Note on Reactive and proactive Marketing, Marketing environment in nepal

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Companies implement various marketing strategies whether they add to their product line or add distribution channel. When marketing managers establish any marketing strategies on their own willingness then they are using proactive marketing. However, if some dynamic change occurs in the market like a change in price or introduction to new technology then marketing managers may need to use reactive marketing to reduce the negative effects on their sales and profits.

Reactive Marketing

Reactive marketing is the most widely used strategies in marketing. Reactive Marketing is based on the concept of reacting.For example, if a company is following certain marketing strategies with good result output then we do the same by changing the design slightly or price and adopting the marketing policies. If the firm has no choice in order to survive in the markets they follow this strategy also make profits from it. Reactive marketing is undertaken when there is the presence of stiff competition from the competitor.

Proactive Marketing

A proactive marketing campaign develops not as the response towards the competitor's action but as an original creation.A company that is implementing proactive marketing don’t use the same techniques of advertising as another firm but it markets its product in the entirely new medium. It is basically an innovative form or idea that is based on new ideas in terms of creativity of both content and marketing strategies.

It definitely engages a lot of more work but the end result might be much better than other forms of marketing. Doing something new in a different way in the marketplace in order to attract the attention of the consumer is the core aspect of proactive marketing.


Marketing Environment In Nepal

The actors and forces which are outside the marketing that affects marketing management ability to maintain a successful customer relationship with target customers is Marketing Environment. The company constantly adapt to the changing environment. The various factors like economic, political-legal, technological, socio-cultural affect the marketing environment in Nepal. These elements affect the marketing activities directly and indirectly.

The environmental and sub-elements of marketing are described below.


Marketing environment in Neoal
Marketing environment in Nepal




























Source :2013/11/marketing-environment-in-nepal-and-its.html


Political-Legal Environment

Nepalese political-legal environment changes with the change in time. The change in political situation obviously will affect the marketing strategies and policy. The changed political environment is described below.

Political Parties

Politics of a nation directly affects marketing. Multiparty democratic system is practicing in Nepal after the people's movement 2046 B.S. Economic thought of the political parties that exist in our country definitely affects the country’s economy.

CPN (UML) , Nepali Congress, UCPN (Maoist) , Rastriya Prajatantra party etc are the major political parties of Nepal. 

Administrative Policy

The another important element of a political-legal environment is administrative policy. Marketing managers must be well informed about the administrative policy as it affects the marketing environment. Nepal government has adopted the policy that strengthens the administrative organizations and brings coordination among the different organizations.

Legal Provision

Legal provision directly affects marketing. Positive provision affects positively whereas negative provision affects negatively. Import and Export Act, Nepal Agency Act, Company act, Patent act, Design, and Trademark Act etc are the major legal provision that affects the marketing environment.


Constitution is the major elements of marketing environment.  Every marketing strategies and policy should be made under the constitution else it will be considered as illegal.

Economic Environment

The Economic environment is essential for every business sector to sustain their business in the long run. If the economic environment is favorable then the business firm can get various opportunities and if adverse then it has to face many challenges.

Economic Condition

About 70 % of the people are engaged in agriculture and about 30 % of the people are compelled to live below poverty line. Nepalese economy is not fully self-reliant and long part of the nation's budget depend on foreign assistance.This affects the marketing environment in Nepal.

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

Social Cultural environment includes various factors like population, pressure groups, reference groups, social classes , life style, attitude belief religion etc.

Population : Population also determines the marketing environment as the number of people of certain place will give a rough idea about the production to the marketers.

Pressure Group: They do different activities for the interest of themselves and society. The business organization will get affected by their activities. Pressure group includes consumers association, civil society, human right organization, woman organization, child right forum etc.

Reference Group: Change in consumers behavior is brought by reference groups. Political leaders, scientists, heroes, heroines, musicians, singers etc are considered as peer groups.

Social Class: Nepalese Society can be classified into various groups like high class, middle class, and lower class. Their marketing expenses will be determined by their class.

Life Style: Social change is the major components that bring change in the lifestyle of the people. Their lifestyle is expressed through their activities, behavior, speaking etc.

Attitude: Attitude of the people towards time, occupation and change are essential in the social and cultural environment. People's attitudes in business organizations are affected by education, language, belief etc.

Beliefs: People's belief is affected by education, religion, traditions etc. Nepalese people normally believes in fate so they think the success and failure do not depend on upon human efforts but in the will of god.

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

Technological Environment:

Technological development brings positive change in the industrial development. Technological development in Nepal is explained below.

Level of Technology : The level of technology includes labor oriented and capital oriented. Technological manpower is used in labor oriented whereas advanced machineries are used in capital oriented.


Pace of technology: Technology is dynamic and its changing pace is very fast. So manager should be able to adopt the changing technology.

Research and Development: Research and development is another important tools in the technological environment which require various resources to do any work.


Technology Transfer: Nepal is backward in technology so it adapts the policy of transfer of new technology. Technology Transfer means directly importing new technology or opening branch of the multinational company. Examples of new technology transfers are Wai wai Noodles, Nepal Bottlers, Tuborg, Sanmiguel beer etc.

Thus, these factors in Nepal should be considered by every organization in order to achieve their goals and objectives more effectively and efficiently.




  • Reactive and Proactive Marketing
  • Factors affecting marketing environment in Nepal



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