ABSTRACT
A market transaction takes place when there has been a successful matching of buyer and seller. The power of either party to influence a transaction's outcome is often described in terms of competitive strength. Classical economic models move in a series of steps from perfect competition to pure monopoly. Non-price factors are most often used to gain competitive advantage, although price should be, and is part of, the effective range of marketing decisions. Wroe Alderson has developed a theory of perfectly heterogeneous markets which he claims is more closely related to reality. The nature of that environment is suggested by the concept of the heterogeneous market. The quest for differential advantage is engaged upon to provide the firm with a degree of monopoly power. For an economy to be dynamic, it must meet the needs of consumers. The macro-process is necessary to understand both aspects of exchange and their relationship to marketing decisions.
