Class 12 Marketing Emerging Issues in Modern Marketing Notes and Important Questions

Class 12 Emerging Issues in Modern Marketing Notes (Marketing)

Chapter 6 Emerging Issues in Modern Marketing NEB Class 12 | Marketing (Mar. 308) | Unit 6 Allotted Teaching Hours: 20 Hours Topics: 6.

Marketing | Class 12 Ch. 6

Chapter 6 Emerging Issues in Modern Marketing NEB Class 12 | Marketing (Mar. 308) | Unit 6 Allotted Teaching Hours: 20 Hours Topics: 6.1 - 6.5 Why this chapter matters: Chapters 2-5 covered the classic 4 Ps that apply to almost any product. This chapter looks at how marketing changes across different fields and new technologies - agriculture, industry, the internet, telephone/TV, and international trade. These are the 'emerging' and specialised areas of marketing that are becoming increasingly important in Nepal's economy. 6.1 Agricultural Marketing A. Meaning Agricultural marketing covers all the activities involved in moving farm produce - crops, vegetables, fruits, livestock products - from the farm to the final consumer. It includes assembling, grading, storage, transportation, processing and distribution of agricultural goods. B. Features of Agricultural Marketing - Perishable nature - most agricultural products (vegetables, fruits, milk) spoil quickly and need fast handling. - Seasonal production - output is concentrated in specific harvest seasons, but demand is spread throughout the year. - Bulky and heterogeneous - agricultural produce is bulky to transport, and varies in size, shape and quality. - Dependent on nature - production is heavily affected by weather, climate and natural calamities. - Produced by scattered small farmers - in Nepal, most farms are small and geographically dispersed, making collection difficult.

Marketing | Class 12 Ch. 6

- Involves many middlemen - produce typically passes through collectors, wholesalers and retailers before reaching consumers. - Price fluctuation - prices vary sharply between harvest season (low price/glut) and off-season (high price/scarcity). C. Problems of Agricultural Marketing in Nepal - Lack of adequate storage and cold-chain facilities, leading to post-harvest loss. - Poor rural roads and transportation, making it hard to move produce to market on time. - Lack of market information - farmers often do not know current market prices. - Exploitation by middlemen, who capture a large share of the final consumer price. - Absence of proper grading and standardisation of agricultural produce. - Limited access to agricultural credit and insurance for farmers. - Small and scattered land holdings, which limit economies of scale. - Very few agro-processing industries to add value to raw produce. D. Prospects of Agricultural Marketing in Nepal - Growing domestic demand due to urbanisation and population growth. - Rising opportunity for organic farming and export of high-value crops (tea, coffee, cardamom). - Government programmes and subsidies supporting commercial agriculture. - Improving road networks connecting rural production areas to urban markets. - Growth of agricultural cooperatives and contract farming arrangements. - Emerging e-commerce/apps that connect farmers directly with urban buyers. E. Functions of Agricultural Marketing - Assembling - collecting small quantities of produce from scattered farmers into larger lots. - Grading and standardisation - sorting produce by quality, size or type. - Storage/warehousing - holding produce safely between harvest and sale. - Transportation - moving produce from farms to markets. - Processing - converting raw produce into a more usable/durable form (e.g. milling rice, drying spices).

Marketing | Class 12 Ch. 6

- Financing - arranging funds needed at various stages of marketing. - Risk-bearing - absorbing the risk of spoilage, price fall, or loss during marketing. - Market information - collecting and sharing data on prices, demand and supply. - Selling - the final transfer of ownership from seller to buyer. 6.2 Industrial Marketing A. Meaning Industrial marketing (also called business-to-business or B2B marketing) refers to the marketing of goods and services to businesses, industries and organisations for further production, resale, or operation of their business - rather than to final consumers. B. Features of Industrial Marketing - Derived demand - demand for industrial goods depends on the demand for the final consumer product they help produce. - Fewer but larger buyers - compared to consumer markets, industrial buyers are fewer in number but purchase in bulk. - Direct/short distribution channels - goods often move directly from producer to industrial user. - Rational, technical buying decisions - purchases are based on specification, quality and price rather than emotion. - Long-term relationships - buyers and sellers often build ongoing supply relationships. - Geographic concentration - industrial buyers tend to be concentrated in industrial zones/areas. C. Types of Industrial Buyers - Producers - firms that buy raw materials/components to manufacture other goods. - Resellers - wholesalers/retailers who buy finished industrial goods to resell them. - Government bodies - buy goods and services for public use, often through tenders. - Institutions - hospitals, schools and NGOs that buy goods/services to run their own operations.

Marketing | Class 12 Ch. 6

D. Problems of Industrial Marketing in Nepal - Limited industrial base and small number of large manufacturing firms. - Shortage of skilled industrial marketers and technical sales staff. - Heavy dependency on imported machinery and raw materials. - Inadequate infrastructure - power supply, roads, and industrial zones. - Limited access to modern technology and market research. - Political instability and policy uncertainty affecting industrial investment. E. Prospects of Industrial Marketing in Nepal - Growing scope in hydropower, cement, and manufacturing sectors. - Government incentives and industrial policy to attract investment. - Potential from regional trade agreements and access to neighbouring markets (India, China). - Rising interest from foreign direct investment (FDI) in Nepali industries. Consumer Marketing vs Industrial Marketing: Consumer marketing targets a large number of individual buyers who buy in small quantities for personal use, often influenced by emotion and advertising. Industrial marketing targets a small number of organisational buyers who buy in bulk for business use, driven by rational/technical criteria and built on long-term relationships. 6.3 E-commerce / Internet Marketing A. Concept and Methods of E-commerce E-commerce (electronic commerce) is the buying and selling of goods and services, or the transmitting of funds/data, over an electronic network - mainly the internet. - B2C (Business to Consumer) - a business sells directly to individual consumers (e.g. an online clothing store). - B2B (Business to Business) - businesses trade with other businesses (e.g. a wholesaler ordering stock through a supplier's portal).

Marketing | Class 12 Ch. 6

- C2C (Consumer to Consumer) - consumers sell directly to other consumers through an online platform (e.g. an online marketplace/classifieds). - B2G (Business to Government) - businesses supply goods/services to government bodies through e-tendering. B. Meaning and Features of Internet Marketing Internet marketing (digital marketing) is the use of internet-based tools - websites, search engines, email, and social media - to promote and sell products and build customer relationships. - Interactive - allows two-way communication between the firm and customer. - Global reach - a small firm can reach customers anywhere in the world. - Cost-effective - generally cheaper than traditional mass media advertising. - Available 24/7 - customers can browse and buy at any time. - Measurable - firms can track clicks, views and sales precisely, unlike most traditional media. C. Importance/Use of the Internet in Business - Provides wider market reach beyond local geographic limits. - Reduces costs of promotion, distribution and operations. - Enables faster communication with customers and suppliers. - Improves customer service through instant support, chatbots and feedback channels. - Provides data and analytics for better business/marketing decisions. - Creates a competitive advantage for firms that adopt it early. D. Steps in a Typical E-commerce Transaction - 1. Browsing - the customer visits the website/app and views products. - 2. Selection - the customer chooses a product and adds it to the cart. - 3. Payment - the customer pays using a digital wallet, card, or cash-on-delivery. - 4. Order confirmation - the seller confirms the order and prepares it for dispatch. - 5. Delivery - the product is shipped and delivered to the customer's address. - 6. Feedback - the customer may rate the product/service for future buyers.

Marketing | Class 12 Ch. 6

E. Advantages and Limitations of E-commerce - Advantages: lower operating cost, wider reach, round-the-clock availability, easy price/product comparison for customers, and detailed data on customer behaviour. - Limitations: requires internet access and digital literacy, risk of fraud/data theft, lack of physical touch-and-feel of the product, and dependency on reliable delivery/logistics. F. E-commerce in Nepal: Problems and Prospects - Problems: limited digital payment penetration outside major cities, trust and fraud concerns among customers, an underdeveloped cyber/consumer-protection law, and weak delivery/logistics infrastructure outside the Kathmandu valley. - Prospects: a large young population using smartphones, rising adoption of digital wallets (eSewa, Khalti, ConnectIPS), growing internet penetration nationwide, and an accelerated shift toward online shopping since the COVID-19 pandemic. 6.4 Telemarketing and Televised Marketing A. Meaning and Features - Telemarketing - marketing and selling products/services directly to customers over the telephone. It can be inbound (customer calls in, e.g. a helpline placing an order) or outbound (the firm calls prospective customers). - Televised marketing - promoting and selling products through television, including TV commercials, infomercials, and dedicated teleshopping channels where customers call a number to order. - Telemarketing gives direct personal contact without a physical visit, and allows instant feedback. - Televised marketing combines visual demonstration with mass reach, and can prompt an immediate response (call now to order). - Inbound telemarketing - the customer initiates the call (e.g. calling a helpline to place an order).

Marketing | Class 12 Ch. 6

- Outbound telemarketing - the firm initiates the call to a prospective customer (e.g. a bank calling to offer a credit card). - Direct-response TV advertising - a short commercial that asks viewers to call or order immediately. - Infomercials - longer, programme-length advertisements that explain and demonstrate a product in detail. - Teleshopping channels - dedicated channels that continuously showcase and sell products. B. Problems of Telemarketing and Televised Marketing in Nepal - Limited phone/TV penetration in some remote rural areas. - Trust issues - customers are wary of fraud calls and fake teleshopping offers. - Lack of a strong regulatory framework for telemarketing practices. - High cost of television airtime for smaller businesses. - Low penetration of digital/card payment systems in some areas, complicating remote purchase. C. Prospects of Telemarketing and Televised Marketing in Nepal - Rapidly increasing mobile phone penetration across the country. - Growing adoption of digital payment platforms (e.g. eSewa, Khalti) supporting remote purchase. - A large, young, tech-savvy population open to new shopping methods. - Growth of dedicated teleshopping channels and infomercials on Nepali television. Advantages of telemarketing/televised marketing: reaches customers without a physical visit, allows product demonstration (TV) or direct conversation (phone), and can generate an immediate order. Limitations: can feel intrusive to customers, depends on trust in remote payment, and cannot let the customer physically inspect the product before buying. 6.5 Other Special Fields of Marketing A. Services Marketing

Marketing | Class 12 Ch. 6

The marketing of intangible offerings such as banking, insurance, education, healthcare and tourism. Services marketing is unique because of four special features, often called the '4 I's': - Intangibility - services cannot be seen, touched or tasted before purchase. - Inseparability - a service is produced and consumed at the same time (e.g. a haircut). - Variability (Inconsistency) - the quality of a service can vary from one provider, or even one occasion, to another. - Perishability - a service cannot be stored for later use (an empty flight seat today cannot be sold tomorrow). Common categories of services include: financial services (banking, insurance), hospitality and tourism, health services, education, professional/consulting services, and transport services. B. Export Marketing The marketing of goods produced in one's home country to buyers in foreign countries. It usually involves the least commitment/adaptation among the international marketing forms - goods are typically produced at home and simply sold abroad. C. International Marketing Marketing activities carried out across the boundaries of several countries, with the firm adapting its marketing mix (product, price, promotion, place) to suit the specific needs of each individual foreign market. D. Global Marketing A standardised marketing strategy applied across the whole world, treating the entire globe as a single market with minimal adaptation between countries (e.g. a global brand using the same logo, packaging and campaign everywhere). E. Why Firms Expand into International/Global Marketing - To find new markets once the domestic market becomes saturated.

Marketing | Class 12 Ch. 6

- To achieve economies of scale by producing and selling in larger volumes. - To diversify risk by not depending on a single domestic economy. - To take advantage of lower production costs or resources available abroad. - To follow important domestic customers who have also expanded internationally. Exam tip: Remember the order of increasing global commitment: Export Marketing (sell what is made at home) -> International Marketing (adapt to each foreign market) -> Global Marketing (one standardised strategy for the whole world). Quick Revision - Key Points to Remember - Agricultural marketing is challenged by perishability, seasonality and scattered small farms. - Industrial marketing = B2B; features derived demand, fewer/larger buyers, direct channels. - E-commerce types: B2C, B2B, C2C, B2G. - Internet marketing is interactive, global, cost-effective, 24/7 and measurable. - Telemarketing = phone-based selling; Televised marketing = TV-based selling. - Services marketing 4 I's: Intangibility, Inseparability, Variability, Perishability. - Export -> International -> Global marketing = increasing level of global commitment/adaptation. Possible Exam Questions Short Answer Questions - Define agricultural marketing. Explain its features. - What is industrial marketing? Mention its features. - Explain the meaning and features of internet marketing. - Differentiate between telemarketing and televised marketing. - Distinguish between export marketing, international marketing and global marketing. Long Answer Questions - Discuss the problems and prospects of agricultural marketing in Nepal. - Discuss the problems and prospects of industrial marketing in Nepal. - Explain the concept and methods of e-commerce with its importance to business.

Marketing | Class 12 Ch. 6

- Explain the special features of services marketing. - Explain the functions of agricultural marketing. End of Chapter 6 (20 Hours) | Next -> Chapter 7: Marketing Ethics and Social Responsibility (12 Hours)