Marketing Environment in Nepal
|Environmental elements of marketing in Nepal|
a) Political-legal environment
- The state shall pursue a policy of raising the living standard of genera public through the development of infrastructures such as education, health, housing and employment for all the regions by equitably distributing investment of economic resources for balanced development in the various geographical regions of the country.
- The state shall pursue a policy of mobilizing the natural resources and heritage of the country in a manner which might be useful and beneficial to the interest of the nation.
- The state shall create a condition for the economic progress of the majority of the people, who are dependent on agriculture, by introducing measures which will help in raising productivity in the agricultural sector and develop the agricultural sector on the principles of industrial growth by launching land reform program.
- The state shall pursue a policy of increasing the participation of the labor forces, the chief socio-economic force of the country, in the management of enterprises by gradually securing employment opportunities to it ensuring the right to work and thus protecting its rights and interests.
- The state shall pursue a policy of making female population participate, to a greater extent, in the task of national development of making specials for their education, health and employment.
- The state shall, with a view to bringing prosperity in the country, pursue a policy of giving priority to the development of science and technology and shall also give due consideration to the development of local technology.
- The state shall, for the purpose of national development, pursue a policy of taking necessary measures for the attraction of foreign capital and technology while at the same time promoting indigenous investment.
- The state shall pursue a policy of creating conditions for the acceleration of the speed of the rural development, keeping in view the welfare of the majority of the rural population.
b) Economic environment
c) Socio-cultural environment
d) Technological environment
- By directly importing new technology into the country,
- By opening branch of multinational companies,
- By handing over the management of industry and business to foreign firms or experts,
- By sending indigenous manpower to foreign countries for study and training,
- By inviting foreign technicians to industry or company etc.
2. Environmental Impact on Marketing Activities
|Strong economic system, favorable economic policies, political stability, healthy competition, etc. provide opportunities to marketing but elements such as increase in instability, unhealthy competition, political instability, frequently changing economic policy, development in technology etc. become threats. So, the environment affects marketing in both ways, positively and negatively.|
a) Positive impact
- Provides opportunities: Environment provides different opportunities to marketing. Favorable economic policies, stable politics, healthy competition, strong financial market etc. greatly help in expansion and development of marketing.
- Reduces uncertainty: Environment is dynamic. The changes in it increase uncertainty in marketing. However, such uncertainties can be minimized by scanning and regular monitoring. In other words, favorable economic policies, stable politics, healthy competition, strong financial market etc. help to lessen uncertainty in marketing.
- Helps to identify consumers’ needs: Consumers’ needs and wants may be many and different. Demands can be increased by identifying their wants and needs through environmental scanning.
- Helps in goal achievement: Organizational goal can be achieved by bringing improvement in performance after scanning, analyzing and studying the changes in environment. So, environment helps in goal achievement.
- Helps to identify the strength: Proper utilization of strong aspects should be utilized to achieve success in marketing. This needs careful analysis and scanning of dynamic environment.
b) Negative Impact
- Increase in uncertainty: Dynamic environment increases uncertainty. If the changing and dynamic environment cannot be correctly scanned and analyzed, it negatively affects marketing. Unstable politics, ever changing economic policy, unhealthy competition, etc. have increased uncertainty in Nepalese marketing.
- Gives threats: Environment does not always provide opportunity to marketing, it also gives threat. Unfavorable economic policies, unhealthy competition, weak financial market, unstable politics, corrupt practices etc. give threats to marketing.
- Difficult to goal achievement: Consumers’ demands should be increased by identifying and analyzing their wants and needs. If the environment becomes difficult, uncertainty increases and correct and sufficient information is not available, it becomes difficult to identify the needs and wants of the consumers. It makes goal achievement difficult.