Copyright Durham Consulting Group
Limited 2013
Obstructive Marketing
Challenges To Globalisation
Copyright Durham Consulting Group
Limited 2013
‘It was the best of times, it was the worst of times,
it was the age of wisdom, it was the age of
foolishness, it was the epoch of belief, it was the
epoch of incredulity, it was the season of light, it
was the season of darkness, it was the spring of
hope, it was the winter of despair, we had nothing
before us, we were all going direct to heaven, we
were all going directly the other way.’
Charles Dickens - ‘ A Tale Of Two Cities’
Copyright Durham Consulting Group
Limited 2013
‘ International Marketing is concerned with
planning and conducting transactions across
national borders to satisfy the objectives of
individuals and organizations. The international
marketer is subject to a new set of macroenvironmental factors, to different constraints,
and to quite frequent conflicts arising from
different laws, societies and cultures.’
Source: Czinkota and Ronkainen (2012)
Copyright Durham Consulting Group
Limited 2013
• Obstructive Marketing
‘Any process, legal or not, which prevents or restricts
the distribution of a product or service, temporarily or
permanently, against the wishes of the product
manufacturer, service provider or customer’
Maitland P Hyslop (1997 – 2013)
Copyright Durham Consulting Group
Limited 2013
• Risks:
–
–
–
–
Casual
Competitive
Criminal
Cultural
Copyright Durham Consulting Group
Limited 2013
• Casual Risk
– Anarchists
– ALF
– Anti-Abortionists
– Fundamentalists
– Anti-Globalisation Groups
Note: 30% of survey suffered from Casual Risk problems
Source: MP Hyslop/Northumbria University Survey 2012
Copyright Durham Consulting Group
Limited 2013
• Competitive Risk
– Defensive Marketing
– Market Share Issues
– Agency Agreements/Licence Agreements
– Legals – EU/USA Competition Laws
– Non-Tariff Trade Barriers
Note: 50% of survey suffered from Competitive Risk problems
Source: MP Hyslop/Northumbria University Survey 2012
Copyright Durham Consulting Group
Limited 2013
• Criminal Risk
– Industrial Espionage
– IP/Copyright/Patent Infringement
– Distribution Chain Irregularities
– Fraud
Note: 15% of survey suffered from Criminal Risk problems
Source: MP Hyslop/Northumbria University Survey 2012
Copyright Durham Consulting Group
Limited 2013
• Cultural Risk
–
–
–
–
–
–
Alcohol in Islamic countries
Coca Cola in a number of countries
Straight - talking bankers in many countries
Media in China, Iran, Russia
Food in Israel, Arab States, Far East
Fertility Drugs in China, USA and elsewhere
Note: Institutions or SIGs are most prone to cultural risk
10% of survey suffered from Cultural Risk problems
Source: MP Hyslop/Northumbria University Survey 2012
Copyright Durham Consulting Group
Limited 2013
• When At Risk
– Weakness
– Strength/Complacency
– New Markets
– Innovation
– Change
Copyright Durham Consulting Group
Limited 2013
• Weakness
– Poor Market Share
– Bad Results
– Change In Management
– Stock Price Fall
– Unsolicited Take-Over Bids
Note: 20% Of ‘Attacks’ Occurred During Weakness
Source: MP Hyslop/Northumbria University Survey 2012
Copyright Durham Consulting Group
Limited 2013
• Strength/Complacency
– Arrogant Board
– Time Served CEO/Management
– Mature Product Lines
– Undermined Leadership Position
– Stagnant Growth
Note: 33% Of ‘Attacks’ Occurred During Strength
Source: MP Hyslop/Northumbria University Survey 2012
Copyright Durham Consulting Group
Limited 2013
• New Markets
– Cultural Misunderstanding
– Poor Marketing Skills
– Inappropriate products
– Poor Leadership
Note: 15% Of ‘Attacks’ Occurred During Entry To New
Markets
Source: MP Hyslop/Northumbria University Survey 2012
Copyright Durham Consulting Group
Limited 2013
• Innovation
– New Products
– Different Distribution
– Business Process Re-engineering
– New People
Note: 16% Of ‘Attacks’ Occurred During
Innovation
Source: MP Hyslop/Northumbria University
Survey 2012
Copyright Durham Consulting Group
Limited 2013
• Change
– Management
– Branding
– Recipes
– Design
– Function
Note: 21% Of ‘Attacks’ Occurred
During Change
Source: MP Hyslop/Northumbria University Survey
2012
Copyright Durham Consulting Group
Limited 2013
• International Marketing Risk - Exposure
– Northumbria University Study 2012
• 504/1625 individuals had suffered
(31%)
• 143/946 SMEs had suffered (15%)
• 57/170 major Corporates had suffered
(33.5%)
• Trend is upward
Source: MP Hyslop/Northumbria University Study 2012
Copyright Durham Consulting Group
Limited 2013
Minimising Risk, Maximising Value TM
Copyright Durham Consulting Group
Limited 2013