Monday, April 19, 2010

Market Segmentation in Nepal

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Market Segmentation in NepalThe supplier driven Nepalese market generally practiced mass marketing approach with product variations in the past. The socio-economic changes and developments in transport and communication system have made Nepalese marketers conscious of market segmentation. The marketing strategies of global organizations like Coca Cola, Pepsi, Nepal Lever and Standard Chartered Bank have reinforced this consciousness.

The following points describe the practices of market segmentation in Nepal.

1: Non-systematic: Segmentation is generally not based on systematic market research. Past experiences, hunches of management, and competitor's strategy have influenced segmentation.

2: Variables for Segmentation: The variables mostly used for consumer market segmentation are:
  • Geographic
  • Demographic
  • Psychographic
  • Behavioural
3: Lack of Information: Nepalese marketers lack comprehensive information about consumer characteristics. They tend to regard marketing research as a "wasteful cost". This has constrained the effective evaluation of market segments in terms of their attractiveness and appropriateness. Risks are not properly assessed.

4: Government Policies: Government policies in Nepal are not very supprotive of marketing. They do not regard businessmen as partners for development. Restrictions of movement of goods and controls have discouraged market segmentation.

5: Lack of Ethical Considerations: Environmental and welfare considerations are generally disregarded for market segmentation in Nepal.

The above points clearly indicate that the concept of market segmentation is at an initial stage in Nepal. However, the importance of market segmentation is likely to increase in the years to come.

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