Sourcing Decisions of Arts and Media Organizations Essay

Sourcing Decisions of Arts and Media Organizations - Essay Example Likewise, the process of fund raising and donations has rather become a commercial activity that not only has resulted in more and more charity events but has also created a market within that is funded by such large organizations. The amalgamation of social services and media and arts has been an eminent result. Hence the market for sponsorships has thrived. These can be seen by the famous charity events by BBC and FOX news (Dan 2011). Thus, activities like fundraising, donations and sponsorships are of strategic importance to such organizations which is why sourcing decisions are of integral importance to not only a firm’s financial standing but also to its public relations. It has no become a necessity to get the charity events sponsored or to sponsor a charity event for that matter, as it adds to the reputation and good will of the company. Likewise, firms involved in fundraising are evaluated on the basis of their participation in social activities and on this has become marketing an essential marketing tactics to broaden their customer base and reach of the brand. Fundraising events or sponsorships act as a contact point for several untapped markets and increases brand loyalty of the existing customer base (Pope 2010). Therefore, sourcing decisions are imperative. ... These may include the extended reach of its brand awareness, the objective to increase its brand exposure by having logos placed on the event’s advertisements or simply the motif of profit maximization. These objectives might sometimes conflict with the objective of the firm especially if the event is a charity event (Pope 2010). In that case both the parties will aim for different incentives thus the marketer must provide more substance than just logo pasting. Moreover, the commercial benefit of the sponsor may often be in direct conflict with the firm’s strategic goals. Hence rounds are negotiations are often common when sourcing decisions are made which however incur much costs for the firm (Simmons 2006). Therefore, the most crucial step is the decision to choose from the various candidates. A firm must choose the sponsor who is the best fit with the company’s strategic goals as well as its public image. The Consumer Involvement theory suggests that consumers make purchase decisions based on the level of involvement they have with the brand and includes the aspects of consumer behaviour like amount of time spent on choosing the product or service, research about the specific product or service, asking friends and family etc. therefore, like the advertisements and promotions, sponsorships should be based on such considerations (Krohmer 2011). Given the nature of arts and media products and services, which are high involvement decision making processes involving emotion rather than rational, the sponsorship should be based on consumers’ preferences of the emotional brands that they associate themselves. Hence if an organization is unable to identify the purchase decisions of its