Sponsorship In The Marketing Communications -Myassignmenthelp.Com

Question: Discuss About The Sponsorship In The Marketing Communications? Answer: Introducation 7-Eleven is an American-Japanese convenience store located in Texas and Chiyoda. The company was established up in 1927 under the name of Totem Stores. Currently, 7-eleven has over 56,000 stores spread across 18 countries all over the world. It also has over 45,000 employees working for the betterment of the company. The company manufactures and sells products that include various types of beverages, prepared foods and gasoline. Due to the sale of these items, the company gain an added advantage over its competitors (7-eleven.com, 2018). Country and Market 7-Eleven is spread across all 18 different international countries. However, the main countries in which it conducts its business are the United States and Japan. The market of the United States comprise of a mixed economic system that consists of both free markets and planned control of the economy. The market in Japan focuses more the industrialisation of services. In terms of manufacturing, Japan is considered as the best country in the global market. Hence, these contrasting type exits in the market of both countries. International opportunities The international opportunity of the company is through the marketing development. This is done by increasing the number of stores. It has already been established that 7-Eleven has set up stores in 18 different countries. However, more expansion can be undertaken by creating marketing opportunities in other developing counties in the world. This can help the store to understand the diversity that exists within the people of other nations. According to Papadopoulos and Heslop (2014), it is necessary for the company to conduct a proper environmental analysis before investing in the country. Research and Sources of Evidence To identify a target market it is essential that managers of a company conduct a proper market research of the country. 7-Eleven need to identify the working capital that is required for its growth in the international market. The support required for storing inventory and the overall resource planning that is required needs to be researched. Evidence of these factors can be obtained by following the market, journals and website information. Assumptions and Limitations 7-Eleven need to assume that the store can gain success in the international market by mitigating all the potential threats. However, the limitation that the store may suffer is the cross-cultural marketing research technique (De Mooij 2015). Adjustments need to be made so that the profitability is maintained and the company can look to be the biggest retail chain in the country. This can provide 7-Eleven with an opportunity to continue its production line and expand into other regions of South Asia. Country The country that the company can target is India. This is because India is a country of diverse people. Hence, the company can manufacture and sell items that are of diverse nature and gain the trust of the customers. Entering into the Indian market economy is not a threat to foreign companies as a business in India is always welcomed. The market structure follows all type of marketing strategies that provide more opportunities for success. Target market As stated by Armstrong et al. (2015), target market helps an organisation to remain precise of the type of customers and the products it needs to manufacture. In the case of India, the target market of 7-Eleven can be the younger generation that aware of the use of technology and take considerable interests in the activities of a supermarket. However, it is required that 7-Eleven elevate their online marketing strategy before targeting the younger generation of the country. GO international decisions and definition of International Marketing According to Morschett, Schramm-Klein and Zentes (2015), international marketing is a simple way to achieve profit by satisfying customers. This implies that the marketing managers of every company need to comply with the satisfaction of the customers by focusing on their needs and value. GO international decision is originated from within an organisation. Most of the times, however, it originates with the motivation that is provided by customers. Sometimes the corporate mission of a company drives the objective of GO international decisions. However, an audit can be done of 7-Eleven that can help in understanding its position. Strength Proper location Equity in brand Weakness Expensive rental cost Expensive labour payment Opportunity Market development Too many products Threat Competitors Availability of online shopping Table: SWOT analysis of 7-Eleven (Source: Created by author) Political Risk The political scenario in India is unstable and because of this, organisations may suffer a huge loss. The change in political figures may hamper the work progress as the parties may demand a cessation of work and bribes for allowing its continuity (Henisz and Zelner 2013). It has been seen that during the election system in India, organisations suffer more loss as people remain occupied in casting their rights for the benefit of the country. Hence, this is can be a huge loss for 7-Eleven after its expansion. Market Risk In India, one of the biggest market risks that a company may face is the fluctuating economy (Mathews et al. 2016). It is seen that the inflation rate of the country is high. This can create huge problems for the people of the country shy away from investing in products. The rate of conversion of currency in the country takes time, as legal documents need to be verified and re-checked by the Government before making it legal. Operational Risk Operational risk can occur due to the losses incurred by an organisation and the failure it had on building up a good business structure. The losses that have been incurred may result from internal as well as external factors (Fantazzini, Dalla Valle and Giudici 2018). In this regard, it can be said that in India, 7-Eleven may have to deal with losses incurred due to the continuous change in political as well as legal factors of the country. Organisations need to change the method of work each time these factors are changed. Ownership Risk According to Schmid, Grosche and Mayrhofer (2016), ownership risk can be considered as an event that may cause hindrance to a company for earning any investment projects. Such hindrance can come from the Government of a country, as many debates and considerations need to be taken into account before undertaking a project. In a country like India, the interference of the Government in organisational activities makes it a challenging factor for any company to continue its investment in a project. However, with proper negotiation it such risks can be mitigated. Financial Risk The financial risk includes the loss of money if a company has a huge number of debts (Dooley 2018). During expansion into a foreign country like India, 7-Eleven may expose the company to such a risk, as they may need to borrow a certain sum of money for the successful expansion of business. Hence, it is important to have proper financial backup particularly with the aim to expand into international market. Figure 1: Risk factors (Source: Created by author) Profit Advantage According to Koh and Wong (2015), the profit of a company helps it to continue its production in the market and expand its reputation. With sufficient profit earned, 7-Eleven can indulge in the innovation of products and satisfy the need of the employees. Employees can be provided with extra incentives because of the profit that has been earned by the company. Hence, earning profit need to be the ultimate goal for 7-Eleven to make successful progress in the Indian market. Unique Product The uniqueness of a product is always an advantage for a company as it helps in gaining a competitive advantage over the rivals. In India, 7-Eleven can introduce new products that can attract the Indian customers to purchase the products for the benefit of the company. The new product that can be introduced is a non-alcoholic drink that does not harm the health of the people. However, it needs to be kept in mind that other companies do not replicate the method used for making the product unique. This can lead to loss of competitive advantage for the company. Emerging Demand The demand for a product depends upon certain factors such as lifespan and the uniqueness that an item sold provides (Cavusgil et al. 2014). The monotonous nature of a product also contributes to its demand as people expect uniqueness in every product. The target market of 7-Eleven in India expects products that are unique in nature and provides an opportunity to remain loyal towards it. Hence, the demand for the products may decline if 7-Eleven does not incorporate new things for the satisfaction of the target market in the country. Excess Capacity The excess capacity of an organisation can be a huge disadvantage as companies may find it difficult to manage the stores (Bloom and Milkovich 2018). This one disadvantage is faced by 7-Eleven owing to the vast amount of stores that it possesses. However, since India is a vast country it is essential for 7-Eleven to maintain excess capacity so that the products can be manufactured easily on demand. This can help the company to maintain the objective that is set out once an organisation decides to indulge in international marketing. Encouraging Entrance Entering into new markets in a country is often encouraged by the Government of a country. However, it is to be seen that proper and legal considerations are kept in mind before allowing companies to establish itself in the country (Petersen, Kushwaha and Kumar 2015). In the case of 7-Eleven, the company can be encouraged to enter the market as it can help in the increase of the economic condition of India. Subsequently, the company can encourage employees to seek employment in the sectors. Strategic Control Strategic control refers to the process preferred by organisations to control the formulation of strategies. The employees involved in making strategies control the execution of strategies in haste. This is done by analysing the marketing situations and ensuring that the strategies are applied after careful consideration of the business factors. 7-Eleven need to control the execution of its strategies as the Indian economy can be unpredictable and can lead to severe problems for the company. Operational Control Larsen, Smith and Rosenbloom (2015) stated that operational control is required in order to ensure that the daily activities of an organisation are aligned with the target objectives and plans. This can help an organisation to identify any flaws in the management and ensure that necessary actions are taken for improving the conditions. 7-Eleven need to ensure that the company in India can motivate employees and educate them about the strategic and sustainable use and allocation of the resources of the organisation. This can help the company to remain focused on the purpose of expansion into the country. Marketing Control Marketing control is the manner in which the proposed marketing plans are monitored and controlled. Adjustments are made to the areas that required changes after the analysis of the market. It has been seen that objective and control co-exist simultaneously and helps in the formation of routes that can help an organisation to make effective strategic decisions. In the case of 7-Eleven, the company need to execute such marketing control policies so that the market of India can be analysed properly. Quality Control This refers to viewing the quality of all the factors that exist in the line of production. It is the duty of the managers to ensure that the qualities of products that are manufactured are consistent (Keegan and Green 2015). This can help in reducing criticism and satisfy the customers. 7-Eleven need to maintain the quality of products that it sold in the other markets to gain the loyalty of the customers. The qualities have to be excellent along with proper quantity and price to attract the attention of the local customers and gain an advantage in the Indian market. Financial Control The financial control of an organisation aims to achieve the desired return on investments. This can help an organisation to manage the finance by reducing the amount of bribes that are provided and other unnecessary investments in the business (Russo and Fouts 2017). This can be done by the use of financial statements such as budgets, operating ratios and other financial tools such as import and export factors. For 7-Eleven, it is another important factor to be considered in India as getting legal documents from the country requires costly procedures. Level of Involvement The level of involvement in the international market depends upon the business a country has in the cross-cultural business (Baker and Saren 2016). The level of involvement can be experimental as well as a policy decision. Either way, it may help an organisation to assess the external business environment of a country. Similarly, 7-Eleven can be involved in the market of India by analysing the profit level it can incur in the market. Hence, it can be recommended that 7-Eleven can secure a low level of involvement initially to analyse the success factors that can be attained. International Marketing Communication and decisions International Marketing Communication (IMC) outlines the essential elements that are required in the marketing framework. The vision, mission and objectives of a company drive the decisions that lead to the incorporation of the marketing mix strategies. According to Samaha, Beck and Palmatier (2014), the target market, segmentation and positioning of an organisation needs to be carefully addressed for the purpose of adapting locally and gaining competitiveness. A cross-reference needs to be made to confirm the points made after the initial analysis. IMC- International Marketing Communication process To ensure that 7-Eleven gain proper recognition in the market, it is necessary that the company set up target audience. This target audience needs to be the younger generation of the country that are involved in purchasing the products sold by 7-Eleven. This can help the company to maintain its competitiveness and ensure that the company can gain an advantage over the local markets that are established in the region of business. Determine communication objectives A communication objectives need to be similar to the marketing objectives of a company (Chen and Xie 2018). It needs to take into consideration the various factors that need to be analysed before setting up any marketing strategies. In this regard, it can be said that the communication objectives need to address the objectives of the company as well. For 7-Eleven, the marketing objective can be to increase profit by ensuring that proper advertising of the company is done in the Indian market. Establish the promotion budget In order to ensure that proper marketing is done, companies need to promote its products to the people. This can help in creating awareness among the customers and gain their attention towards the company (Narver and Slater 2014). However, it is important to consider the finances of the company before investing on the promotional activities. In the case of 7-Eleven, the promotional budget that the company can spend is about $130,000 that includes promotion via advertisement via television and endorsing a product placement policy. Decide on the promotion mix The promotion mix that needs to be undertaken will depend upon the budget of an organisation (Meenaghan 2017). Every organisation need to frame an annual budget keeping in mind the promotion technique that is being used. Hence, the promotion mix that can be adopted by 7-Eleven is the use of social networking sites and the advertisement of products using television and newspaper. This can help in reaching a greater number of audiences, as people of all generation are engulfed in watching television shows in India. Measure promotional results According to Baloi and Price (2013), the promotion of products is done by using various sources within the budget limit of a company. However, it is necessary that a proper promotional channel be selected so that it can be used to reach out to the customers regularly. In the case of 7-Eleven, the company need to estimate the finances required for the promotion of the products so that they can identify the proper method. The results obtained from the use of the promotional technique can be assessed by the amount of sales that a product encounters. Hence, this is another factor that needs to be considered before choosing a promotional method. Benefits of IMC process IMC can help in boosting the sales and consequently can contribute in building up the profit of an organisation. It helps in saving money, time and stress. According to Baker, Hozier Jr and Rogers (2017), the process involved in IMC provides comprehensive yet detailed steps that need to be followed so that the effectiveness of an organisation may increase. The implementation of pull and push strategies adopted in the process can help in satisfying customers by providing the type of product that they want. Conclusion The report can be used to convey knowledge about the importance of conducting an environmental analysis before expanding in international markets. The importance of the analysis is that it helps managers to prepare an organisation in a way that is guaranteed to bring about success. International Marketing Communication can help in identifying the essential elements required for marketing and provide organisations with an opportunity to exist in the market. Key findings To survive in a place like India, 7-Eleven need to provide unique products to the customers. The products need to be of good quality. Apart from this, the company need to abstain from undertaking unnecessary financial ventures that can be problematic for the company in the future. Advice intelligence and insights The external analysis helps in gaining an insight into the Indian market and the intelligence highlights the nature of the Indian market. The insights obtained from the analysis of the marketing environment can help 7-Eleven to cope up with the challenges that they may face in foreign countries after expansion. Relevant implications The implication of the International Marketing Communication can be relevant to the implication of marketing mix for the success of an organisation. The external environment also warrants the analysis of the marketing factors that are required for gaining a competitive advantage. 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