Role of Advertising in Nepal

ROLE OF ADVERTISING IN NEPAL

1. Background of the Study

The advertisement market has developed due to globalization and industrialization and due to development of media, communication and broadcasting technologies. Nepali advertising sector is worth Rs 3 billion per year. It is often said that Nepali advertisements severely lack creativity, originality and inventiveness. However, the Nepalese advertisement fraternities flatly deny subscribing to this allegation. They are the view that the unrestricted airing of Indian advertisement has created this kind of such impression in the psyche of people. Nepalese advertising professionals optimistically predict better days for the advertising industry amidst various challenges. They views that if the government shows sincerity towards creating a favorable atmosphere for the rupees three billion industry, it will grow rapidly within very short period. "Advertisement has emerged as an indispensable tool for any business. Thus, it must take an upward spiral in a sustainable manner", they opine.

Nepali advertising industry is well equipped to successfully overcome the challenges to insert in advertisement in tandem with the demand and growth of the market. The trend of granting commission to advertising agencies in accordance to the sale of product has already been started in India. If the same trend is supplied here in Nepal, it will definitely sharpen the creative age of Nepalese advertisement agencies. Creative and successful advertising agency offers product based on the needs of targeted audience. Cinema Act and Regulation 2026 governs advertisements in Nepal. Advertising Association of Nepal (AAN) is taking the responsibility of coordinating, regulating and monitoring, as it is the umbrella organization of advertising agencies.

Increased competition has forced quality improvements and young people with international exposure are driving forces. The youth has convinced advertisers that the customer is king and this has changed the industry from a push to a pull market. The biggest irritant for most viewers on television is still to hear Indian actors on commercials with their voices dubbed with a stilted Hindi-accented Nepali.

1. Review of the Literature        

There are various competing models of hierarchies of effects attempt to provide a theoretical underpinning to advertising practice. The model of Clow and Baack stated the objectives of an advertising campaign and for each individual advertisement. The model considers six steps of a buyer that are involved in the buying process: Awareness, Knowledge, Liking, Preference, Conviction, and Purchase. Likewise, Means -End theory suggests that an advertisement should contain a message or means that leads the consumer to a desired end-state. Leverage Points aim to move the consumer from understanding a product’s benefit to linking the benefits with personal values.

For advertising marketing mix is taken into consideration which was proposed by Professor E. Jerome McCarthy in the 1960s. It basically consists of four basic elements called the “four Ps”. Product is the first P which represents actual product. Price represents the process to determine the value of the product. Place represents the variables of getting the product to the consumer such as distribution channels, market coverage and movement of organization. The last P stands for promotion which refers to the process of reaching the target market and convincing them to buy the product.

In the 1990s, the concept of four Cs was introduced as a more customer- driven which was the replacement of four P’s. There are two theories based on four Cs: Lauterborn’s four Cs (customer, cost, communication, convenience and Shimizu’s four Cs (commodity, cost, communication, and channel) in the 7Cs Compass Model (co-marketing). Communication can include advertising, sales promotion, public relation, publicity, personal selling, corporate identity, internal communication, management information system.

1. Statement of the Problem

The success of organization in this modern business depends upon the awareness of its product and service by the customers. And advertising is only a marketing tool that helps to inform, persuade and attract customers to buy the product. The research studies the current scenario of advertising in Nepal. It also highlights the role of advertising agencies in promoting growth and development of advertising industry in Nepal. The challenges faced by the agencies are also mentioned in this research project. The problem of this research can be explained clearly by finding the answer of the following questions:

1. What is current level of services provided by Welcome?
2. What is role of agency towards client satisfaction?
3. What sort of challenges is assessed in advertising?
4. What is the process of advertising in Nepal?
5. What is expected growth of advertising industry in Nepal?

1.4        Objective of the Study

Any kind of research is carried out to fulfill some objectives. This research also is also prepared to obtain some specific and general objectives. The aim of the study is to collect the information that will lead towards the knowing the advertising industry and its impact on Nepal. In order to have access in all the possible information, there are some objectives that can guide the entire study. The objective is to determine the recent trends being implemented in the corporate world, to measure the effectiveness of the advertising approach in the middle of challenges and changes within the business environment. Thus, some of the notable objectives of this research project are highlighted as follows: