape the customers of some other countries.

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