marketing environment in Nepal

Marketing environment in Nepal

Here we study the factors which affects and business’ marketing capabilities and strategies in Nepalese environment.

Macro environment:

• Political: The major setback for any business in Nepal concerned with the political aspect is the lack of strong and consistent government. For many decades the Nepal hasn’t been able to have a strong and consistent government hence the rise in corruption, unclear foreign policies, minimal economic development, etc affecting the marketing ability of foreign as well as national business organizations.

• Economic: Nepal, an under-developed nation, has since the past many decades not been able to lift its economic status. Due to various factors the economic performance of our nation has been below par. There is and increasing gap between rich and poor, heavy dependence on remittance which will affect the performance of the economy in the long run. The slow economic growth and increasing unemployment negatively affects the marketing environment of Nepal.

• Social-cultural: The major portions of Nepalese population live in rural areas with very small markets. High numbers of population are uneducated. There is an increasing trend of domestic and international migration. Major religion being Hindu and with joint family structure the major number of population are very traditional in thinking which affects the marketing strategies of businesses.

• Technological: Nepal is far behind in use of contemporary technologies. the level of research and development is poor with very minimal level of technological transfer. There is heavy dependence on manual labor and older technologies.

• Legal: the major fault in Nepalese legal system is the lack of clarity in many laws, rules and regulation. Nepal has a very poor legislative and administrative system.

• Environmental: in Nepal the is very minimal attention given to the environment by stake holders. The positive aspect to this is the emerging concepts of corporate social responsibility in a few companies and regulatory bodies.