Distinguish between reactive and proactive marketing.

Proactive Marketing

Proactive marketing involves anticipating market trends, customer needs, and competitor actions before they fully emerge. Firms design and launch new products, promotional campaigns, or distribution strategies based on market research, forecasting, and strategic planning. The aim is to shape demand, create a first‑mover advantage, and influence consumer perception rather than merely responding to external events.

Reactive Marketing

Reactive marketing is a response‑driven approach where a company adjusts its marketing mix after a change in the market environment—such as a competitor’s price cut, a sudden shift in consumer preferences, or an unexpected crisis. Actions are typically short‑term, focused on damage control, price matching, or capitalising on emerging opportunities that were not foreseen.