It is obvious that the concept of marketing is being applied in every field of the society along with the business. Marketing is getting increasing importance with the necessity of it in every field. So, we can say that this is the age of the marketing. Today’s market is sensing the hyper competition since the business is being operated in globalize economy.
Many of the companies are becoming failure as they couldn’t implement the appropriate sales promotion and advertising tools to their business. This research will trace out the weakness of promotion and advertisement in order to achieve its goals and objectives. Customer complaints procedure, failure to implement consistent image, not considering the marketing Return on Investment, are the frequent mistakes in business procedure.
Marketing is typically seen as the task of creating, promoting and delivering goods and services to consumers and businesses. Marketers are skilled in stimulating demand for a company’s products. Marketers are responsible for the demand management. Marketing managers seek to influence the level, timing and composition of demand to meet the organization’s objectives. Marketing deals with identifying and meeting human and social needs, marketing efforts help to achieve organizational goals. It helps organization to find out what their customers need and want and to decide what product or service to offer so that the customer’s need and want can be best satisfied. It is concerned with attaining and retaining customers and winning long term customer loyalty.
“Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others.” (Kotlar, 1994)
Marketing consists of promotion and promotion consists of advertising. These three marketing terms are interrelated. These three terms are devoted and oriented towards the business promotion, growth and success.
Marketing can be defined as “The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.” (Peter, 1995)
The above definition implies that the entire system of business activities should be wholly customer oriented. Customers’ needs and wants must be identified and fulfilled effectively. Marketing process should began with the idea of a new product, good, services, place, person and continue till the needs and wants are satisfied. So, the marketing always attempts to meet the satisfactions of customer.
Promotion is a part of marketing. Today the scope of marketing is growing so rapidly due to the expansion of the market. As market demand increases along with the changing test, new and new products are being introduced in the market. Due to the rough competition and sophisticated market the companies are bound to face new and ever changing marketing realities.
It is a part of promotion as mentioned before. The word advertising is being pronounced everywhere. The word “Advertising” itself is being advertised. Here are some of the definitions of advertising given below.
“Advertising is any paid form of non-personal presentation and promotion of ideas, goods and services through mass media such as newspapers, magazines, television or radio by an identified sponsor”. (Kotler and Armstrong, 1995)
“Advertising is the means by which we make known what we have to sell or what we have to buy.” (Agrawal, 2008)
Above definitions of advertising emphasize on the selling objective of the company. It says that the advertising planning and implementation are done to secure more sales with less cost contribution. But unlike the salesman who sells in a face-to-face or even voice-to-voice situation, advertising is just a broadcast fashion to numbers of prospects whose identity may or may not be known. And who may be close at hand on distance.
Advertising Trend in Nepal
It is not declared that from when the advertisement trend got started in Nepal. However, it is said that to convey king’s addresses to the country from the very beginning, a media was used. It is assumed that after some time this trend became the media of advertising. Above mentioned trend was the advertisement for the non-business advertisement began with the dealer business.
In 1908 B.S. the Prime Minister Jung Bahadur Rana had brought a press in his visit to England, which was called “Gidde Press”. But further this press was used to print envelops, tickets, and government bulletins only so, this press could not run the business in the field of advertisement. (Rathor, 2003)
“Gorkhapatra” was started on printed on weekly basis from Baisakh 24th 1958 B.S. In the first edition of “Gorkhapatra”, in the editorship of Pundit Nardev Motikrishna Sharma published by “Pashupati printing press”, an advertisement was printed. Then after, different magazines in Nepali language appeared. (Rathor, 2003)
Since 20th Chaitra 2007 B.S. Nepal Radio now name changed to Radio Nepal started its transmission. After that time transmission of commercial advertisement started. Initially “Ratna Recording Corporation” was providing the advertisement services and used to deposit the accumulated sum of money to Nepal Radio. Nowadays Radio Nepal has its own advertisement services. (Panthi, 2006)
From 29th Shrawan, 2042 B.S., Nepal Television has started its ril transmission. It may be assumed that from that day television advertisement is started in Nepal. The time period of trial transmission of Nepal Television was up to 14th Poush, 2042 B.S. From this day “Nepal Television Corporation” was formed and started its transmission regularly. Now “Nepal Television Corporation” is 15 years old and out of its total transmission time 9.5% of time is taken by advertisement. In this television 58% of national and 32% of foreign advertisement are transmitted. In these years of time, advertisement in Nepal Television has obtained great deal of success. (Panthi, 2006)
“Some multinational companies with foreign collaboration have a good and attractive advertisement like the advertising of Coca-Cola, Pepsi, Cola, Liril, etc. In Nepal a small percentage of the population own television set because of their poor economic condition. It can be said that only 39% of the total population can only watch the national program on N.T.V.” (Panthi, 2006)
Effectiveness of Advertising
The effectiveness of advertising can be understood by the changing attitudes and behavior of the customers. Advertising has become the powerful device for increasing sales and at the same time, large sum of money are spent on it. In the face to mounting advertising costs, on the one hand, and a squeeze on profitability, on the other, top managements are increasingly concerned about the cost benefit of advertising in the operation of a business. The value of advertising cannot be determined unless its role and function are understood. The unaccountability of advertising, in most cases arises from a lack of appreciation of what advertising can or cannot do. (Dahal, 2001)
Advertising should be viewed as a part of total marketing effort of a company. The glib answer to the question: why do companies advertise? Is: To sell products. But in recent times, increasing number of advertising personnel has been frankly saying that advertising cannot actually sell products. However the objective that involves an increase in immediate sales is not operational in nature in many cases for two reasons. (Dahal, 2001)
Advertising is only one of the many factors influencing sales and it is difficult to isolate its contribution to those sales. The other forces include price, distribution, packaging, product features, competitive actions, and changing buyer needs and tastes. It is absolutely difficult to isolate the effect of advertising. Evaluation advertising only by its impact on sales is not practical. (Dahal, 2001)
Advertising, sales promotion, personal selling and public relations the mutually reinforcing elements of the promotional mix, have as their common objective the successful sale of a product. Once a product is developed to meet target market needs and is properly distributed, intended customers must be informed of the product’s value and availability. Advertising and promotion are basic ingredients in the marketing mix. All the elements in promotion mix are contributing to each other’s performance towards successful marketing and selling.
Review of Some Previous Related Studies
There are some similar studies which had been conducted previously about advertising and sales promotion. The advertising research has very short history in Nepal. Professionalism and highly advanced marketing and advertising practices have not institutionalized here in Nepal. However, the Nepalese business environment is also influenced and the entrepreneurs have recognized the need of advertising. For this, some research studies are conducted on Advertising and Sales promotion.
The first study on advertising field is conducted in 1980 by P.R. Pandey. The study named as “Advertising in Nepal” is focused on the objectives of identifying the existing position of advertising practices in Nepal. The other objectives of this study were to find out the existing pattern and blends of advertising and the constraints prevailing in advertising practices in Nepal. His study was confined to the descriptive analysis of the situation of advertising business. It was natural to undertake such research on advertising field at that time as the advertising was still infant stage of development. Thus, his study did not touch the creative aspect of advertising. (Pandey, 1980)
The major findings of the study state that the advertising is the main method of promotion practiced in the country. Advertising in the company is handled by persons at the senior level, when there is a separate advertising department in the company. Regarding to the services rendered by the advertising agencies, none can offer full services properly.
In 1981, S.K. Upadhyay on “Radio Advertising and its impact on purchasing acts in consumer goods” conducted a study. As radio was only the reliable medium of advertising in Nepal, he conducted the research on the radio advertising and its lively impact on purchasing acts in consumer goods. In his study he has listed twenty different findings regarding the radio advertising and its impact on purchasing decision. The objective of this study were to study the availability and comparative cost of different forms of advertising in Nepal to find out the impact of radio advertising on consumer buying behaviors and to study the influence of radio advertising on sales of the advertised product. Thus his study is strictly confined to the impact of advertising on sales and consumer buying behavior. (Upadhyay, 1981)
The other study conducted by Laxmi Prasad Baral is found in advertising field. He conducted the study on the “Communication effect of advertising and brand preferences of instant noodles”. His study has been contributed to the evaluation of communicative function of advertising and its impact on brand selection in the case of consumer non-durable goods. The objective of the study was to explore the effect and communication of product brand attributes and its likely impact on consumer brand selection regarding the instant noodles case as the basic product. Thus, his study specifically dealt with communicative aspect of advertising. (Baral, 2001)
Mr. R.K. Shrestha has done one more attempt to advertising research. The study named “The Role of Advertising in Brand Choice and Product Positioning” has been conducted to find out the role of advertising on brand choice of low involvement consumer goods. It is the study trying to show the importance of advertising on brand choice of low involvement products. The objective of this study was to find out if advertising plays any supportive role in brand choice decision, if the consumers brand choices for low involvement goods are completely, partially or not impressed through advertisement, if there exists other promotional tools which have more weight in brand choice decision than advertising. (Shrestha, 2004)
However, there are no previous research reports found on marketing studies of Nepal’s Automobile sector. Researcher has attempted to prepare and present this report with her fullest effort. All possible primary and secondary sources of data are collected, analyzed and presented here in suitable manner.
Hyundai Motor Company is the parent company of Hyundai Motor India Limited. Hyundai Motor India Limited is producing and selling various lines of cars along with Santro cars on which this study focuses. Hyundai Motor has scaled numerous obstacles and overcome the odds to earn global recognition for the advanced technology and quality of its automobiles. The company is pressing ahead to achieve its goal of joining the ranks of the world’s elite automakers-the global top five-backed by its sophisticated R&D capabilities, state-of-the-art production facilities at home and abroad plus aggressive market strategies. So as long as Hyundai Motor abides by its commitment to offer high quality products with advanced, environment-friendly technologies and which are sold through a competitive global marketing network that takes full advantage of innovations in information technology, Hyundai Motor’s ambition is to become one of the global top five automakers within ten years.
Implementation of sales promotion and advertising without considering customer complaints, consistent image on advertisement, marketing return on investment are the most common mistake that many companies do. So in this project, learning from mistakes made by others and by itself plays a vital role in business success.
The financing of product also plays a important role in Nepal. Hence the along with the implementation of advertising and sales promotion, financing option will be the implemented. The exchange offer and free service of automobile will also be implemented in order to increase sales revenue.
Research aim, research questions or hypotheses and objectives
The study will focus on the effectiveness of advertising and sales promotion of the automobile car in order to increase the sale revenue and long term success.. The practices of advertising and sales promotion are getting increasing importance and scope in the marketing management. At the same time it is getting vast with the competitive environment of the subject, i.e., advertising and sales promotion. So, it is important to build strong and wealthy marketing strategy & policy to understand, win & retain the market for the product or service. And again the implementation of such policy and strategy should in optimum manner. Hence the study is to describe the effectiveness of advertising & sales promotion especially concentrating on auto motive world. The study will focus on the advertising and promotional behaviour of the business houses who are handling automobile business in Nepal, and how they are being active in attaining and retaining the market share here in Nepal.
This research is entirely focusing on enhancing the sales of Hyundai Santro Zip Plus Car with the help of marketing tools. How do the sales promotion and advertising tools play important role in sales of Hyundai Santro Zip plus car in Nepal? The analysis of the advertising media, sales promotion tools available in Nepal plays a vital role in this project.
The research objectives are as follows:
To evaluate effectiveness of advertising and sales promotion for attaining and retaining the market concentrating on automobile business in Nepal.
To examine the brand awareness of customer for automobiles.
To analyze the importance of promotion in building company’s reputation
To review the market status of Hyundai motors.
Research methodology is concerned with various methods and techniques which are used in the process of research studies. It includes wide range of methods, including quantitative technique for data analysis and presentation.
The present study has its objective to analyze, examine and describe the application and defectiveness’ of marketing and sales promotion strategies and techniques. The research methodology will be followed to attain the basic objectives and goals of this research work.
The objective of the study is to evaluate effectiveness of advertising and sales promotion for attaining and retaining the market and to review the market status of Hyundai Motors and the research design is developed to fit the study.
The research design of this study is descriptive as well as analytical. This is the study of practical use of marketing and sales promotion tools and their effectiveness, so the appropriate research designs are followed according to the requirement of the study.
Population and sampling
Population consists of the total Santro car owner in Kathmandu, Nepal for this study. It includes well-defined number of the car owner. Population is called universe in other words. Sampling is selecting certain number of respondents out of population. Sample is taken out of whole universe. The accuracy of research highly depends upon the data provided by the sampling unit. The respondents in sample are believed to be the true representative of the population.
Sources of Data Collection
Both primary and secondary data and other sources are used for the research study. Primary data are collected from field survey, questionnaire and personal interview. Secondary data are gathered from the published materials, books, booklets, journals, magazines, publication of Nepal Automobile Dealers Association (NADA) and Department of Transport Management and similar previous dissertations and other publications.
Data Analysis Tools
Graphs, tables, chart and percentage are used to analyze and present the collected data and information to make it more easily understood. Noble descriptive analysis and presentation will be made.
Method of Data Analysis
The data collected from different sources are classified, tabulated and analyzed according to the needs of the study. Necessary tables are constructed to fit the data obtained from different sources.
Data collection technique
Observation tools are the most reliable tool to collect the data from the user of automobile in Nepal.
This is the most reliable two way communication of data collection method. This is one of the most reliable primary data collection method and the feedback from the customer of automobile also play a vital role to determine the need of the customer.
In this method the question related to the Hyundai Santro Zip plus car and its features and the question about advertisement effectiveness are placed to the user and via email and the data feedback are analyzed in order to draw up the conclusion.
The questionnaire about the sales promotion and advertisement will be sent by post and the responses will be analyzed
Timescale helps to decide on the viability of the research proposal, which helps to divide research plan into stages. This project will be based on estimated time frame. The total duration for this research project will be approximately 5 month. The allocation of time is presented in table and gantt chart below.
Review of Literature
Data Analysis and Presentation
Summary, conclusion and Recommendation
The Gantt chart :
2 4 6 8 10 12 14 16 18 20 22 24
C Review of Literature
D Research Methodology
E Data Analysis and Presentation
Summary, Conclusion and Recommendation
This is another facet of viability. The resource for this research are categorized as finance, data access and equipment. I have access to computer hardware and software access to collect data and analyze.
Primary resources and secondary resources will be used for data collection. Primary resources include formal Interview, informal interview, observation, questionnaire, and field survey where as secondary resources such as journals, National survey data, published data and media also play the vital role to analyze the automobile market.
Primary resources are the data that are collected for the first time. The Interview method is the genuine source for the data. For data collection the sample unit of Kathmandu, Nepal will be interviewed. Telephone interview and online interview is helpful for this project.
The secondary resources also play a vital role in data analysis. The journals, National survey data, media, books are used as secondary resources in this project.
Conducting a research costs money. Hence Finance resource plays a vital role. To organize telephone interview, Online interview, Postage for questionnaire, access to the secondary data, travel, subsistence, finance resource is essential for this project.
One of the important resource for this project is time resource. And the estimated time for this research project completion is 5 month which is enough to carry out its objectives.
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