Reactive and Proactive Marketing, Marketing Environment in Nepal

Companies use a variety of marketing techniques depending on whether they are expanding their product line or their distribution network. Proactive marketing is when marketing managers create any marketing tactics out of their own free choice. However, marketing managers can need to use reactive marketing if a market dynamic changes, such as a price shift or the introduction of new technology, in order to lessen the negative effects on their sales and earnings.

Reactive Marketing

The most popular marketing tactics are reactive techniques. The idea of reacting is the foundation of reactive marketing. For instance, if a company is implementing specific marketing methods with positive results, we will follow suit by making minor changes to the design or price and implementing the marketing strategies. If there is no other option for the company to make a living in the markets, they use this technique and benefit from it. When there is fierce competition from the rival, reactive marketing is implemented.

Proactive Marketing

A proactive marketing campaign emerges as an original idea rather than as a reaction to the competitor's behavior. A corporation using proactive marketing does not employ the same advertising strategies as another company; instead, it offers its goods through a completely different channel. It is essentially a novel form or concept that is built on fresh concepts for both content and marketing tactics.

It takes a lot more work, but the payoff could be far superior to that of other marketing strategies. The fundamental principle of proactive marketing is doing something fresh in a different way in the marketplace in order to get the attention of the consumer.

Marketing Environment In Nepal

Marketing Environment refers to the external actors and influences that have an impact on marketing management's capacity to uphold a successful customer relationship with target customers. The business adjusts continuously to the environment's changing needs. The marketing environment in Nepal is impacted by a number of elements, including economic, political-legal, technological, and socio-cultural. Both directly and indirectly, these factors have an impact on marketing operations.

Following is a description of the marketing environment and its components:

Political-Legal Environment: The political and legal landscape of Nepal evolves with time. The political environment will undoubtedly alter, which will impact marketing strategy and legislation. The altered political landscape is discussed below:

• Political Parties: Marketing is directly impacted by a country's politics. In Nepal, a multiparty democratic system has been in place since the 2046 B.S. people's movement. The political ideologies of the various political parties in our nation unquestionably have an impact on the economy of the nation. The main political parties in Nepal are CPN (UML), Nepali Congress, UCPN (Maoist), Rastriya Prajatantra Party, etc.
• Administrative Policy: Administrative policy is yet another crucial component of a political-legal context. The administrative policy must be fully understood by marketing managers because it has an impact on the marketing environment. The Nepali government has established a strategy to improve administrative institutions and promote collaboration amongst various institutions.
• Legal Provision: Marketing is directly impacted by legal provisions. Positive provision has a positive impact, while negative provision has a negative impact. The main legal provisions that influence the marketing environment include the Import and Export Act, Nepal Agency Act, Company Act, Patent Act, Design Act, and Trademark Act, among others.
• Constitution: The foundation of the marketing environment is the constitution. Every marketing strategy and policy must be created in accordance with the constitution to avoid being deemed unlawful.

Economic Environment: Every industry's business sector needs a stable economic climate to grow over time. The business enterprise can benefit from a variety of chances if the economic climate is good, but it must also contend with several difficulties if it is unfavorable.

• Economic Condition: Roughly 30% of the population is forced to live below the poverty line, while about 70% of the population is employed in agriculture. The Nepalese economy is not entirely self-sufficient, and a sizeable portion of the country's budget is dependent on foreign aid. The marketing environment in Nepal is impacted by this. Various policies related to the economic environment also affects the marketing plans and decisions like trade and transit policy, Industrialization policy, privatization policy.

Social and Cultural Environment: The social and cultural context involves a variety of elements, such as the population, pressure groups, reference groups, social classes, way of life, attitude, and religious beliefs, among others.

• Population: Population also affects the marketing environment since it provides marketers with a general picture of the level of production in a certain area.
• Pressure Group: For the benefit of society and themselves, they engage in a variety of activities. Their actions will have an impact on the company organization. Consumer associations, civil society, human rights organizations, women's organizations, child rights forums, etc. are examples of pressure groups.
• Reference Group: Reference groups influence consumer behavior by bringing about changes. Peer groups include politicians, scientists, athletes, musicians, singers, and others.
• Social Class: The Nepalese society can be divided into high class, middle class, and lower class categories. Their class will decide how much they spend on marketing.
• Life Style: The main factor influencing how people's lifestyles change is social change. Their actions, conduct, speech, etc., all reflect their way of life.
• Attitude: In the social and cultural milieu, how people view time, work, and change is crucial. Education, language, belief, and other factors all affect people's attitudes in business organizations.
• Beliefs: Education, religion, traditions, and other factors all have an impact on people's beliefs. The majority of Nepalese people believe in fate, therefore they believe that God's will, rather than human effort, determines whether something will succeed or fail.

Other factors are education, language, and religion that plays significant role in socio-cultural environment in marketing

Technological Environment: Positive changes are brought about in industrial development by technological advancement. Below is an explanation of Nepal's technological growth.

• Level of Technology: Both capital- and labor-oriented technologies are included in the technological level. Labor-oriented industries use technological manpower, whereas capital-oriented industries use cutting-edge machinery.
• Pace of technology: Technology is dynamic, and it changes quickly. Managers should therefore be able to adapt to new technology.
• Research and Development: Another key tool in the technical environment is research and development, which needs a variety of resources to function.
• Technology Transfer: Due to its technological backwardness, Nepal has adopted a policy of technology transfer. Directly importing new technology is referred to as technology transfer, as is establishing a branch of a global corporation. Wai Wai Noodles, Nepal Bottlers, Tuborg, San Miguel beer, and other products are examples of innovative technology transfers. Thus, these factors in Nepal should be considered by every organization in order to achieve their goals and objectives more effectively and efficiently.

Reference

http://analysisproject.blogspot.com/2013/11/marketing-environment-in-nepal-and-its.html