Abstract
There is no huge industrial base in Peshawar. Most of the industries are either sick or closed and the operating units look for the short cuts to save most of the advertising cost, and for this reason advertising quality badly gets affected. Analysis of Primary, and secondary data of the study in hand describes the major problems for the advertising agencies in Peshawar which include bad debts, Late payments by the client and involvement of non-professional persons in advertising/publicity business. Such problems have restricted the advertising agencies to hire the services of the creative talent pool in the city, which resulted in the Brain drain of professionals to other parts of the country or to foreign countries. Advertising agencies also face major problem from the various associations, and the regulatory bodies of the trade-In addition to bad debts, and late payments the advertising agencies are also having pressures from clients or advertisers who expect other services free of cost like packaging consultancy, market research, website developments, and assistance at the distribution level which further increases the cost of advertising agencies. All these issues cannot be resolved with one go, but the efforts should be made to address all such problems. The starting points are the reduction of the risks of bad debts, and solve the problem of late payments particularly from government and government funded autonomous and corporate organizations and to increase in the commission rate from 15% to at least 25% for the advertising agencies by the media. The positive growth of adverting agencies and professional development of experts in the field will definitely contribute to the growth of business in Peshawar, which is need of the time to minimize the unemployment in the region.
Syed Amir Saeed, , Farzand Ali Jan, Muhammad Farooq Jan, Muhammad Faheem Jan. (2011) Problems of Advertising Agencies in Peshawa, Journal of Managerial Sciences, Volume 5, Issue 1.
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