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Chapter 9

Chapter 9

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Published by Ghani Thapa
New area of marketing in modern days
New area of marketing in modern days

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Published by: Ghani Thapa on Jul 24, 2014
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Chapter- 9 , Emerging Issue in Modern Marketing

Chapter – 9
Emerging Issues I n Modern Marketing

Meaning and Definition of Agricultural Marketing
Simply, Marketing related to agricultural products is called agricultural
marketing. It is composed of two words ‘Agriculture’ and ‘Marketing’. Agriculture
means the method of growing crops and rearing animals for consumption or resale
whereas Marketing refers to business activities related to plan, promote, sale and
distribute goods or services from producer to consumers. Therefore, agricultural
Marketing can be defined as the services involved in moving an agricultural product
from the farm to the consumer. Numerous interconnected activities are involved in
doing this, such as planning production, growing and harvesting, grading, packing,
transport, storage, food processing, distribution, advertising and sale. It can be defined
as ‘the acts of buying supplies, renting equipment, (and) paying labour, arguing that
agricultural marketing is everything a business does.’
According to Thomsen, ‘the study of agricultural marketing comprises all the
operations, and the agencies conducting them, involved in the movement of farm-
produced foods, raw materials and their derivatives,( such as textiles), from the farms
to the final consumers, and the effects of such operations on farmers, middlemen and
In conclusion, Agricultural marketing is the study of all the activities, agencies
and policies involved in the procurement of farm inputs by the farmers and the
movement of agricultural products from the farms to the consumers. The agricultural
marketing system is a link between the farm and the non-farm sectors. It includes the
organization of agricultural raw materials supply to processing industries, the
assessment of demand for farm inputs and raw materials, and the policy relating to the
marketing of farm products and inputs.

Features of Agriculture Marketing
Agricultural marketing in a broader sense is concerned with the
marketing of farm products produced by farmers and of farm inputs and services
required by them in the production of these farm products. Thus, the subject of
agricultural marketing includes product marketing as well as input marketing.
Following are the features of agriculture marketing;
1. Seasonal Production: Most of the agricultural goods are produced only in certain
season. The food crops such as maize, paddy, wheat etc.; cash crops such as
sugarcane, tobacco, jute and vegetables, potato and fruits are produced in certain
suitable seasons. Everything cannot be produced in all seasons. So, seasonal products
affect agricultural market.

Chapter- 9 , Emerging Issue in Modern Marketing

2. Scattered Production: Except some limited goods most of the agricultural goods
are produced in all parts of the country. As farmers live scattered in different parts of
the country, middlemen collect agricultural products and supply to markets.
3. Perishable Products: Most of agricultural products are of perishable nature, but all
are not equally perishable within same duration of time. Some perish within shorter
time and some others remain usable for little longer. Fish, milk, meat, fruits,
vegetables etc. remain fresh only for shorter time, so they are quick perishable. Such
products should be supplied to market as quicker and possible. Special cold storage is
needed to keep such goods safe and fresh. Food crops/grains such as rice, wheat,
mustard etc, remain usable relatively for long time.
4. Bulky Products : Most of the agricultural products are weighty and bulky. So,
transport and storage cost rises higher than the value of these products.
5. Quality and quantity variation :Quality and quantity of agricultural products
become different according to the productivity of land, season and climate. The
quality of seeds, use of fertilizers etc. also causes difference in quality.
6. Continuous consumption : Agricultural products are very important to meet daily
needs of people. So, it is necessary to have regular supply of agricultural products
such as food grains, fish, meat, milk, fruits etc to satisfy daily demand.
7. Inelastic demand : The demand for agricultural products remains relatively less
elastic. Demand for such products does not decrease or increase due to rise or fall of
prices. The consumers are compelled to meet their daily needs at minimum level, even
if the price of agricultural products rises up.
8. Price fluctuation: The price of agricultural products remains unstable. It fluctuates
time and again. The price of agricultural products is easily affected by supply and
Agriculture, regarded as the backbone of Nepalese, is still in an economy, is
still in an underdeveloped state. Its operation is yet in subsistence level. The yield per
unit of land is very low and single cropping prevails in most parts of the country.
Agriculture in Nepal has been facing a number of problems as discussed below:
1. Increasing Pressure of Population : The pressure of population on land is already
very high and ever increasing. Average annual population growth rate in Nepal is 2.25
percent and the density of the population is 157 persons per square kilometre. Since
other sectors of the economy are growing at a slow pace, agriculture sector constitutes
the main source of employment to the people. Owing to high pressure of population,

Chapter- 9 , Emerging Issue in Modern Marketing

the cultivated land is continuously fragmented and sub-divided. A majority of holding
is very small in size. Difficulty in introducing improved farming techniques is its
major consequence. As a result, both the production and productivity are adversely
2. Traditional Techniques: Agriculture in Nepal is based on traditional technology.
Lack of education and widespread poverty has disabled Nepalese peasants from being
able to increase production and productivity. They are either ignorant or unable to use
appropriate agriculture inputs such as new techniques, improved seeds, fertilizers,
insecticides, etc.
3 Lack of Agriculture Credit About 30.85 percent of the people in Nepal are below
the poverty line and most of them are farmers. The only solution to the problem is the
provision of credit. But there are inadequate institutional credit facilities. Provision of
agriculture credit through Agriculture Development Bank, Nepal (ADB/N) does not
reach out to the majority of the poor people. Whatever facilities are available, the poor
do not have easy access to such facilities. Moreover, the existing procedures and
complexity in borrowing problems the poor farmers. Hence, most of the farmers have
no better alternative then to borrow from local money lenders or jaminadaars.
4.Large Number of Middlemen: The field of agricultural marketing is viewed as a
complex process and it involves a large number of intermediaries handling a variety of
agricultural commodities, which are characterized by seasonality, bulkiness,
perishability, etc. The prevalence of these intermediaries varies with the commodities
and the marketing channels of the products. Because of the intervention of many
middlemen, the producer’s share in consumer’s naira is reduced.
5.Lack of Transport Facilities This problem has many dimensions. Lack of transport
services refer to absence of the transport service in reasonable agricultural marketing
areas, seasonality of transport service, high freight charges due to inadequacies, lack
of all-weather roads and transport vehicles, unsuitability of the present transport
facilities for transportation of some products like fruits, vegetables, eggs, etc. In some
cases there are insufficient vehicles to carry goods from the farms to the rural markets
and from the rural markets to the towns.
6.Poor Handling, Packing, Packaging, and Processing Facilities: For efficient and
orderly marketing of agricultural products, careful handling and packing are required.
Present packing and handling are inadequate. For instance, many times we see rough
and careless treatment in the packing and initial handling of fruits and vegetables.
Green vegetables are packed in heavy sacks which will be heated up quickly at the
centre, fade and rot soon. Poor handling and packing expose the products to
substantial physical damage and quality deterioration. If there are no processing

Chapter- 9 , Emerging Issue in Modern Marketing

facilities, say, for tomatoes, it means all the harvested crops must be sold within a
given time and because there are packaging problems, quite a substantial part of the
produce may be lost before getting to the market.
7. Lack of Uniform Standardization and Grading: Inadequacies exist in scientific
grading of the produce in the country. In the absence of standardization and grading,
adulteration is the consequence. Each middleman may adulterate the produce to his
short run advantage. This poses a problem in assigning prices to the commodities as
per the quality specifications. Weights are rarely used in marketing food and livestock
products. Pricing is usually haggling and the prices paid depend on the bargaining
power of the buyer.
8. Inadequate Storage Capacity and Warehousing Facilities: Inadequate storage
facilities are the cause of heavy losses to farmers in many parts of the world; and this
result in serious wastage of foodstuffs, and increased costs to producers. There are no
scientific storage facilities for perishable products (fruits, milk, meat, vegetables, fish,
etc.). This storage loses of food grains occur at all stages between the farm level and
the final level of consumption. Such losses occur from physical damages due to pest
infestations, rodents and quality deterioration, discoloration and unpleasant odour
which would make the product unfit for human consumption.
9. Adulteration of Produce and Malpractices in Market : In some cases inferior
commodities are mixed with superior ones and are sold as superior commodities. This
is possible since there are no grades and there are no quality control measures. Also
the manipulation of weights and measures is still prevalent in the unregulated markets
in spite of the introduction of uniform system of weights.
10.Communication Problem :One of the key elements of efficient agricultural
marketing system is the availability of proper communication infrastructure. Rural
areas are inadequately placed with reference to posts, telegraphs and telephone. The
literacy rate being low among the farmers, it poses difficulty of the communication
11.Lack of Information about Production and Marketing: Some marketing
problems can be traced to lack of information about production. For instance, sellers
may not be able to identify sources of supply of commodities, while producers may
curtail their production as a result of poor sales. Market information, however, is
essential for producers, traders, consumers as well as the Government, if market
mechanism has to work efficiently. The relevant market information deals with
character and volume of supply of commodities, the present and expected level of
consumers’ demand, current price quotations and future price trends for different farm
products and their probable impacts on prices. Market news provides current

Chapter- 9 , Emerging Issue in Modern Marketing

information on prices, arrivals, etc. But in reality the farmers more often than not, are
in total dark as far as this information is concerned. The farmers do not know the
information on the existing prices of the products in the important markets. By and
large, the farmers rely on the price information furnished by the traders. The price
information provided generally is quite advantageous to the traders, rather than to the
12.Lack of Farmers’ Organization: The farmers are scattered over a wide area
without any common organization. In the absence of such organization, farmers do not
get anybody to guide them and protect their interests. On the other hand, traders are an
organized body. Thus, the marketing system, therefore, constitutes unorganized
farming community on one side and organized and powerful traders on the other side.
Under such situations, farmers will be generally exploited and do not get remunerative
prices for their produce.
Prospects of Agricultural Marketing in Nepal
Agricultural Marketing in Nepal has good prospects due to following reasons;
1.Increased Demand for Agro- Products: Due to increase in population growth of
Nepal, there is increasing demand of food products. Mostly of the agro-products are
basic needs to the consumers and required on daily bases. The demand is always there.
Consequently, it increases the prospects of the Agricultural marketing in Nepal.
2.Provision of Agricultural Marketing Training to Farmers : Provision of training
is of utmost importance in view of the malpractices resorted to by various market
functionaries. The farmer needs to be trained in product planning i.e. crops and
varieties to be grown, preparation of produce of produce for marketing, malpractices
and rules and regulations, market information, promotion of group marketing, etc.
This will help to increase the productivity as well as better understanding about
agricultural marketing and its explanation of possible market.
3. Export Possibility: Nepal is rich in bio-diversity and there is possibility of export
and promotion of agro-product to foreign countries. This help to earn foreign
currencies. Eventually, it increases the possibilities of agricultural marketing.
4. Improvement in infrastructure: In recent year the pre- requisites things for the
development are being developed and carried on. This has lead the development of
infrastructure like transport, communication, road networks, warehousing, etc. These
all facilities encourage the promotion, movement and storage of agro-products.
5. Agriculture Finance: The formal institutional sources of finance are increasing in
Nepal. Cooperatives, Agricultural Development Bank, commercial banks, Rural

Chapter- 9 , Emerging Issue in Modern Marketing

Development bank, Micro- credit finance companies and other financial institutions
provides long term and short term loans. This helps the helpless farmers to improve
their productivity and encourage the agricultural marketing.
6. Government Policy: The government has been giving priority to agriculture sector
in development plan. Many facilities and incentives are provided to farmers for
increasing agricultural products. The number of food processing industries is
increasing. These factors provide good prospects for agricultural marketing.
7. Market Information: The information system of Nepalese agricultural marketing
is quite improving. The flow of information regarding prices, competitors, stocks,
buyer, agro-products and marketing surveys are easily available to farmers and other
stakeholders. From these available information the farmers can plan better for there
products. This enables farmers to sell their products in right time in right price. All
these positive and useful information provides goods prospects for agriculture
The industrial marketing is composed to two words, ‘industrial or industry’ and
‘marketing’. Industry is concerned with production of goods through manufacturing,
processing and fabricating whereas Marketing refers to business activities related to
plan, promote, sale and distribute goods or services from producer to consumers.
Therefore, Industrial marketing can be defined as the buying and selling of industrial
goods and services to the industrial users and institutional customers. Industrial user
and institutional buyers use and purchase products or services in their own production
of goods and services or in the operation of their enterprises. That is why, industrial
marketing is also known as Business to business Marketing (B2B marketing).
1. Derived Demand: Industrial marketing is based on derived demand. The demand
for industrial goods depends on the demand for consumer goods. The products are
produced all-round the year. The production is continuous and on a large scale.
2.Few buyers: The customers for industrial goods are institutional user or buyer.
There number is small. They are concentrated in limited areas or located at a
particular region or industrial districts or estates. Even they are few in numbers their
transactions are in large quantity.
3. Professional Buying: They buying of industrial goods are done professionally.
Trained and skilled employees are used for buying. Quotation and tender are used as
buying instruments. Procurement or purchase department is responsible for buying.

Chapter- 9 , Emerging Issue in Modern Marketing

They buy the product by making rational decision which is based on up-to-date
4. Technical Consideration: Many technical considerations are involved in buying of
industrial goods. A buyer of industrial goods may have special requirements and these
are carefully considered before making the purchase. Tailor-made products are also
manufactured based on consumers specifications.
5. Short Channel: Industrial goods are marketed through short channels. It can be
direct marketing from manufacturer to buyer. Authorized dealers are also appointed to
sell the goods to industrial users. Retailers are not used.
6. Promotion: In industrial marketing, the importance is given to personal selling.
Relationship marketing is importance. There is close relationship between the buyer
and salesperson. There is less use of advertising compare to consumer products. The
sales promotional activities include participation in exhibitions or trade shows.
7. After sales Services: Industrial products require after sales service. It can be for
installation, repair, maintenance, warranty, guarantee and training. The producer
provides such service through its own services department or through authorized
service canters.
Nepalese industrial are mainly engaged in manufacturing. They are growing
slowly. Industrial marketing in Nepal suffers from following problems.
1. Small Domestic Market: The domestic market for Nepalese industrial product is
very limited due to small size of the country and its population. The purchasing power
of people is low due to low income level. Due to the low development of
transportation facilities products cannot be marketed easily throughout the country.
2.Low Productivity: Productivity refers to the ratio of input to output. Nepalese
industries are not operated in full phased capacity utilizations. Shortage of raw
materials, outdated technology, poor management and political disturbances are
responsible for poor capacity utilization.
3. Poor Quality: Nepalese products suffers from low quality. Low quality and higher
prices of the products have badly affected industrial marketing. Besides, Nepalese
products have to compete with imported products.
4. Inadequate Infrastructure: Nepal suffers from inadequate infrastructure for
industrial marketing. Infrastructures like road facility, facility of power and water,

Chapter- 9 , Emerging Issue in Modern Marketing

bank and insurance, communication etc are lacking behinds and are not sufficient for
industrial development.
5. Power Shortage: Even though, Nepal is the second largest potential in the world
for hydropower generation, But Nepal has not been able to utilize even the 5 percent
of this potential. Load Shedding is common and increasing. Power shortage has led to
decline in industrial production. This has badly affected industrial marketing.
6.Labour Problem: Nepal’s industrial sector badly suffers from labour problems. The
labour unions are affiliated to political parties. Strikes, protest and labour unrest are
common due to political reasons. Industrial relations are not harmonious. This has
badly affected industrial marketing.
7. Changing Government Policies: Government keep on changing in Nepal.
Industrial policies also change with the changes in government. The implementation
of policies is also very poor. Bureaucratic procedures delay decision making. There is
lack of mutual trust between government and business.
8. Poor Access to Finance: Nepal’s industrial sector suffers from poor access to
finance. The banking sector is collateral oriented. Interest rates are high. Corruption is
widespread in financial institutions. Foreign investment is also poor.
The prospects of industrial marketing in Nepal are growing due to the
following reasons:
1.Population Growth: Nepal’s population is about 30 million and population growth
rate is about 2.3 per year. Increase in population indicates increase in consumer goods
and consequently, increases the demand for industrial goods. Urbanization is
increasing in Nepal. This indicates good prospects for industrial marketing in Nepal.
2. Increasing Income: The per capita of Nepalese are increasing. The increasing
amount of remittance from Nepalese worker in foreign countries has contributed to
increase in income. Increasing incomes indicates the purchasing power of people and
higher demand for consumer products. This indicates bright future for industrial
3. Positive Industrial Policy: Suitable industrial policies of the state play a vital role
to lead industrials towards the peak of successful industrialization. The government
has formulated industrial policy 2010. It provides favourable climate for industrial
growth by providing incentives and facilities to industrial. Tax rebate has been granted
to attract foreign direct investments. This indicate good prospects for industrial growth
and industrial marketing.

Chapter- 9 , Emerging Issue in Modern Marketing

4. Increasing Industrial Units: Industrial Units in Nepal are increasing. This
increases the level of employment and income of the people. A numbers of sugar,
cement, iron, electronic and food processing industries are established. This lead to an
increase in the demand for industrial products and this indicates good prospects for
industrial marketing.
5. Increasing Infrastructure: The infrastructure needed for industrial development is
increasing in Nepal. Road network, Telecommunication, storages facilities, banking
and financial facilities are slowly developing in Nepal. Power generation projects are
under implementation. New industrial districts and estates are being planned. All these
factors provide good prospects for industrial marketing.
E-commerce or electronic commerce describes the buying and selling of
products, services, and information via computer networks including the Internet. It is
about doing business electronically. In another words, Electronic commerce is sharing
business information, maintaining business relationships and conducting business
transactions by means of telecommunications networks. Here, buyer and seller
connect with each other through electronic Medias. It is not necessary to have face to
face contract or physical presence of the buyer and seller. It is the result of
development of information technology and communication technology.
Ecommerce (e-commerce) or electronic commerce, a subset of e-business, is
the purchasing, selling, and exchanging of goods and services over computer networks
(such as the Internet) through which transactions or terms of sale are performed
electronically. Following are the methods of e-commerce;
1. B2B (Business-to-Business); Companies doing business with each other such as
manufacturers selling to distributors and wholesalers selling to retailers. Pricing is
based on quantity of order and is often negotiable. The volume of B2B (Business-to-
Business) transactions is much higher.
2. B2C (Business-to-Consumer); B2C stands for "business-to-consumer" and applies
to any business or organization that sells its products or services to consumers over the
Internet for its own use. Businesses selling to the general public typically through
catalogues utilizing shopping cart software using internet.
3. C2B (Consumer-to-Business); Consumer-to-business (C2B) is an electronic
commerce business model in which consumers (individuals) offer products and
services to companies and the companies pay them. This business model is a complete

Chapter- 9 , Emerging Issue in Modern Marketing

reversal of traditional business model where companies offer goods and services to
consumers (business-to-consumer = B2C).
4.C2C (Consumer-to-Consumer); Consumer-to-consumer (C2C) (or citizen-to-
citizen) electronic commerce involves the electronically facilitated transactions
between consumers through some third party. A common example is the online
auction, in which a consumer posts an item for sale and other consumers bid to
purchase it; the third party generally charges a flat fee or commission. The sites are
only intermediaries, just there to match consumers. They do not have to check quality
of the products being offered. There are many sites offering free classifieds, auctions,
and forums where individuals can buy and sell thanks to online payment systems like
PayPal where people can send and receive money online with ease. eBay's auction
service is a great example of where person-to-person transactions take place every day
since 1995.
Internet marketing is the process of marketing or selling of goods and services
over the Internet. With the development of e-commerce and online services,
consumers do not need to go to the shop or any other commercial place for selling or
marketing of the products and services. Internet marketing makes all the selling in a
rapid way.
Internet Marketing can be defined as marketing or selling or promotion of
brands, products, services to the consumers by utilization of internet as a digital
medium. It simply means that we are using internet or in other words accessing the
World Wide Web for performing activities of marketing. Internet marketing is also
known as online marketing or web marketing. Moreover the word iMarketing is also
used as an abbreviated form for internet marketing
Internet marketing is a buzz word that’s gaining steady popularity in the recent
times, and has emerged as a cost-effective way of promoting a small to medium sized
business. It does not require the time and the resources that are needed in traditional
marketing strategies and is indeed a revolution in the field of business promotion and
advertisements. Here is a list of some of the key features of internet marketing:
1. Cost Effectiveness: Internet marketing is a very cost effective option of promoting
business. Internet marketing will make the business promotion dynamic and lively at a
very nominal cost. A firm can save a number of costs. These include:

Chapter- 9 , Emerging Issue in Modern Marketing

i. Staffing costs: Fewer staff are needed online then in the high street thus
reducing costs.
ii. Premises: The Company will not need retail outlet just a centralised
office and possibly warehouse space, saving on potential retail costs.
iii. Disintermediation: The channel of distribution is shorter online as the
consumer has the opportunity to buy directly. As one of intermediaries
is cut out this process is known as disintermediation.
iv. Financial management: As consumers pay for the product before it is
dispatched, this improves the cash flow for the company, making sure
for the firm that they can pay their suppliers and other costs on time.
2. Very Wide Reach: One of the major online marketing benefits is that it has global
reach. Internet is a medium, which will enable a potential client from the other end of
the world to reach without any trouble. So, it can conveniently eradicate the traditional
geographical boundaries and access a wide of pool of client base easily accessed with
the help of properly implemented internet marketing strategies
3.Availability of 24 Hours : Online marketing is available 24/7 for the customers
through internet. Internet marketing enables to open the business around the clock
without worrying about store opening hours or overtime payments for staff. Offering
the products on the Internet is also convenient for customers. They can browse online
store at any time and place orders when it is convenient for them..
4. Data Collection: Internet is a central depository of data. It can be accessed all over
the world through search engines. Millions of websites contain information. They can
be downloaded as needed.
5. E-mail: E-mail is an online correspondence system. With e-mail one can send and
receive instant electronic messages, which works like writing letters. The messages
are delivered instantly to people anywhere in the world, unlike traditional mail that
takes a lot of time.
6. Relationships :The Internet provides an important platform for building
relationships with customers and increasing customer retention levels. When a
customer has purchased a product from the online store that begins the relationship by
sending a follow-up email to confirm the transaction and thank the customer.
Emailing customers regularly with special, personalized offers helps to maintain the
relationship. Marketer can also invite customers to submit product reviews on your
website, helping to build a sense of community.

Chapter- 9 , Emerging Issue in Modern Marketing

Internet is today one of the most important part of our daily life. There are large
numbers of things that can be done using the internet and so it is very important. You
can say that with the progress in the internet we are progressing in every sphere of life
as it not only makes our tasks easier but also saves a lot of time. Today internet is used
for different purposes depending upon the requirement. Here are some best uses of the
internet. Here goes the list.
1. Communication: At the moment the easiest thing that can be done using the
internet is that we can communicate with the people living far away from us with
extreme ease. Earlier the communication used to be a daunting task but all that
changed once internet came into the life of the common people. Now people can not
only chat but can also do the video conferencing. It has become extremely easy to
contact the loved ones who are in some other part of the world. Communication is the
most important gift that the internet has given to the common man. Email, social
networking sites are some of the prime example of it.
2. Research: In order to do research you need to go through hundreds of books as
well as the references and that was one of the most difficult jobs to do earlier. Since
the internet came into life, everything is available just a click away. You just have to
search for the concerned topic and you will get hundreds of references that may be
beneficial for the research. Research is one such thing which has got lots of benefit
from this evolution of internet. Research process has now got wings and has gained
the most due to the internet.
3. Education: Education is one of the best things that the internet can provide. There
are a number of books, reference books, online help centres, expert’s views and other
study oriented material on the internet that can make the learning process very easier
as well as a fun learning experience. There are lots and lots of websites which are
related to different topic. One can visit them and can gain endless amount of
knowledge that they wish to have.
4. Financial Transaction: The next use mentioned here is financial transaction.
Financial transaction is the term which is used when there is exchange of money. With
the use of internet in the financial transaction, the work has become a lot easier. Now
there is no need to stand in the queue at the branch of particular bank rather one can
just log in on to the bank website with the credential that has been provided to the
account holder by the bank and then can do any transaction related to finance at
customer’s will. With the ability to do the financial transaction easily over the internet
one can purchase or sell items so easily. Financial transaction can be considered as
one of the best uses of resource in the right direction.

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6. Leisure; Right from watching favourite videos to listening songs, watching movies,
playing games, chatting with the loved ones has been possible due to internet. Internet
has progressed with so much pace that today whenever you get time, you just move on
to the internet and so such activities which helps you to relax. Leisure is one of the
most important uses of internet and that has surely one thing that attracts people
towards it. Internet is home of some of the excellent resources using which you can
freshen up your mood in minutes.
7. Online Booking: The booking process has simplified because of the internet and
this is the best use of the resources that we have. The online booking process is easier
as well as less tedious but is also reliable. There is no need to visit the booking
counters to book tickets or to contact the agents that might ask for more money in
order to process your request. All these things can be done sitting at home, using
8. Shopping; Shopping has now become one of the most pleasing things to do using
the internet. Whenever consumer find time, they just visit the concerned websites and
order the items that they need from there. Those items will be delivered to consumer
in best possible time. There is huge number of options available for a common people
to buy or to sell any particular item using the internet. Using internet now it is possible
to buy products from all over the world.
Telemarketing is contact, via a telecommunications service, from an
individual or organisation whose aim is to supply, provide, advertise or promote goods
and services. Telemarketing can be conducted by a telephone call to a landline, mobile
or VoIP number, by a short message (SMS or text) to a mobile telephone number, by
fax to a fax number, or via the Internet or any other means.
Televised Marketing refers to the use of television to introduce and offer goods
or services to consumers. The information like features, use and benefits about the
product is shown in television. Interested consumers can order via telephone mobile or
internet. Free home delivery is made. It is direct and non-store retailing marketing.
SKY SHOP is example of televised marketing.
Telemarketing and televised marketing both are direct marketing and non-store
retailing marketing. These types of marketing eliminates the middlemen. The features
of marketing are as follows;

Chapter- 9 , Emerging Issue in Modern Marketing

1. Use of Telephone and Television: Telemarketing involves contacting customers by
phone to make product or service offers. It is the act of marketing goods or services to
potential customers over the telephone. Whereas televised marketing use television
and telephone for buying and selling purpose.
2.Directing Marketing: Telemarketing and televised is a direct marketing technique
for selling goods and services. It directly contacts to the customers and perform the
direct clear talk regarding products or services. No middlemen are used to link
between manufactures and customers.
3.Toll Free Telephone Number: Prospective customers are provided with toll free
number to place orders. E-mail address is also provided to place orders.
4. Electronic Payment: Customers use credit card or debit card to make payment for
the products. They provide their credit card number to the seller. There is no cash
5. Home Delivery: Products are delivered directly to the homes of customers.
Delivery is made free of charge. The customer is not required to visit stores to collect
6. Attractive Offers: The seller makes attractive offers to the customers. Sales
promotion schemes for branded products are offered. The price is cheaper than the
market price. Advertising is done in newspaper, radio, television, internet to inform
and persuade customers.
The practices of telemarketing and televised marketing are in its primitive stage
in the context of Nepal. The major problems are as follows;
1. Limited Reach: The reach of telephone and television is limited in Nepal. Not
every household has telephone or television connection. This has confined the reach
of televised and telemarketing to urban areas. Rural areas have largely remained
outside their reach.
2. Illiteracy: The illiteracy rate in Nepal is high. Almost half the population cannot
read or write. Women illiteracy is widespread. They do not know even how to make a
call. They are also unable to understand the advertisement shown in Television. This
limits the effectiveness of television and telemarketing.
3. Power Cut: Nepal suffers from power shortages. Load shedding is common. This
adversely affects televised marketing.

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4. Cheating: Products cannot be inspected by customers prior to buying. There is
chance of customers getting cheated by dishonest sellers. Return or exchange facilities
are not available.
5. Legal Problem: There might be conflict between buyers and sellers for payment
made by the electronic means due to lack of proper legal provision in Nepal.
6.Interference in Privacy: Telemarketing interferes in consumers privacy. Telephone
calls to customers may be made at odd hours to persuade them for buying products.
Televised and telemarketing have good prospects in Nepal due to following
1. Consumer Awareness: The level of awareness among consumers is gradually
increasing. The practice of buying products through telephone and television is also
2 Extension of telephone Network: The telephone network is increasing in Nepal.
The monopoly in telephone line of government has been changed. Beside Nepal
Telecom, there are other telecommunication companies like UTL, Ncell, Spice Nepal
etc .The cost of telephone charge is getting low due to competition. Mobiles phones
are getting popular and cheaper. Even rural areas are getting connected with
telephone. All these provide good prospects for telemarketing.
3. Advent of Direct to Home(DTH) system for Television: Cable television network
in Nepal has been supplemented by direct to home system. This increase the reach of
television even in remote rural areas. This provides prospects for the televised
4. Increasing Literacy: The rate of literacy has been increasing. The people are
started to understand about new emerging concepts of marketing. They understand the
process and procedures of telemarketing and televised marketing. As the requirement
they are making purchase using these modern tools of marketing.
5. Growth and Diversification of Bank: The number of banks and finance
companies is increasing rapidly. Therefore, the people are getting habituated to use
credit card for payment. This helps for development of televised and telemarketing.
6. Legal Reforms: Legal reforms are underway to allow electronic payments. This
provides prospects for both telemarketing and televised marketing.

Chapter- 9 , Emerging Issue in Modern Marketing

As the term suggests, network marketing is simply marketing through a
network of personal connections or relationships. It is direct form of marketing which
sells the product or services directly to the consumers by eliminating middlemen like
wholesaler and retailer. Network marketing is the process of making members and
selling them the product directly and each of the member attempts to make new
members in the network and the sell the products. It is also known as multi-level
marketing or pyramid marketing. The salesperson known as ‘distributor’ and the
recruits are known as a distributor's "downline." All distributors also make money
through direct sales of products to customers. AMWAY is an example of a well-
known direct-sales company that uses multi-level marketing. Therefore network
marketing is a system for selling goods or services through a wide network of
distributors, each of whom is responsible and compensated for recruiting new
members to the multi-level marketing system.
Network marketing is important due to the following reasons;
1. Increase in Social Relationship: It helps for long lasting personal relationship
with both costumers and downline members. Since, it is selling directly to
friends, family members, and neighbours it is also known as relationship
marketing. The people can make their social network strong through network
2. Income Generation; Networking marketing is specific kind of business model
rewarding compensations to individual involved. An individual in any network
marketing corporations earns money because of self-effort and from the effort
of his/her down line members after joining the network.
3. Independence: The owner of network marketing business enjoys
independence and freedom. Person can work from home and can work full time
or part time. It is suitable to people of all ages and all professions. They have
flexibility in work. Everybody is his own boss.
4. Low Cost: Overhead expenses are low in network business. There is no costs
for rent, staffing, inventory and promotion. There is no bad debts. Wide
distribution is possible at low cost. Wholesaler and retailer are eliminated.
Products price is 20 to 30% lower than the market price.
5. Time Saving: Customers save time in shopping. They do not go to stores.
Salesperson come to them. They receive service when and where they want it.
6. Qualitative Products at Reasonable Price: Customers can get highly
qualitative products at reasonable price through network marketing. The
products are not available in the market through any wholesaler or retailer. The
products are branded and in affordable price.

Chapter- 9 , Emerging Issue in Modern Marketing

7. Low Capital Investment: Most of network marketing companies allows
people to start a home business with a small capital investment. This allows
more people to get involved.

A. Answer in Very short:
1. What is E-commerce?
2. Define Internet marketing.
3. What is telemarketing?
4. What is televised marketing?
5. What is network marketing?
B. Answer in short:
6. Explain the features and method of e-commerce?
7. Explain the importance of network marketing?
8. Explain the features of agricultural marketing?
9. Explain the features of industrial marketing?
10. Explain the features of telemarketing and televised marketing?
C. Give long answer:
11. What is agricultural market? Discuss the problem and prospects of
agriculture marketing in Nepal.
12. What is Industrial Marketing? Discuss the problems and prospects of
industrial Marketing in Nepal.
13. What is telemarketing and televised marketing? Discuss the problems and
prospects of telemarketing and televised marketing in Nepal.

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